Credit cards lower late fee, returned payment fee and more
As I lamented before, those no-fee 0% interest for 12 or even 15 months balance transfer offers became the things of the past, because the whatever credit card / debt reform it was, severely limited ability of banks and credit card issuers to make money on those bozos who were late on monthly payments, whose checks bounced and who totally mismanaged cash advances on their credit cards. In short, banks and credit card issuers lost their best cash cow, actually a few cows. Thus, they had to make it up somewhere else. Hence, they start charging 3% to 5% on those balance transfers. As you see, my writing is even worse than usual. That is because I ticked off. Now smart credit card users like myself, have to pay more. Just got a letter from a certain credit card company (no names please) which basically lowers all the fees - late fee, returned payment fee and returned access check fee. Since I am never late and never do the other stupid things which the above mentioned fees are imposed for, obviously, I will have to contribute in some other ways into the credit card lenders bottom line. For those regular late payment / returned access check offenders, the lower penalties are obviously good news.
Late payment fee
Will be $25 if you haven't been late in the previous 6 billing cycles. $35 if you have been. The late payment fee can't exceed the total minimum payment due and if your balance is $100, no late fee is assessed. Previous late fees were $15 for balances of $100 or less, $29 for under $250 and $39 for everything else.
That $15 fee for the balances of $100 was likely one of the top money makers for credit card lenders as many consumers, especially young ones were routinely late. Watch out for more fees coming to compensate
Returned payment fee
The was lowered from $35 to $25 if a payment on the credit card account is returned for any reason, including insufficient funds. This fee can't exceed the total minimum payment due.
Returned access check fee
If you make a transaction using a card access check and the credit card lender returns such a check unpaid for any reason, the fee is $25. But it can't be higher than the dollar amount of the access check. In other words, if you use an access check for $50 and it is returned, you pay $25 fee. If you make a $10 check and it is returned, your fee is $10.
Wed Dec 1, 2010 11:12AM | Copyright: www.bad-credit-advisor.com | More in Personal Finance | Comments (0)
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