Fees for paying on time or "inactivity"

[tacatcon]

Oh yes we knew it was coming. The credit card companies have figured out a new way to screw us and make money off us.

I just heard on the news that a few credit card companies including Citigroup are now considering having or have implemented fees for a) paying your balance on time in full AND/OR b) inactivity

So you're screwed if you don't pay on time and don't pay in full and you're screwed if you do. Hmmm seems fair to me!

Now this is where we need the government to step in. Never mind messing with my tax dollars. Tell these fat credit card companies to stop trying to put the screws to us at every turn.

I'm so glad we already got our mortgage and now if we cancel all our cards it can't hurt us.
RIDICULOUS

[kimandkathess]

I heard this this morning too. I actually got a credit card application in the mail yesterday....and even thought sending the application in, so I could "repair" my credit.....Well I must say, I am happy I ripped up the Application. I would rather just keep my cash and find other ways of repairing my credit.

~~Katrina~~

[lbrown1618]

Does anyone have a link to the story online?

[saving-n-va]

Well.....you could (in my most sneaky voice) charge $5 a month and pay off $4...leaving $1 balance. Therefore not paying it it "full" and still having "activity". I have an emergency card and if my bank starts doing that, I will do something like this to keep it active.

[queenofthehivemomof5]

That is bull.

[lbrown1618]

Well.....you could (in my most sneaky voice) charge $5 a month and pay off $4...leaving $1 balance. Therefore not paying it it "full" and still having "activity". I have an emergency card and if my bank starts doing that, I will do something like this to keep it active.

Complete crap!

This is probably what they are hoping ppl will do. The majority of the population cannot control their spending and will end up putting more than that $5 on there...and it grows and grows.

At any rate, I did find a couple articles online and it says "customers who have (past tense)" paid off each month and/or never paid late fees....so I believe they might be looking at your history with them...not how you treat your card now. So Charging $5/m and paying off $4 of it might not get you out of it. I dunno, we'll have to wait and see how they handle it I guess.

[joshmamabear]

If this is true and they decide to implement it (haven't heard Discover is doing it but if they do, sayonara!) this new rule will not hurt those who pay their balance in full or have not paid annual dues for the card. They better think twice before doing that BECAUSE the fact remains, these CC companies still make $$ off the merchants by at least 1.6 to 2 percent per swipe of the card. They may not be making money off people who pay their balance in full but they are making $$ off purchases they run through their card. That amounts to millions from several merchants/utility companies if they scr3w customers paying on time and/or paying their balance in full. Their choice. Those who do not carry a balance don't really need to use CC anyway. Most just use them for the perks but if the perks dry up and there's no use for them, these group of consumers can easily find other means to save.

[foggierbard9]

This is in response to the gov't telling credit card companies that next year they can't raise rates and the like as easily as they can now.

Whether it is fair/right or not they are in the business of making money and this is one way to continue to ensure their profits.

New Credit Laws 2009

[cintinative]

I found this but it doesn't talk about a fee for paying on time. I am not sure what the source of that info is--if the OP has a link, please post. TIA!

Credit card issuers pile on new fees - USATODAY.com

[cintinative]

Okay, here's something about that Citigroup fee. I am really unhappy about this.

Pay Credit Card on Time, Pay Extra Fee | News10.net | Sacramento, California | Local News#