November 12, 2009
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How CC Companies Are Exhausting Americans, Pt.4
Deceiving definitions and diligence.Some credit card lenders have changed the definition of terms and conditions in order to collect more in fees. One example is the “international” fee. The average consumer would interpret an international fee as one that would pertain to the exchange rate when making purchases in foreign currency. Wrong. An international fee pertains to any purchase made in a foreign country even if the purchase was made in U.S. dollars. Fees attached to credit card spending overseas are difficult to understand and not easily calculated by the average traveler. Tourists are often caught by surprise when they receive their credit card statements after returning home to find that their bargain purchase has cost them double or triple the original cost. Consumers can protect themselves by talking to their lender's customer service representative for a detailed explanation on the fees that apply to international purchases.
Although the new credit card legislation requires lenders to write account contract terms and conditions in clear and simple language, it will remain difficult for consumers to fully comprehend all the responsibilities attached to managing a credit card. You can offset your risks by remaining diligent in monitoring your account status and thoroughly examining your account statement. You can avoid unnecessary fees by paying your bill on time, reading the fine print of all balance transfer offers, paying close attention to your available credit to avoid going over your limit, and closely evaluate what those rewards are really costing you.
Most importantly, do not avoid opening mail from your banks and lenders. Open all mail and read it over carefully. If you do not completely understand the message, call you lender and ask them to explain so that you are comfortable with what it says. Doing all of these things can help you avoid trouble and costly fees, but nothing will serve you better than by simply not using your credit card. The best advice is: use debit or cash.