December 08, 2009
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News: CC Companies Charging For Zero Balance
It used to be that you were considered a valued credit card customer by your lender when you maintained a zero balance on your account. You were a responsible individual who managed your finances well and a plus credit risk. Those days are gone forever. Credit card companies don't make money off of customers who don't use their cards or pay the balance in full each month. A new practice has evolved in the financial industry that punishes customers who just that. Some lenders have also begun charging card account fees for not spending enough. It is unlikely that any credit cardholder regardless of how much they spend or don't spend will be paying higher fees and penalties. American Association of Retired Persons (AARP) a United States non-government organization and interest group reported the following statistics:
• Beginning in June, the Fifth Third Bancorp began charging credit cardholders a $19 fee per month if there was no activity on the account.
• Citigroup has begun charging an annual fee to any credit cardholder who has not accumulated more than $2,400 in transactions over a one year period.
• Bank of America is expected to begin charging a nominal fee to a select group of credit cardholder an annual fee ranging from $29 to $99 if they do not retain a monthly balance.
The credit card companies have suffered record breaking losses and have recently begun to see profits beginning to grow. These giant Wall Street organizations have been used to experiencing large profits with top executives realizing huge bonuses at the expense of shareholders. During the recession, many companies have watch profits decline. Now that the economy is beginning to grow once again, these same companies that borrowed taxpayers money to bail themselves out of poor management decisions want their money. Their motto has become….use it or lose it. Your lose will always be their gain.