September 20, 2010
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News: Credit Cardholder Beware
Before you get too comfortable with your credit card company believing that new card reform will prevent it from pulling more tricks on you, read how some lenders are finding loopholes or deceptive tricks to get your money. Although the new credit card legislation will save cardholders millions of dollars, many cardholders will find some tricky and unusual fees on their card statements; after all, banks are in business to generate earnings and please stockholders. A recent reporting from 3 On Your Side said that according to Ed Mierzwinski, of the U.S. Public Interest Research Group, cardholders need to pay attention and understand that doing business with the credit card industry is a tricky game.
One increasing growing concern by some credit cardholders that travel overseas are the unpredictable foreign currency exchange fees. Not only have cardholders traveling overseas been hit with unsuspecting fees, but consumers in the U.S. making purchases over the internet from overseas businesses are also being hit with some new and unusual fees. Those so called "convenience checks" have also caused cardholders some headaches. Consumers should understand that typically these credit card checks come with a higher interest rate and fees, not to mention that the lender is not bound to honor them. Furthermore, if one of these checks put your account over the credit limit, it will generate additional fees and penalties. The best solution, call your lender to clarify terms and ensure the check will clear prior to writing one.
Lenders continue to seek out new ways to generate income. In addition to the above mentioned fees, balance transfer fees and annual fees are also on the rise. Payment delinquencies can cause you to lose your rewards points with some lenders who are charging fees to have rewards reinstated. And some lenders have added a fee to cash in on those rewards. So what's a credit cardholder to do? Everyone tells me…..if you don't like it, find another bank.