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General discussion

Credit card companies say they are raising fees

Feb 3, 2004 3:47AM PST
Here's another good reason to pay your bills on time, credit card companies are hiking late fees.

CARRIE LEE, CNN FINANCIAL NEWS CORRESPONDENT: Some of these fees, Carol, seem very unbelievable. Let me start with MBNA, which is the second largest credit card issuer, has raised its top late payment fee to $49 for certain customers. This, according to CardWeb.com. That's going to be charged to some of MBNA's Gold Option program.

And also Chase, starting on March 1, Chase credit card customers who want to pay their bill by phone are going to pay $14.95. That's up almost $3 from the prior fee. Also, if you want to transfer from one Chase card to another, transfer your balance, that's going to cost $70 from a previous $50 cap.


http://www.cnn.com/TRANSCRIPTS/0402/03/lad.04.html

Angeline
click here to email semods4@yahoo.com

Discussion is locked

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And they're all still calling begging you to transfer other balences to their card
Feb 3, 2004 3:58AM PST

Of course, sometimes the offer is tempting.

I've got a pretty good offer to transfer balence recently, good as long as I pay off before Jan 1, 2005, then it sky rockets.

I get at least one offer in the mail every week. Before the do not call list I got a phone call or more every week. Annoying ain't it.

BTW, just in case anyone throwing them away unopen, I highly recommend you shred any applicatons preprinted with your name and address. Otherwise, someone might return it with an 'address correction' and it might be months before you find out someone has run up huge debt in your name. I've gotten to the point I shred anything that has more than my name and address on it.

roger

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Late fees are an incredible rip off!
Feb 3, 2004 4:45AM PST

That's the first thing I look for when I get a CC offer. If its got a late fee, I toss it. Fortunately, my CC does not charge late fees, so I have the luxury of tossing others. I did recently accept a Sam's club card which charges late fees because it's darn convenient in Sam's and saves substantial money on gasoline. However, we're careful to pay that bill on time.

Believe it or not, Banking schools actually discuss products were the price can be jacked up without losing business. An example is a NSF check which can be very expensive. ATMs are another. They were brought in to lower teller costs and they succeeded. With that savings digested, the banks naturally began to charge for ATM transactions. I still refuse to pay ATM fees unless I have no other choice.

A lot of this kind of stuff really is a ripoff.

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Re: Late fees are an incredible rip off!
Feb 3, 2004 12:49PM PST

Hi, KP.

I've never heard of a CC with no late fee!

-- Dave K, Speakeasy Moderator
click here to email semods4@yahoo.com

The opinions expressed above are my own,
and do not necessarily reflect those of CNET!

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I have one, but unfortunately
Feb 3, 2004 1:36PM PST

it is from USAA which is restricted to current or former military officers and their families. A great company, but, as I said, restricted.

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Re:Re: Late fees are an incredible rip off!
Feb 3, 2004 1:50PM PST

The late fee bit is why I have Quicken set up to auto record a check to be printed every 4 weeks for a minimum amount.

If have the monthly bill at the time, is fine, modify for balence, or portion I intend to pay that month. If don't have bill yet, I mail the small payment anyway, and mail another check when I get the bill. Never more than 4 weeks between payments, so no late payments.

Even more important with a low rate advance offer. Most of time you have one late payment and the rate skyrockets to 20% or more.