The feds hit the credit card and banking industry with some of the most dramatic and sweeping reforms in history this year. Consumers are supposed to save millions from new rules limiting certain fees and interest rate increases.
But we know banks are in the business to make money so what new fees should you expect to see in future statements?
Just when you thought it was safe to use your credit card again, experts say watch out, banks are now charging higher fees on things they still can and adding fees in some cases.
"Dealing with the credit card companies is like playing whack a mole and they're constantly looking for new tricks, says" Ed Mierzwinski with the National Association of State Public Interest Research Groups.
"Consumers are definitely not out of the woods with respect to banks charging them fees," says John Ulzheimer with
credit.com.
Karen Mallia was shocked. She got hit with a foreign transaction fee and she never left the country.
"I was like, 'Oh my gosh'. I had no idea," says Mallia.
She paid about $800 to register for a conference in London. Her statement showed up with a fee of more than $25, all because a foreign bank was involved in the deal.
Foreign transaction fees are still allowed under the new law. But consumer groups say the amount some credit card companies are charging is on the rise.
The banking industry claims these fees are necessary to allow them to lend you money.
"At the end of the day any business including the credit card business, their revenue has to exceed expenses or they go out of business," says Nessa Feddis with the American Bankers Association.
The banks say new reform rules, like “The Card Act" crippled their income. And now industry insiders admit they're on the hunt for new revenue -- from you.
"That income has to be made up someplace else,” says Feddis. “So what they're doing is experimenting with a new business model looking at interest rates, looking at different fees and experimenting."
What other credit card fees should you be on the lookout for?
- Balance transfer fees
- Cash advance fees
- Annual fees
If you've got a reward card and miss a payment, you may lose your reward points and have to cough up the payment plus up to $100 to reinstate those points.
Some banks are now charging administration fees of up to fifty bucks to redeem awards even if you pay your bill on time.
And watch out for paper statements, they could set you back up to $9 a month.
"If you bank charges you for receiving a monthly statement get a new bank," advises Mierzwinski.
That's something the banking industry and consumer advocates agree on. If you think your credit card is charging you too much and it won't budge on its fees, shop around for a new one.
"If a consumer does not like the way they're being treated they have got to take their money elsewhere," says Ulzheimer.
The American Bankers Association says the new rules prohibit credit card companies from charging inactivity fees, but banks can close your account for inactivity or lower your credit limit.
They also point out that banks have to tell you up front about all fee increases and new fees, so read those little pamphlets you get in the mail!
