NEW YORK (CNNMoney.com) -- Bank fees: They're like a game of Whac-a-Mole. The minute one set is banned, a whole new set pops up.
In August, the Card Act banned a variety of fees -- including certain overdraft and excessive late charges.
But one month later, banks are increasing existing fees and finding creative new ways to charge customers more for credit cards, so-called "free" checking accounts and banking services.
Already this year cash-advance fees and balance transfer fees have risen to 4%, up from 3% in July last year, according to a study conducted by the Pew Health Group's Safe Credit Cards Project.
"It's like you've got a sinking boat, where you plug one hole and another one springs up," said Curtis Arnold, founder of CreditRatings.com. "You can shut down one egregious fee, but that doesn't mean other fees aren't just going to start popping up elsewhere."
Here's a bank-by-bank look of what to expect.
GO HERE to read more.
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Just avoid the banks with the most fees and modify behaviour to escape the fees (i.e. no balance transfers or overdrafts). They are victimizing those who often aren't handling their money well in the first place. Is this you?
ReplyDeleteThis is what you get when the government tries to regulate any industry. The free market keeps innovating the end runs necessary to keep making a profit.
ReplyDelete10:51...I think you could be part of the problem...."balance transfers" ??? LOL! You mean people who have two or more accounts?? Oh yeah--- I know a LOT of people that have THAT! MOST fees are from bounced checks and the banks do EVERYTHING they can to make THAT happen to an account. From posting deposits two-three days AFTER the actual deposits to putting "holds" on checks (even though with federal electronic transfers, checks are cleared in 24 hrs or less), banks purposely create these fees whenever possible...it's EXTREMELY lucrative. But I do agree you used the proper verb --- "victimizing". On the other hand, I don't know how many unemployed, under-employed, low income, single parents, or elderly fixed income people would like to be lectured by the high and mighty on how to handle their limited (and sometimes insufficient) income....as in "I have a great job, or "my family is well-to-do", or "my husband (or wife) makes GREAT money so all I have to do is stay at home and write the checks --occasionally transfer money from my CD or investment account, which is SUCH a bother"...why can't the rest of you poor souls do as well as ME???? feeling me yet? AND, the banks are doing this at the same time they have their hand out to the taxpayers for BILLIONS in bailouts and also pay .5% on savings while they loan it out at 14-24%....what genius is running these banks that they need billions to save them from bad business decisions, while, by their own admission, they make BILLIONS on these "fees" alone.
ReplyDelete300pm, you have no clue who you're talking to. I've scrimped and scraped in school for ten years to get the little I have now. It's because of that experience that I have enough sense (and barely enough cents) to balance my check book and I avoid cash withdrawals on credit. Unfortunately poor people are often sent to the poor house because of circumstances not of their own making (disease, injury, lay offs, born into it). But it's often bad decisions that keep them there.
ReplyDelete3:32 It was your "is this you?" question that had the tone of the self-righteous in it. You went to school for 10 years (!!)? Sorry for any offense, but going to school for 10 yrs and not needing your inheritance, or your family's money, or your spouse's income, well THAT is exceptional. Congratulations. Its a lot like a pro athelete saaying to us "I did it, why don't you?" WHY?? Because its not that easy and everyone CAN'T do it...That's all I was trying to say....
ReplyDeletelive within your means
ReplyDelete