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FEEd me...FEEd me!....credit card companies adding another FEE.....
Posted by: NewtonMP2100
Date: November 18, 2009 03:00PM
....yeah another fee....if you are late even once.....


Another credit card fee is about to fly

....Another fee is coming in the new year for airline and hotel customers — this time from your credit card company.

The message: Pay your bill on time or forfeit the miles or points you thought you earned for making purchases on your card during that month.

To get the rewards back, it's going to cost you.


American Express Co. is sending notices to customers who hold its cobranded cards with Delta Air Lines, JetBlue, Hilton Hotels and Starwood Hotels, that beginning in January rewards won't be transferred to loyalty accounts with those partners if you are late paying your bill.

You'll be hit with a $29 reinstatement fee if you want the rewards back. That fee is on top of the late-payment fee — $19 or $38 depending on your balance. A penalty interest rate, currently 27 percent, would be assessed on future balances.

American Express is changing the policy for its cobranded cards to align those cards with its other Amex cards that have carried the same policy for months or years.

The policy doesn't just affect the habitual late payer, it affects everyone, said John Ulzheimer, president of educational services for Credit.com. "I think over the course of time, people miss a payment at least once because of unforeseen circumstances like something getting lost in the mail or a long vacation taking your focus off making your payments," he said.

Other card issuers, like Citigroup Inc. and JP Morgan Chase & Co., also have cobranded credit cards with airlines and hotels. Citi is paired with American Airlines. Chase is paired with United Airlines and Marriott International Inc.

Citi spokesman Mark Rodgers said points earned on the company's Citi cards that offer rewards through the company's own rewards program may not be available for redemption if a card holder pays late one month, and in some cases a fee for reinstatement may apply. Rodgers said Citi is not considering reinstatement fees for its cobranded cards with American Airlines and Hilton.

JP Morgan Chase spokeswoman Tanya Madison said that if an account is past due for the cobranded United card, a customer will not earn miles until the account is paid. "While we do not go back and confiscate miles, we will stop awarding miles on spend going forward until the account's paid in full," Madison said.

Consumer advocates aren't surprised by American Express' move considering tough new rules for credit card companies scheduled to go into effect in February. Under the new law, lenders won't be able to increase rates on existing balances unless a person is more than 60 days behind on a payment.

"Essentially if you can't charge one fee, you create a new fee," Ulzheimer said.

Banks deny that they are increasing rates ahead of the February deadline and blame fee increases on the economic downturn. American Express isn't saying how much revenue it expects to generate from the new reward reinstatement fee for cobranded cards....



oy vey.....!



_____________________________________

I reject your reality and substitute my own!



Edited 2 time(s). Last edit at 11/18/2009 03:08PM by NewtonMP2100.
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Re: FEEd me...FEEd me!....credit card companies adding another FEE.....
Posted by: spacescape
Date: November 18, 2009 03:26PM
F*** the credit card companies!!! I'm about ready to move 100% of my $$$ to my credit union. Chase has "so far" been fair to me and I believe my rate is still under 10%... Citi went from 6.99% to 19.99% and might of even went higher... Citi gets paid off every month and so has Chase... Use Citi to pay all my bills and write one check a month...

nether of them make a dime off of me.

Get this, my 12 months same as cash heating / cooling charge card went from 24.99% to 29.99% on new purchases. We don't have to pay it off until July 2010 so we are plowing forward to pay it off...

they won't make a dime off me either.

About ready to shop for a card to replace Citi then call them up and tell them to "f-off". The best thing I did was pay them all off.
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Re: FEEd me...FEEd me!....credit card companies adding another FEE.....
Posted by: tronnei
Date: November 18, 2009 03:40PM
Quote
spacescape
nether of them make a dime off of me.

Then why so angry?
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Re: FEEd me...FEEd me!....credit card companies adding another FEE.....
Posted by: weapon
Date: November 18, 2009 03:45PM
Here is a thought: Don't miss your minimum payment.

The credit card company never gets extra money out of me since I have an automated billpay for the min every month. That way if I forget, I am covered. Then I just send a second payment to cover all I originally wanted to pay.

Easy.
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Re: FEEd me...FEEd me!....credit card companies adding another FEE.....
Posted by: spacescape
Date: November 18, 2009 03:46PM
Quote
tronnei
Quote
spacescape
nether of them make a dime off of me.

Then why so angry?

Because they are screwing lots of people I know ... And lots of good people I don't know ...

I know someone that never had credit card debt. However, he was diagnosed with cancer and now has $88K worth of debt now. The bank moved his interest from like 7 or 8% to 20%... They moved it back below 10% but still he's pretty screwed for awhile.
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Re: FEEd me...FEEd me!....credit card companies adding another FEE.....
Posted by: spacescape
Date: November 18, 2009 03:52PM
Quote
weapon
Here is a thought: Don't miss your minimum payment.

The credit card company never gets extra money out of me since I have an automated billpay for the min every month. That way if I forget, I am covered. Then I just send a second payment to cover all I originally wanted to pay.

Easy.

This is a "good" piece of advice... Especially for busy people.
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Re: FEEd me...FEEd me!....credit card companies adding another FEE.....
Posted by: bazookaman
Date: November 18, 2009 03:55PM
Reminds me of Goodfellas...

Now the guy's got Citi as a partner. Any problems, he goes to Citi. Trouble with the bill? He can go to Citi. Trouble with the cops, deliveries, he can call Citi. But now the guy's gotta come up with Citi's money every month no matter what. Business bad? F#@k you, pay me. Oh, you had a fire? F#@k you, pay me. Place got hit by lightning huh? F#@k you, pay me.



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Re: FEEd me...FEEd me!....credit card companies adding another FEE.....
Posted by: Fritz
Date: November 18, 2009 04:04PM
Quote
The credit card company never gets extra money out of me since I have an automated billpay for the min every month.

And that prevents them from billing late fees or interest as long as ...... what?
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Re: FEEd me...FEEd me!....credit card companies adding another FEE.....
Posted by: S.Taylor
Date: November 18, 2009 05:07PM
Quote
weapon
The credit card company never gets extra money out of me since I have an automated billpay for the min every month. That way if I forget, I am covered. Then I just send a second payment to cover all I originally wanted to pay.

Easy.

I've tried that too and on multiple different occasions, with different cards, they have either increased the minimum payment or changed the date it was due, leaving me with increased interest rates and late-payment fees. You absolutely *must* keep an eye on every bill that comes in and make sure they're not pulling a fast one on you.

Not so easy.



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Re: FEEd me...FEEd me!....credit card companies adding another FEE.....
Posted by: Doc
Date: November 18, 2009 05:40PM
Quote
S.Taylor
I've tried that too and on multiple different occasions, with different cards, they have either increased the minimum payment or changed the date it was due, leaving me with increased interest rates and late-payment fees. You absolutely *must* keep an eye on every bill that comes in and make sure they're not pulling a fast one on you.

...Or you could set up the automated payment to be more that the expected minimum. For example, set the payment to $100 and unless you've got a really huge debt that amount is gonna more than cover the minimum payment even if they raise it. If $100 doesn't cover your minimum, you need SERIOUS debt counseling.
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Re: FEEd me...FEEd me!....credit card companies adding another FEE.....
Posted by: S.Taylor
Date: November 18, 2009 06:23PM
All I'm sayin' is you have to be careful with the autopay and don't be too confident, because they're sneaky bastiches who will screw you any way they can.



This remote controlled tree is a must for the person who wants to be on the cutting edge of Christmas technology.
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Re: FEEd me...FEEd me!....credit card companies adding another FEE.....
Posted by: Michael
Date: November 18, 2009 08:34PM
Quote
S.Taylor
Quote
weapon
The credit card company never gets extra money out of me since I have an automated billpay for the min every month. That way if I forget, I am covered. Then I just send a second payment to cover all I originally wanted to pay.

Easy.

I've tried that too and on multiple different occasions, with different cards, they have either increased the minimum payment or changed the date it was due, leaving me with increased interest rates and late-payment fees. You absolutely *must* keep an eye on every bill that comes in and make sure they're not pulling a fast one on you.

Not so easy.

I've done what weapon has done with Doc's modification and beat S.Taylor's problem by having a standard monthly payment that is substantially more than any minimum payment and having it scheduled to be sent electronically a week before the bill has historically been due. When the bill comes I change the amount and send date.

I've had cc companies change due dates on me, as well. They either did it without notice or with some hidden notice somewhere that I didn't see. So far I've been able to stay one step ahead of them, but I'm busy knocking on wood. It'll probably get harder as time goes on.
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Re: FEEd me...FEEd me!....credit card companies adding another FEE.....
Posted by: Don C
Date: November 18, 2009 09:32PM
AmExpress just sent a note that says, if I remember correctly, that they payments will go to paying off the highest interest loans first but that they can change the rate any time the want, including retroactively.

I don't use this card an more (cash back as a credit once a year) and am seriously thinking of canceling it. I am not the least bit worried about what it would do to my credit number since I am not taking out any loans these days.
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Re: FEEd me...FEEd me!....credit card companies adding another FEE.....
Posted by: JoeH
Date: November 19, 2009 12:09AM
Quote
Don C
AmExpress just sent a note that says, if I remember correctly, that they payments will go to paying off the highest interest loans first but that they can change the rate any time the want, including retroactively.

I don't use this card an more (cash back as a credit once a year) and am seriously thinking of canceling it. I am not the least bit worried about what it would do to my credit number since I am not taking out any loans these days.

Most cards when they have sent that type of notice out, it has been that payments would be applied to the lowest interest rate balance first.
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