Someone correct me if I'm wrong, but weren't laws changed a few years ago which paved the way for this sort of thing?

How about people learn some responsibility and not be late or go into overdraft on their CC?

Charge them even MORE and pass the savings on to those that pay their bills in the form of lower interest charges.

Ben: In a word, "Yes".

Considering U.S. personal savings have declined from 5% in 1994 to -.03% in 2005 as well as the amount of bankruptcy filings increasing from .78 million in 1994 to 1.6 million in 2004 I would have to say the answer is a resounding yes.

@ColinColin: In a way they have... Some 10 years ago, cash back on credit cards was unusual, limited to Discover. Now I get 1.5% unlimited cash back on everything is a very nice reward for paying my bills in full, on time. Even Discover's upscale card had cash-back limits on it.

Don't banks make a ton of money off of us anyway? Why not keep jacking up the fees? People will just keep paying them.

Yeah, well if I hadnt been laid off 5 times in my life already (I am only 31), maybe things would be a little easier. Its great to know my CEO made a $4 Million bonus by making sure I didnt have a job. How many employees could have been kept on for that $4 Million I wonder?

don't worry: the credit card companies said the bankruptcy law will lower all these fees. they wouldn't lie

Penalty fees have gone up, but at the same time interest rates and membership fees have gone down. It is a trade-off.

Interest rates are a reflection of the risk that you will pay late or go over your limit. The fees are a punishment for when you actually pay late or go over your limit. If they cut fees, they would have to simultaneously increase interest rates to maintain the same level of risk.

What I object to is when they apply fees in error, or delay crediting your payment, or introduce hidden fees. But that is just them being dishonest, which is an entirely different problem.

Some people are just not getting the point. Yes, people make mistakes, but if we have a financial system rigged to profit off those mistakes what kind of a world are we living in?

washington should've piggybacked legislation to tighten up exorbitant fees in w/ that wonderful bankruptcy law that went into effect not too long ago. now they can charge whatever they want and they don't have to worry about you skipping out on it under chapter 7 (as long as you have income).

Are Americans really just getting that much riskier as borrowers that lenders have to tighten the screws so much?

No, companies are getting greedier. The greed rate is independent of the inflation rate. They have effectively made the switch to a fee based system. Its the same with short-term loans, you make your money on the fees not on the interest.

And I hate to be a stickler, but the 1994 rates were doubled by 1999 (5 years). Those 2005 numbers are closer to a trifecta.

"We're no economist, but that doesn't seem to keep pace with inflation."

It's not supposed to keep pace with inflation, it's supposed to keep pace with the number of nimrods who don't pay their bills, which is increasing quickly. Is that the fault of the credit card companies? Do we need the gov't to step in and protect us from the big bad companies who proffer the option of deferred payment?

Companies getting greedier? Give me a break...they're not in it for your platitudes.

I just got dinged $39 from my MC for being late... OUCH!!

Guess I better go back to paying for stuff with cash now. Or just stop shopping... Hey!