New laws and rules affecting banks and credit card issuers go into effect soon, depriving them of their badly needed profits. Since sudden rate hikes and cascading overdraft fees are soon to be things of the past, bankers are busy formulating creative new fees. Here’s what you have to look forward to in the new year.
World Financial Network National Bank, an issuer of store cards for retailers such as Victoria’s Secret, Gander Mountain, and Talbots, is introducing a $1 fee for paper statements, and blames the constraints of the CARD act for the new fee.
“One requirement of the Credit Card Act of 2009 is that monthly billing statements will now have to include significantly more information pertaining to the cardholder’s terms and conditions, thus increasing the amount of paper, production and postal expenses as well as having a greater environmental impact,” the company said in a written statement.
In addition to sneaky new fees, consumers can also look forward to the phasing out of free checking at some banks.
Banks Roll Out New Check, Card Fees [Wall Street Journal]