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Although many lenders aren't adding fees, debt management plan may help with interest rate increases
04/25/2010
Many experts warned that credit card debt companies would add additional fees to accounts to make up for income losses associated with the Credit Card Accountability, Responsibility and Disclosure Act.
However, a recent survey from Bankrate.com shows that most of these companies have not added additional charges, such as inactivity and annual fees. Of the 50 lending institutions examined by the website, no credit union had added inactivity fees, and only three banks did so.
The site noted that the Federal Reserve Board may issue rules that ban or rope in inactivity fees in the latter half of 2010 as part of its implementation of the Credit CARD Act. However, card companies may still opt to close credit cards if they aren't used.
"Use cards you don't want to see closed at least once a quarter," the report said.
Bankrate looked at 73 different cards in its poll, and found that only five had annual fees. The survey also showed that some card companies are getting rid of over-the-limit fees.
Though consumers may not be facing additional fees, the Credit CARD Act did prompt issuers to increase interest rates. Consumers who find that these increases are making it difficult to pay off debt may consider a debt management plan, which can help decrease rates.
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