There have been decisions by the federal government to change regulations pertaining to banks and credit cards it has not resulted in them increasing the rates and fees on services.
Although many new rules have been brought about by the new act in 2009 of credit card accountability responsibility and disclosure there is continued increase in the costs by various companies. Industry exert Bill Hardekopf says this has been largely due to a need to make for the dip in consumer spending that has been there recently.
Hardekopf who is the CEO of a consumer website was heard saying that many people misunderstood the terms of the act. They took it to mean that interest rates would stay fixed, which was however not the case.
Based on the study of over a thousand credit cards, it has been found that the average rate of interest is about 13.64 percent, is what Hardekopf went on to say.
The rate of interest previously stood at 12.1 percent about twelve months ago and this increased to 13.25 percent in just a span of six months from then. While the state of affairs with interest rates remains rather indecisive companies continue to introduce additional incentives for the customers to encourage spending. But following the turn of events, card issuers are also choosier about who gets what.
According to low cards.com these are some of the changes that have been implemented in this year.
In case of capital one the No Hassle Cash rewards have been hikedup from 16.9 percent to 17.9 percent, and the Classic platinum card offered by the same firm has seen a similar one percent increase.
Citi has made a bigger change wherein the cash advance APR is now 25.24 percent from its earlier 21.99 percent.
Increases in fees
Discover has hiked up the fee on cash advances by 5 percent in case of minimum of $10 and in a $5 minimum there has been an increase of 3 percent.
In case of Bank of America there has been an additional annual fee tacked up which depending on the card could be between $29 and $99.
Citi has also added on in the balance transfer fee with an increase from 3 percent to 4 percent and cash advances will have a fee increase from the previous 3 percent to 5 percent. There will also be additional annual fees of about $60 for certain accounts.
Wells Fargo and HSBC will no longer be providing checking accounts for free.