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Consumers will have to watch out for new fees this New Year

Wednesday, January 26, 2011

A New Year has just begun; consumers will now have to keep a close watch on fees. Some fees are quite obvious, however there are some that one might easily overlook.

The obvious fees:

• According to the Dodd-Frank financial overhaul bill, there are limits on the fees that the banks can charge on debit card transactions. Hence, there will be new fees on banking services, as well as on debit cards.
• Annual fees on debit cards will rise because issuers recuperate lost fees on previous transactions.
• There will certainly be a hike in interest rates. Issuers will think of various ways to earn the lost revenue back. Fees will come in various forms this year.
• Payment protection plan offers some benefits like suspending minimum payments, if you are out of work. Charges could range from 87 cents to 95 cents on each dollar.
• Issuers are enforcing a paperless statement and will be charging a fee to customers whom haven't opted for this.

Subtle fees:

• Rewards programs and offers now has more conditions.
• Basic rewards programs will be revised.
• Reinstatement fees will be charged for late payments.