Do you have flawless credit? Do you pay off your credit card balances in full and on time every month? Watch out, you could get "mugged" by your bank.
CBS TV 2 in New York reports that Bank of America and Citigroup are considering annual fees of $29 to $99 per year for credit cardholders who pay off their balances every month in full and on time:
"Bank of America started notifying customers that they will be charged a new annual fee of $29 to $99... Bank of America said in a statement: "At this point we're testing the fee on a very small number of accounts and haven't made any final decisions." Citigroup is also trying out an annual fee with some card holders, and analysts expect more banks to follow their lead. The banks are starting to charge fees to reliable customers in response to a slew of new credit card industry regulations that will limit when banks can hike interest rates."
Consumers who don't accept the higher annual fees must close their credit card account and shop around for a new credit card at another bank.
I find the arrogance of this astounding. If the bank is serious about testing consumer reaction, all they need to do is read the comments by readers on prior I've Been Mugged blog posts about the higher interest rates announced back in February. The banks must be desperate for revenue to cover poor decisions they made about bad debts and risky investments.