Historically, credit card companies have been known for their high costs and hidden fees, and before the Credit CARD Act was passed many consumers were negatively impacted by the viciousness of some of these companies. The Credit CARD act was passed to help protect consumers, but there are still some unexpected fees that you need to avoid.
Credit Card Fees to Watch For
Even though certain types of fees are not allowed according to the Credit CARD Act, there are still sneaky ways that the credit card companies try to get your money. Some of these fees include: high activation fees, credit card insurance, and annual fees.
Even though the Credit CARD Act prohibits certain types of fees, some companies have renamed and/or restructured fees that they previously had. For example, even though initial credit card fees are limited, some companies have skirted around the rules by applying the fee before the credit card is activated. So, the activation fee needs to be paid out of pocket by the consumer, and it cannot be applied to the beginning balance of the card.
How to Avoid Credit Card Fees
The only way to avoid paying these fees is by cautiously researching any credit card offer that you are considering. You may even talk with a Minneapolis bankruptcy attorney to get advice on the legal implications of the credit card agreement. By reading the fine print, you can avoid unexpected high fees.
If you find yourself in a situation where high fees have been applied to your account, the best option is to work with a Minnesota bankruptcy attorney in order to explore the legal options that are available. They will be familiar with the law, and can look through the details of your credit card agreement to be sure that they are compliant with the Credit CARD Act.
- All you Need to Know about Credit Card Bankruptcy (debt-consolidation-2u.com)
- Avoiding Tax Preparer Scams (goarticles.com)