Posts Tagged 'charge'

Citi adds $60 annual fee

Citi's annual fee

Bad news if you’re a Citi credit card customer, says Connecticut Watchdog:

Many Citi cardholders are receiving letters about a $60 annual fee that is being added to their account effective April 1, 2010. If consumers make $2,400 in purchases during the year, then the annual fee will be credited back to their account.

It appears that Citi’s test of adding an annual fee to a small percentage of their customers in August of 2009 proved successful for the issuer. At that time, Citi began charging some cardholders an annual fee of $30 to $90 unless they spent at least $2,400 per year. Now a far greater number of customers are receiving this notice.

A representative from Citi says they’re imposing the hefty annual fee to “maintain the quality of our service amid the rising cost of doing business.”

So they mess up the economy, and you pay. Get it?

I first saw this on a Simple Dollar post, where a long-time Citi customer got the same letter, despite his years of loyalty. You can read the full letter at the Consumerist blog.

Is that any way to treat your customers?

We treat our members a little differently. To get our perspective, visit WeUnderstand.org and let us know what YOU think of all this annual fee nonsense.

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Exposed: American Express raises fees

amexfees

One of our employees here at the credit union received this letter from American Express informing them that – guess what? – AmEx is raising rates and fees.

Big surprise, right? We’ve seen this before.

AmEx calls it a “price change notification,” which translates as “you’re going to pay more to use an American Express card.” For example, our American 1 employee will pay prime rate plus 21.99% APR on any cash advances, which – as of today – equals 25.24%. Here at American 1, our cash advance rate is the same as our everyday Visa rate.

This letter is another example of big bank credit card companies raising their fees and interest rates to bail themselves out of the mess they got themselves into. And you pay the price for their mistakes.

For more information on big bank credit cards, visit our Top Secret Visa site.

Tip of the day: Sign up for e-statements, get free Bill pay

billpaylogo

You probably know that when you sign up for American 1’s e-statement service, you can take advantage of our online Bill Pay services for no charge.

Some members, however, have noticed that they still get charged for using Bill Pay after signing up for e-statements.

Here’s the fix: after you sign up for e-statements, log on to our A1@home home banking system, and then head to the Bill Pay area. Bill Pay recognizes that you are enrolled in the system and stops the monthly fee.

The issue seems to be with members who rarely use Bill Pay. Regular Bill Pay users never recieve a charge; it’s only members who haven’t used the system that seem to get charged.

So remember: after signing up for e-statements, immediately head to the Bill Pay site, and everything should be automatic. Check out our Bill Pay page for instructions on how to get set up.