Bank fees: They’re like a game of Whac-a-Mole. The minute one set is banned, a whole new set pops up.
In August, the Card Act banned a variety of fees — including certain overdraft and excessive late charges. But one month later, banks are increasing existing fees and finding creative new ways to charge customers more for credit cards, so-called “free” checking accounts and banking services.
Already this year cash-advance fees and balance transfer fees have risen to 4%, up from 3% in July last year, according to a study conducted by the Pew Health Group’s Safe Credit Cards Project.
“It’s like you’ve got a sinking boat, where you plug one hole and another one springs up,” said Curtis Arnold, founder of CreditRatings.com. “You can shut down one egregious fee, but that doesn’t mean other fees aren’t just going to start popping up elsewhere.”
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Article courtesy money.cnn.com