TWO credit card companies have been exposed after quietly charging $1.99 for a normal request – but there’s a trick to avoid it.
A new push to move credit card users to a digital statement will now incur a penalty for those who don’t want to comply.
A new push to move credit card users to a digital statement will now incur a penalty[/caption]
But a fee of $1.99 has been rolled out if you have opted for receiving paper statements.
One big name doing so is Synchrony Bank who have co-branded and store-affiliated credit cards with over a shocking 100 cards.
These include Sam’s Club Credit Card, the Lowe’s Store Card and Amazon Store Card.
Towards the end of last year, Citibank released new guidance to customers saying that going paperless was “required” in order to “access your account on Citi.com and the Citi Mobile App”.
While there isn’t a law banning paper statements, permission is required to begin paperless billing.
Alicia Galowitsch told NBC that the charge began to add up for her and her family.
She said: “It’s very tight. It’s very tight to where we had to start going to a food bank.
“It’s going to be $11.94.”
The pair have a few credit cards and receive statements in order to keep organized.
Ms Galowitsch added: “If I’m not here, the payments are going to be late because Mark’s not going to know what to do.
“With paper statements, everything is written down for him.”
Other concerns among furious customers include not being tech-savvy enough to use online banking, and also that keeping things paperless can pose security threats.
Credit card users have taken to social media Reddit to express their anger about the fee.
One user warned: “I have the Paypal mastercard and got a letter in the mail today. Beginning in April they will start charging if you are not using electronic statements.
“It is a small fee of $2.50 but still just a heads up if anyone has any cards by them may want to check.”
Another said they were “closing [their] account” over the fee.
It comes after Visa and AmEx made subtle changes to the way you redeem rewards – and your points are losing value.
Americans have amassed millions of credit card points to be used on airplane tickets, hotels or converted to cash.
But the value of credit card points has fallen in the past few years due to inflation.
A credit card point gained through online banking was previously worth about one cent, according to the card issuers.
However, one cent has lost about 20% of its purchasing power since 2018, according to the Bureau of Labor Statistics.
SIGNS YOUR CREDIT HAS BEEN COMPROMISED
Here are signs your credit has been compromised:
Recognizing the early signs of identity theft is essential.
Michael Bruemmer, vice president of Experian Global Data Breach Resolution and Consumer Protection, outlined several warning signs, including:
- Unrecognized charges to your credit card or bank account
- Unexpected credit checks on your report
- Receiving unfamiliar bills
- A sudden drop in your credit score
“All of these could be red flags that someone is using your identity,” he warned, adding that early detection can help minimize the damage.
