USA Fed Credit Union Platinum VISA - unwelcome surprise fee!

[DaveinSC]

I received my new USA FCU Rewards Platinum Visa in the mail today, and I noticed some unwelcome, and previously undisclosed fees associated with their VISA products:

Inactivity Fee ($0 Balance, no activity for 6 months) - $10.00    $20.00/year to sock drawer this puppy! I see a pack of gum in my future....

Rewards Credit Card (like my card) Annual Fee effective 1/1/11 - $25.00.  Waived if you charge more than 5K in one year. Not a problem for some.

Non-activation of card within 60 days if issuance - $10.00  BS fee, pure and simple.

Replacement Card - $10.00  Bad on ya if you lose this thing.

Additional card for another authorized user - $10.00    What, you DON'T want more business with another auth. user?

And many more fees in addition to that.  If this is how they treat their Platinum customers, no wonder they're getting taken over by NFCU for poor business practices!  I sure hope that NFCU does away with some of these bull**it fees!  All that, AND 9.9% APR??  NFCU has a job in front of them if they don't want me and potentially others cutting this sucker up in 11 months. I hope their replacement product treats customers better!

[bostonte]

I agree about the fees -- but Yeah, that 9.9% apr is so bad it's insulting. Umm, what? How low do you expect?

[DaveinSC]

My USAA Platinum MC is at 6% APR. 

My USAA AMEX is at 7.75% APR

My boyfriend's Wachovia VISA is at 5.9% APR

So, yeah, pardon me if I whine just a little bit about 9.9%.     But, I do know that others pay more. NFCU said that VISA cards would transfer over with APR's intact....sigh....

[haulingthescoreup]

Oh, well, at least you got into Navy. Hope the fees don't apply as well.

I suppose if you don't mind an inq and additional new account + drop in AAoA, you could go ahead and apply for a real Navy card and close this one.

[bostonte]

I guess this should be a lesson to actually read the disclosures before applying for something.

You got the lowest rate USA Fed offered on that card. And all the fees you mention are very clearly listed in the disclosure.

Neither should have been a surprise.

[TangMeister]

---

@DaveinSC wrote:

I received my new USA FCU Rewards Platinum Visa in the mail today, and I noticed some unwelcome, and previously undisclosed fees associated with their VISA products:

Inactivity Fee ($0 Balance, no activity for 6 months) - $10.00    $20.00/year to sock drawer this puppy! I see a pack of gum in my future....

Rewards Credit Card (like my card) Annual Fee effective 1/1/11 - $25.00.  Waived if you charge more than 5K in one year. Not a problem for some.

Non-activation of card within 60 days if issuance - $10.00  BS fee, pure and simple.

Replacement Card - $10.00  Bad on ya if you lose this thing.

Additional card for another authorized user - $10.00    What, you DON'T want more business with another auth. user?

And many more fees in addition to that.  If this is how they treat their Platinum customers, no wonder they're getting taken over by NFCU for poor business practices!  I sure hope that NFCU does away with some of these bull**it fees!  All that, AND 9.9% APR??  NFCU has a job in front of them if they don't want me and potentially others cutting this sucker up in 11 months. I hope their replacement product treats customers better!

---

Yeah, that's a bit much overall.  I think this was an attempt to generate additional income after the mortgage debacle left them on the brink of collapse.  I'd be contacting NFCU as soon as your membership access number arrives in the mail from them after the conversion, and convert this card to a Cash Rewards Visa or one of their other cards.  Navy doesn't roll like this with fees.  Good luck!

[DaveinSC]

Bostonte,

Thanks for your 'subtly superior' (toned) reply. HOWEVER, one of my points was that these fees were previously u-n-d-i-s-c-l-o-s-e-d, as in I didn't see them till the card was issued. As in there was no pre-issuance disclosure of these fees on the USA FCU website. They were presented in the credit card mailer as a seperate quarter page addendum dated June 1, 2010.  But you pointed out the blindingly obvious, that yes, one needs to be aware of what one is getting oneself into.  Fortunately, I can handle these nuisance fees until NFCU issues me one of their own cards. When I looked at their website, I didn't see any additional VISA related fees.

[DaveinSC]

And no, I'm not seriously whining about the 9.9% APR.       I pay my bills off every month so that doesn't affect me.  And, anything under 10% is still darned good these days!

[Anonymous]

---

@DaveinSC wrote:

My USAA Platinum MC is at 6% APR. 

My USAA AMEX is at 7.75% APR

My boyfriend's Wachovia VISA is at 5.9% APR

So, yeah, pardon me if I whine just a little bit about 9.9%.     But, I do know that others pay more. NFCU said that VISA cards would transfer over with APR's intact....sigh....

@ARE those promotional APRs from USAA because I've had CC with them for years and I've NEVER seen APRs as low as those. Current best offers are MC @ 8.9% and Amex @ 8.9%. Are you sure they are not variable rate CC that are prime + 6%, prime + 7.75%?

[DaveinSC]

IDMD,

I checked my online statement at USAA for both my products: (and then pasted from my account summary page) 

WORLD MASTERCARD:

Regular APR (Annual Percentage Rate) on new transactions

6% (Prime + 2.75%)

USAA REWARDS AMERICAN EXPRESS

Regular APR (Annual Percentage Rate) on new transactions

7.75% (Prime + 4.5%)

HELOC

Annual Percentage Rate

3.10% Variable

AFAIK, these are not teaser or promotional rates...they're just what I pay based on my FICO and my relationship with USAA.

They've always been a wonderful company to work with. I've been a USAA member since 1991, and will be 'til the end, I imagine!