CITI will start adding annual fees for non usage

[plasticguy]

Citigroup Inc. has started adding annual fees to some of its existing credit card accounts in one of the first such attempts by a major issuer to offset the effects of the government's crackdown.

Card executives and industry members have predicted a widespread return of the annual fee, currently reserved for rewards-rich cards, since President Obama signed the Credit Card Accountability, Responsibility and Disclosure Act in May.

Citi's new charge, which kicks in if a cardholder does not spend enough, is one of many different annual fee experiments that industry members anticipate in the next six months.

Now that Citi has taken the plunge, "I expect testing of annual fees to accelerate," said John Grund, a partner at First Annapolis Consulting Inc. "It will be gradual, and they will become more prevalent, but they might not be on every product."

[athensguy]

---

@plasticguy wrote:
Citigroup Inc. has started adding annual fees to some of its existing credit card accounts in one of the first such attempts by a major issuer to offset the effects of the government's crackdown.

Card executives and industry members have predicted a widespread return of the annual fee, currently reserved for rewards-rich cards, since President Obama signed the Credit Card Accountability, Responsibility and Disclosure Act in May.

Citi's new charge, which kicks in if a cardholder does not spend enough, is one of many different annual fee experiments that industry members anticipate in the next six months.

Now that Citi has taken the plunge, "I expect testing of annual fees to accelerate," said John Grund, a partner at First Annapolis Consulting Inc. "It will be gradual, and they will become more prevalent, but they might not be on every product."

---

They're willing to place the blame anywhere except for their own dishonesty and incompetence.

[MattH]

---

@athensguy wrote:

---

@plasticguy wrote:
Citigroup Inc. has started adding annual fees to some of its existing credit card accounts in one of the first such attempts by a major issuer to offset the effects of the government's crackdown.

Card executives and industry members have predicted a widespread return of the annual fee, currently reserved for rewards-rich cards, since President Obama signed the Credit Card Accountability, Responsibility and Disclosure Act in May.

Citi's new charge, which kicks in if a cardholder does not spend enough, is one of many different annual fee experiments that industry members anticipate in the next six months.

Now that Citi has taken the plunge, "I expect testing of annual fees to accelerate," said John Grund, a partner at First Annapolis Consulting Inc. "It will be gradual, and they will become more prevalent, but they might not be on every product."

---

They're willing to place the blame anywhere except for their own dishonesty and incompetence.

---

And badly broken business models that assumed times would never again get tough.

[athensguy]

---

@MattH wrote:

---

@athensguy wrote:

---

@plasticguy wrote:
Citigroup Inc. has started adding annual fees to some of its existing credit card accounts in one of the first such attempts by a major issuer to offset the effects of the government's crackdown.

Card executives and industry members have predicted a widespread return of the annual fee, currently reserved for rewards-rich cards, since President Obama signed the Credit Card Accountability, Responsibility and Disclosure Act in May.

Citi's new charge, which kicks in if a cardholder does not spend enough, is one of many different annual fee experiments that industry members anticipate in the next six months.

Now that Citi has taken the plunge, "I expect testing of annual fees to accelerate," said John Grund, a partner at First Annapolis Consulting Inc. "It will be gradual, and they will become more prevalent, but they might not be on every product."

---

They're willing to place the blame anywhere except for their own dishonesty and incompetence.

---

And badly broken business models that assumed times would never again get tough.

---

I think that the banks, especially Goldman Sachs, saw most of this coming. They knew that regardless of the fate of the banks, the enormous salaries and bonuses paid out for fraudulent business practices would still be in the hands of the people that were causing the problems. They broke the economy on purpose for short term personal profits. It was just icing on the cake that they had enough folks high enough in government to get gifted trillions of dollars from the taxpayers.

[Anonymous]

"Card executives and industry members have predicted a widespread return of the annual fee, currently reserved for rewards-rich cards, since President Obama signed the Credit Card Accountability, Responsibility and Disclosure Act in May."

It's not Citi.  Their hands are tied right now, just like the rest of the banks.  They're not allowed to price their credit card products according to risk.  

Thank Obama, and Chris Dodd & Company!

[athensguy]

---

@Anonymous wrote:

"Card executives and industry members have predicted a widespread return of the annual fee, currently reserved for rewards-rich cards, since President Obama signed the Credit Card Accountability, Responsibility and Disclosure Act in May."

It's not Citi.  Their hands are tied right now, just like the rest of the banks.  They're not allowed to price their credit card products according to risk.  

Thank Obama, and Chris Dodd & Company!

---

They are absolutely allowed to price according to risk. They're just not allowed to re-price due to risk, or underprice at first as a bait and switch. That's no different than an auto loan or a mortgage or a signature loan.

[haulingthescoreup]

---

athensguy wrote:

---

@Anonymous wrote:

"Card executives and industry members have predicted a widespread return of the annual fee, currently reserved for rewards-rich cards, since President Obama signed the Credit Card Accountability, Responsibility and Disclosure Act in May."

It's not Citi.  Their hands are tied right now, just like the rest of the banks.  They're not allowed to price their credit card products according to risk.  

Thank Obama, and Chris Dodd & Company!

---

They are absolutely allowed to price according to risk. They're just not allowed to re-price due to risk, or underprice at first as a bait and switch. That's no different than an auto loan or a mortgage or a signature loan.

---

+1 to athensguy!

[MattH]

---

@athensguy wrote:

---

@Anonymous wrote:

"Card executives and industry members have predicted a widespread return of the annual fee, currently reserved for rewards-rich cards, since President Obama signed the Credit Card Accountability, Responsibility and Disclosure Act in May."

It's not Citi.  Their hands are tied right now, just like the rest of the banks.  They're not allowed to price their credit card products according to risk.  

Thank Obama, and Chris Dodd & Company!

---

They are absolutely allowed to price according to risk. They're just not allowed to re-price due to risk, or underprice at first as a bait and switch. That's no different than an auto loan or a mortgage or a signature loan.

---

Actually, they will be allowed to re-price, but they must give the customer sufficient notice that if what they are doing is out of line with the market the customer will have time to explore other options.

[athensguy]

---

@MattH wrote:

---

@athensguy wrote:

---

@Anonymous wrote:

"Card executives and industry members have predicted a widespread return of the annual fee, currently reserved for rewards-rich cards, since President Obama signed the Credit Card Accountability, Responsibility and Disclosure Act in May."

It's not Citi.  Their hands are tied right now, just like the rest of the banks.  They're not allowed to price their credit card products according to risk.  

Thank Obama, and Chris Dodd & Company!

---

They are absolutely allowed to price according to risk. They're just not allowed to re-price due to risk, or underprice at first as a bait and switch. That's no different than an auto loan or a mortgage or a signature loan.

---

Actually, they will be allowed to re-price, but they must give the customer sufficient notice that if what they are doing is out of line with the market the customer will have time to explore other options.

---

Yes, they will still be able to re-price if you are 60+ days late. And they will be able to change the price on future purchases. That seems reasonable to me.

[DI]

awe man, i better buy the young one a piece of bubble gum every month to get usage.  i don't want to pay any fees.