1. Jenny, Natalie, Jessica, Jordan, Kelly Jordan Jenny Jessica Natalie Kelly Credit-Card Fees: the New Traps Law Allows Some Aggressive Lender Tactics to Continue By ROBIN SIDELROBIN SIDEL

2. Whats in the Credit Card Bill? President Obama signed the bill back in May of 2009, and the bill took effect on February 22, 2010. Card companies now must tell customers how long it would take to pay off the balance if they only make the minimum monthly payment. Customers can only exceed their credit limit if they agree ahead of time to pay a penalty fee.

4. Changes for card issuers: Card companies must now tell customers how long it would take to pay off the balance if they only make the minimum monthly payment Unless a cardholder misses payments for more than 60 days, interest-rate increases will affect only new purchases, not existing balances. Hard hit for revenue These bans could cause a loss of $12 billion a year for card companies

5. How they will combat the law? Card issuers are deploying new tactics that could prove more costly for even cautious credit card holders Higher annual fees, higher balance-transfer charges, growing charges for overseas transactions Companies can get around the law; if they raise the rate on new purchases as long as they provide 45 days notice

6. How will they combat the law? Citigroup: If you pay on time, you receive a 10% credit on your total interest charge If you do not pay on time, your interest rate is 29% Card companies plan to switch customers from fixed- rate cards to variable-rate cards More fees for extra services Paper statements & extended warranties on purchases

7. How does the new law affect banks? Last year, Bank of America and J.P. Morgan Chase suffered combined net losses of $7.8 billion in their credit-card operations Banks are expecting that this year will bring more red ink unless there is a miracle rebound Banks could be hurt further as consumers try to clean up their finances, especially high-cost credit card debt The average American was running a credit-card balance of just over $5,400 at the end of 2009, down about $200 from five years ago

8. How does the new law affect banks? Three years ago, banks were tripping over themselves to issue credit cards to just about anybody, and consumers were on a spending spree They have pruned many of their more extravagant cardholders, and are using higher transaction fees to raise more money from cardholders who pay their bills each month rather than run up huge balances U.S. banks on average increased the interest rate on their credit cards by about two percentage points between December 2008 and July 2009

9. Source - www.credit.com

10. What will they do to raise revenue? Banks already are reaping more fees on overseas transactions, and are changing the definition an overseas transaction In the past, people who made online purchases from foreign merchants, or who traveled to a country where the purchases are often in U.S. dollars such as the Bahamas, were generally immune from paying such fees Citi and Bank of America recently imposed their 3% foreign- transaction fees on all foreign transactionseven if that purchase is charged in U.S. dollars Discover Financial Services also began charging a new 2% for foreign purchases last year

11. What will they do to raise revenue? American Express Co., which is known for its lucrative rewards programs, recently added new fees to its co-branded Hilton Hotels, Starwood Hotels and Delta Air Lines cards Cardholders who pay late will lose their rewards points - they can reinstate them to their accounts if they pay a $29 fee Fifth Third Bancorp is charging customers $19 if they don't use their credit card in a year Citigroup is alerting some customers that it is assessing a $60 annual fee on their cards, but if you spend $2,400 on the card in a 12-month period the bank will refund the fee

12. How will this effect consumers? Usage change Higher interest rates Higher annual fees Higher balance-transfer charges Growing charges for overseas transactions Countless new fees

13. Usage change Consumers will try to clean up their finances not be applying for credit cards trying to pay off old debts quicker Consumers will switch credit card holders competitors offer lower fee or none at all Competitors will offer better transfer balance rates

14. Increased Rates Raising rates is possible because credit-card companies inform you ahead of time they don't make any sudden rate changes they are mostly free under the law to charge whatever they want they can raise the rate on new purchases made as long as they provide 45 days notice that they are doing so

15. To get around government regulations: Credit card companies plan to collect more interest by switching to variable-rate cards More fees Paper statements, itemized transactions, foreign exchange Annual fees & inactivity fees Reduced reward programs