For instance, the study revealed that credit card issuers have disclosed major changes to their policies of immediately hiking interest rates on both new and existing purchases when borrowers trigger a penalty. While 94% of major banks still impose penalty rates, new rules give consumers more advance notice of rate changes and the ability to return to a lender's base rate. Likewise, four out of five credit card issuers have removed overlimit charges from their fee schedules.
However, researchers also discovered new fees and penalties creeping into new credit card agreements. Delinquent borrowers may lose perks, points, or miles accrued on their accounts. In addition, many major banks have raised balance transfer processing charges and annual membership fees.
About the Author
Joe Taylor Jr. is an internal business consultant for a Fortune 500 company, who writes about finance, culture, and design. He holds a Bachelor of Science in Communications from Ithaca College.