American Express cobranded hotel or airline credit card will be charged a fee to reinstate rewards lost because of a late payment. American Express recently announced that late payments would cause cardholders to lose any rewards accumulated during that month.
If you want to get your rewards back, you'll have to pay a $29 reinstatement fee, according to ABC News. Of course, you'll still have to pay a late payment fee of up to $38. Your interest rate could increase too, because of the late payment. Starting February 22, 2010, you can only be charged the penalty rate when you're more than 60 days late on your credit card payment.
Weekly Credit and Debt News Roundup:
- Salvation Army bell ringers in North Carolina will be accepted credit card donations. I suspect that bell ringers all over the nation will be taking credit cards. MyFox8.com
- A recent study shows that the America's wealthiest credit card users receive at least $354 million in "frills," while the nation's poorer card users pays at least $669 in fees and interest. -NASCOnline
- The majority of holiday shoppers plan to use cash or debit this holiday season. It's good for consumers, but bad for retailers, credit card companies, and the economy. -USAToday
- A Nevada couple faces home foreclosure even though they were current on their mortgage payments. The homeowners were sent to a collection agency because they were late on homeowner's association fees. -Las Vegas' 13 Action News
- There won't be a freeze on credit card interest rates ahead of the new credit card rules. -Denver Post
Rewards are lost due to late payments? Wow that is news to me, very big penalty!
John DeFlumeri Jr.
Fees, another great reason to never use a credit card. Credit Card companies (Banks) will do almost anything to lure you into their trap but, as the article shows, one false move and you get slammed with fees and other “punishments”. Rule #1 – do not use credit cards to buy anything, Rule #2 – do not rely on a credit card for emergency cash. A great alternative is to save up some emergency cash in a liquid place like a money market fund or account.
I applaud Congress for the recent legislation to regulate these out-of-control lending practices but in the end, the individual must make the choice to protect themselves by cutting their cards up.
Other grievences against Consumer Credit Cards:
preying on college students/young adults
universal default
hidden fees
exorbitant late fees
unfair interest rates