Verizon and JCPenney credit card users slammed with $2.99 a month fees as banks prepare to take hit
Users of JCPenny and Verizon credit cards will soon have to pay an additional $2.99 monthly fee.
The cost was required, according to Synchrony and Bread Financial, the companies’ card issuers, following the Consumer Financial Protection Bureau’s announcement of a rule that limits the amount of late fees that the sector can collect.
The CFPB claims that by imposing harsh penalties on customers with low credit scores, the credit card industry takes advantage of them.
However, banks have passed the expense on to customers rather than reducing fees.
According to Sanjay Sakhrani, an analyst at KBW, “They are the two banks that have been most vocal about it, because they were going to be the most impacted by it.”
“The consensus now, however, is that the rule isn t going to happen.”
Read more money news
The government proposed a regulation in March to set late fines at $8 per occurrence, which is less than the average of almost $32.
Consumers would save $10 billion a year under the rule.
Perry Beberman, CFO of Bread, stated: “We’ve implemented a number of changes that are in market, including the APR increases and paper statement fees.”
The impact on consumers will increase because the increased APRs apply to new loans rather than existing ones.
Customers can anticipate paying a monthly fee of $1.99 to $2.99 for paper statements if they use credit cards connected to Verizon and JCPenny.
Sam’s Club Credit Card, Lowe’s Store Card, and Amazon Store Card are all co-branded and store-affiliated credit cards offered by Synchrony Bank.
Reddit is one social media platform where credit card users have vented their ire about the cost.
“I have the PayPal mastercard and received a letter in the mail today,” one person cautioned. They will start charging you in April if you don’t use electronic statements.
“It is a small fee of $2.50 but still just a heads up if anyone has any cards by them may want to check.”
They were “closing [their] account” because of the cost, according to another.
Customers can choose to get their statements electronically, which is one method to avoid the monthly fees.
Although paper statements are not prohibited, authorization is needed to start using paperless billing.
SIGNS YOUR CREDIT HAS BEEN COMPROMISED
The following are indicators that your credit has been compromised:
It’s critical to identify the early warning indicators of identity theft.
Experian Global Data Breach Resolution and Consumer Protection vice president Michael Bruemmer listed a number of red flags, such as:
- Unrecognized charges to your credit card or bank account
- Unexpected credit checks on your report
- Receiving unfamiliar bills
- A sudden drop in your credit score
He cautioned that “all of these could be red flags that someone is using your identity,” and that minimizing the harm can be achieved through early discovery.
Note: Every piece of content is rigorously reviewed by our team of experienced writers and editors to ensure its accuracy. Our writers use credible sources and adhere to strict fact-checking protocols to verify all claims and data before publication. If an error is identified, we promptly correct it and strive for transparency in all updates, feel free to reach out to us via email. We appreciate your trust and support!