The Card Act of 2009 is expected to reduce bank income by $11 billion in 2011, and the Federal Reserve has been authorized to limit debit card fees that will cost $13 billion more in lost revenue to lenders and banks. The imposition of these tough restrictions on how fees can be charged has forced some changes by lenders that have hurt their relationship with cardholders. For example, interest rates have risen an estimated 3% since 2008. But no matter what the rationale for rate increases, consumers struggling to make ends meet can’t understand being charged for services that were once free.

In an effort to repair the damage, some of the major credit card lenders are beginning to lower or even eliminate some of their fees.

  • Bank of America and Wells Fargo have stopped levying penalty interest rates for late credit card payments.
  • Citibank and American Express announced the elimination of foreign transaction fees on some of their cards.
  • Bank of America waived late fees on accounts with balances of $100 or less.

The overall climate for borrowers is excellent for those who have pristine credit records. The opportunity to negotiate couldn’t be better. Ask about annual and late fees, penalty interest rates, balance transfer fees and foreign exchange fees, in addition to the annual interest rate, when considering a new credit card account.

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