Off topic - Credit card - No annual Fee

[Anupam Routh]

Greetings! Everyone receives credit card application forms by mail. Some credit cards state in the application form - No Annual Fee. Is it a binding contract for ever or the credit card company can change their mind and charge annual fees? Just curious. With thanks.



PS - I tried to post this message earlier but some how the message got lost in the clouds. I must have done something wrong.

 

[Thomas Rogers]

I suspect it isn't a binding contract and that there is some small print somewhere in your CC terms that say they can restate and redefine fees on a periodic basis.



Either way, you can always ask the CC company to waive the fee. Most will with one phone call.



TJR

 

[WXMotorSports DecalsPartsAccs]

And, you can get them to lower the % rate too. If they won't I always tell them great please close the account. I've only had one say ok we'll close the account. The card was paid off anyways as I don't run up CC bills.

 

[Wes Davis]

Yes they can change the contract at anytime. They must notify you by mail and when they do they usually include an address for you to submit a written letter if you refuse changes. At their option they may not apply the changes to your account or cancel your card. Of course if your card gets canceled you must still pay off your balance and then the account will be closed.

 

[Kevin Palmer]

In most cases, you will find a time-line listed. No Annual Fee for 24 Months kind of thing..



Or, there will never be an annual fee but the interest rate is a bit higher...

 

[biznaga]

Nowdays if you are late on your phone/garbage/sewer/etc. bill they can and do raise your rate.

 

[Bob McDonald]

Usually, whenever they unilaterally change the terms on an account, the letter notifying you of the change states that your continued use of the card constitutes acceptance of their proposed terms modifications. Your only other option is to close the account and immediately pay off any balance.

They are counting on you not taking that option.

 

[Richard L]

Nothing the credit card companies put in the agreements are immune from their ability to make changes at any time they so choose.



Your only option is to accept or rject the now changes. If you reject the changes, your card will be voided. You will still be required to make your monthly payments until the balance and interest is paid in full. You do not have to pay off the intire balance immediately, Although that would be the best way to discourage Credit Card companies from making those kinds of changes.



Also watch the working of interest rates and annual fees that are only lowered or waived for the first iyear. That means you don't pay a fee to get the card, but you will pay an annual fee the next year.



...Rich

 

[MH Ariola]

None of my credit cards has an annual fee; that was listed as one of their selling points so I never bothered to read the fine print. If any of them ever institutes an annual fee, they're gone! Plenty of other cards out there to chose from, why put up with an annual fee?