Over the past number of years, it is common knowledge to most consumers that banks are not their friends and are out to nickel and dime them to increase their bottom lines. A popular bank trend lately is to charge a nominal monthly fee to consumers who elect to get paper statements.
I recently spoke to a consumer who was working very hard to get out of credit card debt. His plan was to stop using all the credit cards and work hard to pay off the existing balances. Once he put his plan in motion, he managed to successfully pay off one credit card in full. He explained that he did not want to be tempted to use this credit card again so when he received his new statement for this credit card he tossed it right into the garbage. What he didn’t understand is that the new statement had a balance due of $3. This balance was due to a fee he was charged since he did not elect to receive electronic statements. He previously was not aware of the $3 fee since it was mixed in with his charges and interest fees. After a few months of not paying the $3 fee, he found out his credit score plummeted over 100 points and his good intentions of better financial security back fired.
While he was at fault for not knowing he had to continue to pay on the card due to the monthly fee, his experience is a good warning for how this bank fee trend can adversely impact a credit score. Please be wise consumers and review all your credit card and bank statements so you can avoid falling into a similar situation.
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Credit Reporting / Scoring Expert, Chris McConville is the President of Credit Education at CureMyScore.com and founder of myexpertcreditwitness.com where he works as an Expert Credit Witness work in both Federal and State Court. With more than 20 years experience working in credit along with his extensive past Mortgage Originating career, he’s dedicated to sharing his knowledge to educating consumers.
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