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Think you've never been charged a sneaky fee by your bank, broker, credit-card issuer or cell-phone provider? Then you haven't looked at your bills very closely. The Internet has made it easy to comparison shop with a few clicks, so companies find it tougher to raise prices. As a result, they've taken to boosting revenue by adding fees on the back end.
In 2007, Americans paid almost $30 billion in fees to credit-card issuers,reports R.K. Hammer, a bankcard advisory firm. "Companies figure they'll throw in as many fees as they can and a large percentage of people won't complain," says Bob Sullivan, author of Gotcha Capitalism.
SAVE MONEY ON FEES | |||
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SLIDE SHOW: Save $5363 a Year | ||
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How We Beat the Fees | ||
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EXTRAS | |||
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SLIDE SHOW: Pesky Fees We Can't Stand | ||
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Share Your Most Annoying Fees | ||
Don't be one of them. If your bank, for example, suddenly slaps a $5 monthly fee on your checking account, you're not necessarily bound to pay it. In fact, you can save thousands of dollars a year if you pick your battles and fight smart. Sullivan has his own tactics:
Call during business hours. Few managers are available on weekends, and you won't get the cream of the crop among lower-level representatives. At Gethuman.com, you can find codes that let you circumvent company phone trees.
Do your research and flex your muscle. Tabulate how much money you've spent with the company, which can boost your bargaining power. If you think you've been treated unfairly, don't hesitate to say you're considering a letter to the state attorney general.
Don't waste your time. A $2 fee may get your goat, but you can't afford to fight every charge. Your chances of winning are directly correlated to how much leverage you have. With financial services, such as banking and credit, "consumers ultimately hold all the power because they can vote with their feet," says Greg McBride, of Bankrate.com. In fact, a survey for Sullivan's book found that customers who complain to credit-card companies get results 65% of the time.
Below, we show you how to avoid the most annoying fees -- and save $5,000 (or more) a year.
Reduce Bank and Credit Card Fees
Beat Back Investment Fees
Zap Cell Phone Fees
Avoid Car Rental and Purchase Fees
Navigate Around Hotel and Airline Fees
READER COMMENTS
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POSTED BY: Lisa (December 17, 2008 10:30 AM)
I was attempting to pay off First Equity in full and they informed me I would still get a bill for the 30 day cycle for cash advances. How is that?
POSTED BY: done with big banks (January 15, 2009 09:18 PM)
Chase Bank offered me 3.99% life of the balance on a transfer years ago. I accepted and kept up my end of the deal. Just before it was paid off at the end of 2008, they issued "change of terms" and informed me that they'd be slapping me with $10/month maintenance fee on my account. When I asked, it was because the cost of doing business on my accout was too high so they were changing the game. As of the first of 2009, my balance was $0 and they still charged the fee. I closed the acct promptly. Isn't it enough that my government takes so much of my money and gives it away?? Does my bank have to victimize me because they loaned money to people that can't/won't pay it back? "We reserve the right to change your terms any damn time we feel the need no matter what. We really don't care about how we treat our customers." Ah, the big bank mantra.
POSTED BY: Done with Chase too! (January 19, 2009 06:17 AM)
My husband and I received our Chase statement recently with the additional $10 monthly service fee and our minimum payment went from $125 to $300. We got the same response as the other posting...the cost of doing business. To which my husband told them that we will not be paying for thier financial blunders. We will be paying this card off asap and closing this account!
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POSTED BY: Lisa (December 17, 2008 10:30 AM)
I was attempting to pay off First Equity in full and they informed me I would still get a bill for the 30 day cycle for cash advances. How is that?
POSTED BY: done with big banks (January 15, 2009 09:18 PM)
Chase Bank offered me 3.99% life of the balance on a transfer years ago. I accepted and kept up my end of the deal. Just before it was paid off at the end of 2008, they issued "change of terms" and informed me that they'd be slapping me with $10/month maintenance fee on my account. When I asked, it was because the cost of doing business on my accout was too high so they were changing the game. As of the first of 2009, my balance was $0 and they still charged the fee. I closed the acct promptly. Isn't it enough that my government takes so much of my money and gives it away?? Does my bank have to victimize me because they loaned money to people that can't/won't pay it back? "We reserve the right to change your terms any damn time we feel the need no matter what. We really don't care about how we treat our customers." Ah, the big bank mantra.
POSTED BY: Done with Chase too! (January 19, 2009 06:17 AM)
My husband and I received our Chase statement recently with the additional $10 monthly service fee and our minimum payment went from $125 to $300. We got the same response as the other posting...the cost of doing business. To which my husband told them that we will not be paying for thier financial blunders. We will be paying this card off asap and closing this account!
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