It's often said America is the home of the fee. Here are five of the worst... Is your most hated fee on it?
It’s no secret that consumers view fees with the same disdain that a Celtics fan feels for Kobe Bryant.
But like Kobe to the Celtics, consumer fees are a hard reality in life, whether it’s a fee triggered by a late credit card payment or one that comes from getting your driver’s license renewed.
But what are the worst offenders, fee-wise? Money Magazine is out with a list of the absolute worst consumer fees. What’s on the list might surprise you.
Here’s a look at their top five worst offenders.
- Charged for not charging – Credit card companies are ramping up fees for consumers who own a card, but who aren’t using it. Citibank charges some cardholders $60 if they charge less than $2,400 per year.
- Home equity loan fees – If you pay down a home equity loan (HELOC) early, congratulations. But your lender won’t like it – you’re apt to pay anywhere from $250 to $750 to pay down a HELOC early.
- Bank transfer fees – More and more bank customers are linking their savings accounts to their checking accounts. That can protect bank consumers from onerous overdraft fees, which can soar as high as $36 per overdraft. But some banks charge you $20 or $30 for these transfers – something that costs the bank virtually nothing.
- Frequent-flier miles – As Money puts it, can you really call it rewards travel when you have to pay for the reward? Apparently so. US Airways and Americans, for instance, can charge you $50 to redeem your frequent flier miles.
- Annuity fees – Annuity investors often complain about unknown fees. Insurance companies call them “expenses” – but according to Money, that’s just corporate-speak for hidden fees of up to 3% of your annuity’s value.
Those are just the top-five of the most blood-pressure raising fees. For the entire list, see this article at CNN/Money.