The Credit Card Accountability, Responsibility and Disclosure Act was designed to eliminate fees that would lead to consumers compile more debt, but banks have still found a way around it.
According to a new report from the consumer financial advice website Wallet Pop, many banks have added or increased a number of fees, including annual fees on credit card accounts that weren’t there before, or charging levies for prolonged periods of inactivity on accounts.
Though the Credit CARD Act will outlaw such inactivity fees starting on August 22, the report said that it’s likely banks will be able to find a loophole to circumvent this restriction, or else will replace them with additional annual fees for something else related to the account.
The report noted that banks have also increased their fees for things like keeping a safe deposit box at a branch (in one case from $30 a year to $63.75) or cashing checks from foreign countries.
Many experts thought banks might attempt to add fees of this kind as a way to drive profits lost as a result of the Credit CARD Act, and this report shows that those institutions have been largely successful in doing so.