New credit card laws' impact on your bills
By Connie ThompsonNew credit card laws have only been in effect for three weeks, but they're already having an impact on credit card bills. MultimediaWhen the credit card act took effect, I warned to you watch for new annual fees and a switch from flat interest rates to variable rates. Both are already happening. I also warned you to watch for more foreign transaction fees, and it turns out that new fee may be a little trickier to catch in advance. Don Johnson of Everett says he knew all about the new credit card laws. He follows money news, and spends a lot of time trading stocks online. "This is a little hobby. And I do make money at it," Johnson said. He wasn't concerned about fees when he ordered a stock trading newsletter online. According to the Web site, the company's address is in New York City. The site also states all charges will be made in U.S. dollars under Lombardi Publishing. The return addresses on the company's snail mail are all in America -- Fifth Avenue in New York City, Wall Street in New York City and a newsletter fulfillment center in Miami Gardens, Florida. So you can imagine his shock when he noticed the fourth item listed on his credit card statement said "Fees Charged - $10.80. It's a foreign transaction fee. "Basically its for doing a transaction in another country," said Johnson. In all his checking before placing an order, Johnson missed an important clue in the company's phone number -- the area code. "See, here's 905 again which, I believe, is Las Vegas," Johnson said. What he thought was Las Vegas, is actually for Ontario in Canada. A good part of the company operates outside the U.S. In the credit card company's view, he made a foreign transaction, which means a foreign transaction fee. Before you order anything online or even over the phone using your credit card, double check the company's physical business address. Make sure you know the country where the bill will originate, regardless of its mailing address. And call your credit card company ahead of time. A ask how much extra they plan to charge you for making a foreign transaction and whether that fee will include any fees for currency exchange rates. Most Popular |
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February 9, 2012
- Coos Bay / North Bend, Oregon
