In the wake of how the CARD Act is effecting the banking industry, we are beginning to see the implementation of anticipated tactics by banks to acquire more fees from their clients.  The credit card industry thrives off of fees more so than they do with interest charges.  One historically common fee was the annual fee.  As cards became more popular, major competitors got into pricing wars in attempts to lure consumers to appealing zero % introductory interest rates, and no annual fees.   Annual fees, which were common until about 10 years ago, have officially made a comeback. During the final three months of last year, 43 percent of new offers for credit cards contained annual fees, versus 25 percent in the same period a year earlier, according to Mintel International, which tracks marketing data. Several banks also added these fees to existing accounts, in efforts to offset losses that were imminent as a result of the CARD Act regulations.

One example of the new introduction of the annual fee can be seen by Citigroup, who plans to require customers to start paying a $60 annual fee starting on April 1.  Unfortunately this was not some April Fool’s joke, and it looks like it is going to be a new reality for many lenders.  Be cautious and make sure to determine if you are paying an annual fee.  One might think, $60 dollars a year, which is only $5 dollars a month.  Seems innocent enough, but if you have a million clients who are paying you $60 dollars a year, that equates to sixty million dollars in profits ($60,000,000)!  Put into prospective, the credit card companies are making out like bandits!