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AMEX New Fee for Credit Balance Inactivity & Rate change
September 10, 2018
8:50 am
Rick
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Got this update with the Sep statement.
Effective , a new fee for credit balance inactivity will be added to your Card and will apply in the following circumstances:
- Your account has a credit balance; AND
- Your account is inactive (meaning no charges or payments); AND
- Your account has been inactive for 12 or more consecutive billing periods

Except as noted below, effective the first day of the next billing period for your account after November 8, 2018, the Preferred Rate for Funds Advances will increase to 22.99%. The first day of a billing period is the day after the Closing Date shown on each monthly statement.

Wow...23% (not that I carry a balance)..Tony Soprano would be envious.
Checked Quicken and my last charge was Oct 2017. So now deciding whether to cancel it or just charge 10 bux once a year "just in case". I did keep it active as they have some fantastic A/M deals, concert advance sales, rate specials and other incentives I rarely took advantage of, but don't like being forced to use it.
Hope they aren't leading the pack in a trend.

September 10, 2018
8:56 am
Top It Up
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Rick said

Wow... 23% ... Tony Soprano would be envious. 

One would really have to have their back up against the wall to be resorting to CC cash advances - no sympathy here.

--------------------------------------

Of course there's always Money Mart. There's a Money Mart right next door to my dry cleaner and I'm always amazed at the amount of business they do!

British Columbia Payday Loans - Terms and Conditions

Loan amounts Loan amounts range between $120.00 to $1,500.00 (subject to qualification criteria).

Fees and charges

Each payday loan is subject to a fee of $15.00 per $100.00 borrowed.
For a $100.00 loan, a payment of $115.00 will be due at the end of the loan term.

Loan Amount - $120

Total Cost of Borrowing - $18.00

Total - $138.00

For a $300.00 loan for 14 days:

The Total Cost of Borrowing this loan is $45.00

The Annual Percentage Rate is 391.07%

Loan Terms

Loan will be due on your next payday.
Loan terms range between 7 – 42 days.
The loan must be paid in full on or before the scheduled due date.

Default

In the event of default, borrowers may be charged a returned item fee of $20.00 plus interest at a rate of 30% per annum.

September 10, 2018
9:22 am
Rick
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Top It Up said

Rick said

Wow... 23% ... Tony Soprano would be envious. 

One would really have to have their back up against the wall to be resorting to CC cash advances - no sympathy here.

--------------------------------------

Of course there's always Money Mart. There's a Money Mart right next door to my dry cleaner and I'm always amazed at the amount of business they do!

British Columbia Payday Loans - Terms and Conditions

Loan amounts Loan amounts range between $120.00 to $1,500.00 (subject to qualification criteria).

Fees and charges

Each payday loan is subject to a fee of $15.00 per $100.00 borrowed.
For a $100.00 loan, a payment of $115.00 will be due at the end of the loan term.

Loan Amount - $120

Total Cost of Borrowing - $18.00

Total - $138.00

For a $300.00 loan for 14 days:

The Total Cost of Borrowing this loan is $45.00

The Annual Percentage Rate is 391.07%

Loan Terms

Loan will be due on your next payday.
Loan terms range between 7 – 42 days.
The loan must be paid in full on or before the scheduled due date.

Default

In the event of default, borrowers may be charged a returned item fee of $20.00 plus interest at a rate of 30% per annum.  

The "business" quoted is the next step down from carrying a balance on your credit card... preying on the truly desperate and/or financially incompetent people at criminal rates (Yes, I too have noticed they never seem to be hurting for customers, a sad commentary on our educational system, but I digress). And those are the rates AFTER BC government legislated caps.

FINALLY GOT 1 +1 !!! sf-cool

September 10, 2018
11:33 am
Norman1
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Rick said
Got this update with the Sep statement.
Effective , a new fee for credit balance inactivity will be added to your Card and will apply in the following circumstances:
- Your account has a credit balance; AND
- Your account is inactive (meaning no charges or payments); AND
- Your account has been inactive for 12 or more consecutive billing periods

Hope they aren't leading the pack in a trend.

BMO was earlier with a $10 inactivity fee on their MasterCard in 2016.

But, the AMEX fee seems to apply only if the card is inactive and has a credit balance. If that is the case, then one could avoid it by having a balance of zero and not overpaying the monthly bills.

September 10, 2018
12:26 pm
davidgeorge
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I am going to cancel my AMEX SimplyCash Card (1.25% cash back). I haven't used my AMEX card since I got Rogers MasterCard (1.75% cash back) early this year.

September 10, 2018
9:20 pm
User230
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Scotia charges an inactivity fee regardless of balance.

That is much worse.

This is a cash grab by AMEX. knock a person well their down type move.

Not a fan.

It might also be a tactic to get people to continue to pay their balance. So, they can slow drain them instead of them going to collections.

Either way a crappy choice by AMEX. Plus, they devalued it in terms of benefits. Which isn't entirely bad. They basically made it less consumer friendly. More profits oriented.

If they are doing this they should push their Cash Back up or give bonuses percent back in categories or add some feature of some sort.

I'm kind of sick of all these companies always coming out with bad news. They should at least offer something good to distract from all this bad.

They do not because they know they can give all this bad news and very few people will actually care enough to even read and understand what it means. Basically, consumer loses again.

September 10, 2018
9:31 pm
AltaRed
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I have an Amex Simply Cash credit card and the last charge on it was Nov 2015. In fact, I have a negative balance of $4.51 on it since early 2016 because of 'cash back'.

Does that mean I should be charging something to that card in the near future? The only reason I have the card is for 'front of the line' tickets, although it seems it is still impossible to get good 'advance' seats for concerts and perhaps it is time to just cancel the card. I really have no use for Amex anyway.

September 10, 2018
9:51 pm
User230
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To AltaRed,

Main reasons to keep include:

- Diversity of networks. Whole networks have been known to have major disruptions for days possibly weeks

- Transfer of History to other countries if you move to another country. AMEX is the only major network that allows this.

That's basically it.

September 11, 2018
7:34 pm
Rick
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I always round up when paying my bills, so a credit balance would affect me. Been burnd a couple of times by senility/brain fart/dyslexia syndrome so I just round it up to the nearest 5 bux and carry the excess over. I can see their point...they kept sending me statements with a 3 dollar credit for six months when I don't use the card. Would rather they just quit reminding me I had a 3 buck credit every month, but I guess they have rules to follow. Not entirely sure a credit balance of zero would not ensure an inactivity charge. Will check for sure.

September 11, 2018
8:21 pm
Loonie
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When I have a positive balance on my Capital One card, they send me a refund after a few months and claim that the law requires this, or words to that effect. It has something to do with they are not a bank and can't store our money. It is typically under $100 but certainly more than $10 and is due to my having returned something to a store.
Perhaps there is a minimum balance where they are required to refund it?

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