Finance
Credit card companies now charging extra fees for paper statements
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A new push to move credit card users to a digital statement will now come with a penalty for those who don’t want to comply.
Credit card companies from big name retailers have been silently rolling out a fee of $1.99 if you wish to keep receiving paper statements.
One of the biggest offenders is Synchrony Bank, and they have co-branded and store-affiliated credit cards with over 100 cards in their lineup, which include Sam’s Club® Credit Card, the Lowe’s Store Card, and the Amazon Store Card.
In November of last year, Citibank released new guidance to its customers saying that going paperless was “now required to access your account on Citi.com and the Citi Mobile App,”
MasterCard and Visa cards are seen in this illustration photo taken in Krakow, Poland on March 29, 2024. (Photo by Jakub Porzycki/NurPhoto via Getty Images)
There isn’t a law banning paper statements, however, but permission is required in order to start paperless billing.
In a report to NBC Los Angeles Alicia Galowitsch said that the change started to add up for them. They account for every penny.
“It’s very tight. It’s very tight to where we had to start going to a food bank,” said Ms. Galowitsch. “It’s going to be $11.94,” said Galowitsch.
The couple has a number of credit cards and receive statements to help with organization.
‘If I’m not here, the payments are going to be late because Mark’s not going to know what to do. With paper statements, everything is written down for him,’ she noted.
In this photo illustration, one and five dollar bills seen on display. (Photo Illustration by Igor Golovniov/SOPA Images/LightRocket via Getty Imagehoto Illustration by Igor Golovniov/SOPA Images/LightRocket via Getty Images))
Other concerns come with users who are not technologically savvy.
Business professor Elaine Luther from Point Park University says online banking can pose a threat to security.
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Online Reddit users have also been raising concerns regarding the fee.
For its report, WalletHub analyzed almost 5,000 deals from the Black Friday ad scans of 21 of the largest retailers in the U.S. (iStock) (iStock / iStock)
‘I have the Paypal mastercard and got a letter in the mail today. Beginning in April they will start charging if you are not using electronic statements. It is a small fee of $2.50 but still just a heads up if anyone has any cards by them may want to check.’
‘Closing my account, ’one user wrote on a thread titled: Synchrony to begin charging for paper statements,’ they said.
‘The Big Money Show’ co-hosts discuss buy now, pay later spending options and the impact it will now have on your credit score.
Small, everyday purchases like a meal from DoorDash are now able to be financed through eat now, pay later options — a practice that some experts deem “predatory.”
“You’ve got to have enough sense to not follow the urge to finance a taco, okay? You have got to be an adult,” career coach Ken Coleman told “The Big Money Show,” Wednesday.
“This is predatory, and it’s going to get a lot of people in deep trouble.”
RISKS OF BUY NOW, PAY LATER: ‘TICKET TO OVERSPENDING,’ EXPERT SAYS
DoorDash and Klarna are now partnering up to extend buy now, pay later options to consumers. (Reuters, Getty / Getty Images)
Financial wellness experts are continuously sounding the alarm to cash-strapped consumers, warning them of the devastating impact this financial strategy could have on their credit score as some lenders will begin reporting those loans to credit agencies.
Consumers may risk getting hit with late fees and interest rates, similar to credit cards.
“So your sandwich might show up on your FICO score, especially if you pay for it late,” FOX Business’ Jackie DeAngelis explained.
EXPERTS WARN HIDDEN RISKS OF BUY NOW, PAY LATER
Major players like Affirm, Afterpay, and Klarna have risen to prominence at a time when Americans continue to grapple with persisting inflation, high interest rates and student loan payments, which resumed in October 2023 after a pause due to the COVID-19 pandemic.
Ramsey Solutions personal finance expert and ‘The Ramsey Show’ co-host George Kamel discusses the ‘buy now, pay later’ craze and the trend that celebrates the financial benefits of being childless.
“The Big Money Show” co-host Taylor Riggs offered a different perspective, suggesting that company CEOs have a “duty” to attract as many customers as they want.
“Unfortunately for me, this always comes down to financial literacy — which I know is so much in your heart about training people to save now by later,” she told Coleman, who regularly offers financial advice to callers on “The Ramsey Show.”
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Coleman continued to come to the defense of financially “desperate” consumers, arguing that companies are targeting “immature” customers.
“I’m for American businesses being able to do whatever they want to do under the law. That’s fine. But let’s still call it what it is: it’s predatory, and they know who their customers are,” Coleman concluded, “And I’m telling you, they’re talking about weak-minded, immature, desperate people.”
FOX Business’ Daniella Genovese contributed to this report.
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