Discover has joined Citibank and Fleet in the trend to boost late payment
fees
on credit cards beyond the $29 barrier. Late payment fees increased 5.5% last
year and have soared 134% since 1994. Effective March 1, Discover will assess
of $35 late fee on past due balances over $1,000. For balances under $100, the
fee will drop to $15, and for past due balances between $100 and $1,000, the
fee will be $25. In August, Citibank boosted late payment fees from $29 to $35
using the same tiered structure announced by Discover. Fleet, CompuCredit, and
Direct Merchants have also crossed the $29 late fee level. CompuCredit now
charges a $35 late fee and a $35 over-limit fee on its lineup of 'Aspire VISA'
cards. Direct Merchants Bank charges a $34 late fee on its new 'Titanium
MasterCard'. In 2000, Fleet Credit Card Services began charging a $35 late fee
on all its card products including the new 'Fusion smart VISA'. Advanta was
the
first card issuer to institute $35 fees for holders of its business card
products.
Discover has joined Citibank and Fleet in the trend to boost late payment
fees
on credit cards beyond the $29 barrier. Late payment fees increased 5.5% last
year and have soared 134% since 1994. Effective March 1, Discover will assess
of $35 late fee on past due balances over $1,000. For balances under $100, the
fee will drop to $15, and for past due balances between $100 and $1,000, the
fee will be $25. In August, Citibank boosted late payment fees from $29 to $35
using the same tiered structure announced by Discover. Fleet, CompuCredit, and
Direct Merchants have also crossed the $29 late fee level. CompuCredit now
charges a $35 late fee and a $35 over-limit fee on its lineup of 'Aspire VISA'
cards. Direct Merchants Bank charges a $34 late fee on its new 'Titanium
MasterCard'. In 2000, Fleet Credit Card Services began charging a $35 late fee
on all its card products including the new 'Fusion smart VISA'. Advanta was
the
first card issuer to institute $35 fees for holders of its business card
products.