I canceled a BOA card earlier this year b/c they halved my credit line. It was a card I've had for 10+ years, and rarely used. I knew there would be an impact on my credit, but if we consumers allow big companies to bully us, we'll never get a fair break. There are plenty of cards that have no fees and reasonable interest rates, and if you don't carry a balance, they don't cost you a cent! I won't let a little inconvenience stop me from taking my business elsewhere.

Way to stand up for yourself and the rest of us, Kate! -- lfk.

I've yet to see anything objective laying out HOW various market segments will be affected: how many of the frequent and high balance users so ready to jump ship will even be charged an annual fee?

The first report on this seemed to imply the fee applied to LOW and NO balance users.

Can we get some facts on what BOA (and the other CC issuing banks) is proposing?

Yeah. I'd cancel too. In fact, since I fit into the category with my BoA cards I guess I'll need to cancel them though I've not yet received that notice.

Hal (GT), BoA is only starting to charge a small percentage of cardholders the fee thus far, so you might not be affected. But the target group appears to be those who pay off their balance in full each month or rarely incur late fees. --- lfk.

Look where this trend is going. I can assure you if all the banks get together they will all begin charging an annual fee and guess where that leaves us. Boo BOA. I have been a customer for over 20 years.

I have one of the BOA cards that are now being charged a fee. I have had it since i was in college, and I was one of those awful people who paid if off monthly and only used a handful of times a month (like my dad taught me). I called last night and cancelled the card. They can forget me paying a fee, when I have been a good customer.

Isn't BoA making money off of all of the transaction fees vendors must pay when we pay for their wares via credit cards? If that's the case, then BoA is still making money off of those of us who pay our balances in full each month, just not as much as someone who carries a balance month to month. So, they're argument for not making money off of the responsible cardholders is bogus.

. I am one of the 1% of Bank
of America credit card customers who received a notice
that henceforth I would have to pay a $39 annual fee. I had
maintained that account (unblemished, I might add) for 15
years and cancelled it by return mail.

I don't think it will have a significant impact on my credit score
(well explained by your column) but frankly I would still cancel
the account even if there was a negative impact. Why would
anyone in their right mind pay a bank in order to be abused by it?

Where is the poll options for "any/all of the above"???

Marian, sorry not to include that option this time. Rest assured, we've noted where you stand. :] --- lfk.

Fees will become a thing of the future. You can thank Washington for this. The Credit Card Act they passed on behalf of the American people is the culprit. If you are unaware, our government was graciously given the banking institutions 6 months notice before this bill is enacted thus allowing our banks time to figure out a way around the bill before it is enacted. How nice of our government. Had they really wanted to help the people, the bill would have become effective immediately. They were aware this is how the banks would respond. I bet, come March 2010, the government will be blaming the banks and telling us "we did everything we could to help". That is a lie which has become common place in this administration. They knew what would happen and made sure the banks had a way out.

You are exactly right, Donna. The Government knew the banks would do this. The new laws against the CC companies should have taken affect immediately upon signing.

If necessary I will work on a cash basis-I will not pay a fee for a credit card balance that is paid on time every month.

I had a VISA and a MC, both with no annual fee and the VISA has a reward program. I do pay off my credit card balances in full every month.

In response to articles a few months ago about the possibility of banks charging annual fees for credit cards, I applied to my credit union for a VISA credit card. Not only does it not have an annual fee but it also offers rewards.

I have been using Bank of American's Credit card that charges annual fee of $30 since almost two years. Can anyone tell me how it is going to affect my credit score if I cancel that credit card and apply for another credit card with no annual feel from Bank of America?

Sam, check Eileen's column on the impact of closing a credit card, where she lists the pros and cons. --- lfk.

I received a letter from those nice CitiBank folks yesterday. They were alerting me that the interest rate on my card would be increasing to 29.99 % as of November 1st. I called to ask how my account of 18 years, which has never been paid late or underpaid, was selected for this increase. This is ONE THIRD of everything I pay will go to interest only. Well, "that is at the discretion of the bank and that information is not made available". I did confirm that not all of their account holders took this hit. I can't believe it. I could of course opt out. I'll be able to use my card at the current rate until it expires next October. Then the account will be closed. This is surely because the new legislation governing credit card companies is going into effect in 6 months or so. You know, where they are prohibited from gouging good customers at will. Well, I opted out. I just wanted to share this outrage about CITIBANK. Please feel free to share what type of organization CitiBank really is, with everyone you know. PS: my credit rating exceeds 750.

My Shell Card from CitiBank - always paid in full and on time - was cancelled last week. Assuming CitiBank people are smart (doubious assumption) and knew they would take the terrible PR hit - they must have a business strategy (also dubious since they recently reported an $8 billion (B) dollar loss, no surprise there).
With that, a business dilemna emerges for Shell - I have been a loyal Shell gasoline customer for three decades. Because my Shell-Citi affinity card was suddenly closed for no reason - I will not purchase another gallon of Shell (lucky that there is a BP station right accross the street) until they offer a satisfactory program with another banking partner. I have written Shell USA President, Marvin Odum, to that effect. I doubt if my modest little $7000 per year protest will have him quaking in his boots - but what if thousands, or hundreds of thousands - of consumers raected to the oil companies in a similar fashion: "give us a credit card program that builds loyalty to your company and we'll buy your product". Perhaps the free market will provide a business incentive and opportunity. There are several oil companies and a lot of credit card companies.

BOA (for me) was opened as Maryland National Bank credit card. Date? 1972. Will cancel in a hearbeat because it looks like loyalty means NOTHING!
38 years? Am looking around now for NO annual fee card. SO, go ahead BOA, loose the payers and take care of the true deadbeats.

If I'm not mistaken, the deadbeats are absolutely the reason they are doing this. Because the government says they can't "gouge" the deadbeats anymore, they have to "gouge" everybody. This is a prime example of "leveling the playing field" where you can't reward good behavior; you can only pamper the bad. If somebody hears of a bank that will NOT be charging a fee, please post it so we can all do business with them.