With the advent of the CARD Act, many credit card companies had to put on the brakes when it came to over-the-top fees and charges. However, like any other legislation, credit card companies found their share of loopholes and are, once again, hitting customers with new and quite inventive charges. Enter the inactivity fee.
What is an inactivity fee?
An inactivity fee is a new fee that many credit card companies are employing to encourage customers to either start spending or risk losing their account. In short, the CARD Act put a serious dent in the wallets of the credit card companies; in response, they began cutting the dead weight, so to speak. In other words, they are now looking to cut ties with those customers who held a credit card, but did very little spending on it.
Why are credit card companies charging this fee?
Because of the CARD Act, and the poor economy of the last, few years, fewer people have been using charge cards.
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