Beating Broke

3 Major Credit Card Issuers Facing Lawsuits Over Hidden Fees

January 28, 2025 By Teri Monroe Leave a Comment

Lawsuits over hidden credit card fees — Image Source: Pexels

Credit card companies and banks often tack on extra fees to the consumer that sometimes we aren’t even aware of. Recently, there has been a crackdown on these hidden fees from regulatory bureaus and lawsuits. Many of these lawsuits over hidden fees have been settled and regulations have gone into effect putting money back in the pockets of Americans. Read on to find out about some of the hidden fees consumers were being charged by major credit card companies and banks.

ATM Fees Lawsuit

Visa and Mastercard have recently settled a lawsuit for inflating fees at ATMs. Claims were made that additional ATM fees imposed by banks associated with Visa and Mastercard networks were not clearly disclosed, court records show. The fees, called surcharges, happen when customers use ATMS outside of their bank’s network. The lawsuit was settled for $197.5 million.

Merchant Fees

A lawsuit was brought against Visa and MasterCard claiming that the credit card company overcharged retailers on interchange fees, or swipe fees, when patrons used credit or debit cards. Additionally, it prohibited retailers from directing customers toward other means of payment. The case resulted in a $5.5 billion class-action settlement.

Junk Fees

In March of 2024, The Consumer Financial Protection Bureau (CFPB) finalized a rule to cut excessive credit card late fees. The CFPB lowered the typical late fee from $32 to $8. This rule change will save Americans more than $14 billion a year. The ruling is currently being challenged in the court system with credit card companies arguing that reducing late fees punishes consumers who pay on time.

Undisclosed Financing Fees

In 2018, Wells Fargo was sued by a Texas jewelry company for encouraging hidden fees to customers in its financing program. Wells Fargo told retailers to build financing fees into the price of goods and advertise interest-free financing. But what customers may not have realized is that they could purchase the same item for much less with cash and avoid the built-in almost double-digit interest fee. Ultimately, the lawsuit was dismissed.

Protecting Yourself Against Hidden Fees

As a consumer, it’s important that you are aware of charges to your accounts. Remember, always read the fine print when signing up for a credit card or loan. Some credit cards will try to sell you on add-ons when you sign up. For example, some companies will pitch you identity monitoring services or credit protection. Other additional fees to look out for are foreign transaction fees, cash advance fees, and balance transfer fees. The Credit Card Act of 2009 protects consumers against hidden fees. It also requires credit card companies to increase transparency around credit card terms.

Ultimately, if you see a charge on your credit card or bank statement that you don’t recognize, you can dispute it. Additionally, you can file a complaint with the Consumer Financial Protection Bureau (CFPB) if you believe you’ve been charged an excessive fee.

Do any of these lawsuits over hidden fees surprise you? Let us know your thoughts in the comments.

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10 Game-Changing Financial Management Tools You Need Right Now

January 23, 2025 By Teri Monroe Leave a Comment

Without the right tools at your disposal, managing your finances can be unnecessarily difficult. There are many tools to help you reach your goals, make financial planning more enjoyable, and teach financial literacy. Here are 10 financial management tools that are absolute game changers.

1. Financial Calculator

Why do everything by hand when you can have the help of a financial calculator? This financial calculator from Texas Instruments solves time-value-of-money calculations such as annuities, mortgages, leases, savings, and more. Customers give this calculator 4.6 stars on Amazon and love how reliable it is.

2. Budget Planner

Financial management tools budget planner — Image Source: Amazon

If you prefer budgeting by hand rather than digitally, a budget planner is a must-have. This budget planner helps you take control of your finances by keeping track of your daily spending, expenses, financial goals, savings, and debt. Customers find it simple to use and convenient with a quality design.

3. 100 Envelopes Savings Challenge Organizer

100 envelopes saving challenge binder — Image Source: Amazon

Have you heard of the 100 envelopes savings challenge? This fun savings method can help you save $5,050. With this 100 envelopes binder, you’ll be able to stay organized as you save money. Customers on Amazon give the binder a 4.7 rating and say that it is a simple and fun way to save.

4. Savings Box

Financial management tools savings box — Image Source: Amazon

This wooden cash vault is perfect for teens or adults to track their savings. You can choose between a variety of dollar amounts that you’d like to save. The box then displays different amounts that you can mark each time you put money in the cash vault. The box is much more attractive than a piggy bank and lets you see your progress easily.

5. Weekly Spending Tracker

If you don’t know what money is going out, it’s hard to manage your money effectively. This simple weekly spending tracker can help you and your family see exactly how your money is being spent.

6. Savings Challenges Book

If you’re looking for ideas on how to reach your savings goals, this savings challenges book can give you the inspiration you need. Customers on Amazon give it a 5-star rating and say that the challenges make saving money both practical and fun.

7. Quicken Software

If you want to save time managing your finances, Quicken software can help you. Quicken can be purchased through Amazon and updated every year for a great price. With Quicken, you can connect all of your accounts, debt, and investments. The software will help you manage & grow your savings, create custom budgets & track spending, and project different debt scenarios.

8. Debt Payment Planner

Is one of your goals to get out of debt? Some people need extra motivation to pay down their debt. With this debt payment planner, you can use the snowball or avalanche to pay off debt.

9. Credit Score Journal

If you’re paying off your credit card debt, you may want to track your credit score progress with the credit score journal. This way you track where you’ve been and how far you’ve come.

10. Financial Literacy for Kids

It’s never too early to start teaching kids about financial literacy. These financial literacy flashcards are a game changer for young adults. Customers gave this 110 flashcard set 5 stars with many saying that the explanations are simple and easy to explain. Plus, money lessons become family fun time thanks to these flashcards.

How do you manage your money? Do you have any game-changing financial management tools that you use?

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6 Tips You Should Know to Keep Your Credit Balance From Impacting Your Credit Score

January 21, 2025 By Teri Monroe Leave a Comment

managing credit balances — Image Source: Pexels

If you’re not in a position to have zero balances on your credit cards, how can you keep a credit balance from impacting your credit score? Managing your credit balance and credit score is a delicate balancing act that takes knowledge and strategy. Here are the tips you need to know to improve your credit score, even when you have credit balances.

1. Pay More Than Your Minimum Balance

Just paying minimum balances every month will not only increase the time it will take you to pay off your credit cards due to interest, but it also won’t help your credit score. Instead of just paying your minimum balance each month, make payments throughout the billing cycle. This way, these smaller balances on your card will be reported to credit bureaus.

2. Pay on Time

This may seem obvious, but late payments will negatively impact your credit score. On-time payments make up 35% of your FICO score and it’s hard to come back from too many missed payments. If you’re struggling to make payments on time, contact your credit card companies as soon as possible. You may be able to negotiate a payment plan.

3. Keep Your Credit Utilization Low

Keep credit utilization low when you have a credit balance — Image Source: Pexels

Credit utilization is the ratio of your debt to available credit. This number accounts for 30% of your FICO score. Because of this, it’s usually not beneficial to just move debt around to one card and close other accounts. Your credit utilization will still remain the same. Instead, focus on paying off your credit balances.

4. Don’t Close Accounts

Even if you pay off some of your credit cards, don’t close the accounts. This short-term strategy to boost your score, won’t help you in the long run. Closed accounts can lower your score and impact your credit history. Plus, closed accounts still show up on your credit report.

5. Try and Increase Your Limit

Increase your credit limit — Image Source: Pexels

Calling your credit card companies and asking for a credit increase can help increase your credit score. Make sure to update your income information to increase your chances of an increase. Having more available credit will help boost your score. However, this doesn’t mean that you should open several new accounts to try and boost your score. This will actually have the opposite effect because each new account will trigger a hard inquiry on your credit report, lowering your score.

6. Take Advantage of Opportunities to Boost Your Score

Did you know that on-time payments on bills like utility bills, cell phone bills, or rent payments can help boost your score? You can try services like Experian Boost that take these payments and report them to increase your credit score. When you have balances on your credit cards, these creative ways to increase your credit score can make a big difference.

Managing a Credit Balance

Just because you aren’t debt-free doesn’t mean that you can’t have a good credit score. By managing your credit card balance wisely, you can increase your credit score and make smart financial decisions. It’s always a good idea to create a plan that will help you pay off your credit card debt.

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