Faced with rising delinquencies and charge offs, banks are raising fees on credit card accounts. The increased fees are charged for late payments, over limit borrowing and annual membership. USA Today reports that 2009 income for these fees will be a record $20.5 billion. Banks are raising rates now since Federal regulations take effect next year which will limit banks ability to raise rates on existing accounts.
All of this is no help to individuals struggling to make payments on existing debt and stands in contrast to the the actions of the Federal Reserve which has cut rates to stimulate the economy.
