Nearly a year ago I warned that the credit card controls championed by Senator Mark Udall (and subsequently by Senator Michael Bennet) would “punish the responsible” and “make it harder for responsible cardholders to negotiate good terms.”
Well, today my wife and I got a letter from Citibank regarding our credit card with the company:
Effective April 1, 2010, an annual fee of $60 is being added.
The reason we are making this change is to maintain the quality of our service amid the rising cost of doing business [emphasis added]. … Each year, we’ll credit the $60 fee back to your account once you have made $2,400 in purchases…
What great timing! It was just yesterday that Bennet promised people “notices in the mail from their credit card companies notifying them of upcoming changes in their accounts.” That is most definitely a “change,” apparently part of that grander package of “change” we have all been promised.
We’re not going to commit to charging that amount with Citibank every year, and we’re certainly not going to pay a $60 annual fee. Therefore, we’re going to cancel the card, reducing our total credit availability.
While obviously Citibank is not going to finger Senators Udall and Bennet, particularly in today’s vicious political climate for businesses, the most obvious contributer to this “rising cost of doing business” is the Congressional legislation.
Rarely a day goes by when I do not regret voting for that economic illiterate Mark Udall.