Some of you may remember that a while back I predicted that credit card issuers would be looking for new fees and other ways to make up for the revenue they are loosing because of the CARD act that protects consumers from outrageous fees. They are doing it.

The on-line trade publications are now warning cards holders of the latest push from the issuers. Commercial Credit Cards, also known as “professional credit cards” are being promoted to just about anyone. The lure, apparently, is that card holders will be excited about the fact that they are eligible for a commercial credit card.

Here is the problem. These commercial cards are not covered by the CARD Act. That gives banks the ability to carry on with their inflated fees just like they did before the law went into full force last month.

These promotions, mostly via direct mail, will have the usual attractive teaser rates. They’ll offer several months of zero or near zero interest rates.

Don’t be deceived. If they are promoting business credit cards or professional credit cards or commercial credit cards, what they are actually promoting is credit cards that do not fall into the realm of consumer protection laws. Avoid these cards.

According to a recent article in Money Talk News, credit card issuers are patting themselves on the back after a new report shows they’ve gotten rid of many “unfair” or “deceptive” practices consumers complained about.

My recent credit card statements have announced how the bank is now “allowing” me to opt in to “overdraft protection.” They don’t mention that it’s now the law, in the hope that I’ll think they are doing it to be nice. They’re also telling me that they won’t raise my interest rates on existing balances. Same deal. It’s now the law, not their great customer satisfaction goal.

The fact is that the CARD Act forced the banks to make these changes. To add to that, the banks are finding other ways to tack on fees to make up for the lost revenue. Watch for these:

We talked about some of the things they pulled before the law went into effect. Now they need to take a different road. Never forget that banks are in business to make money–lots of money. Have you ever seen a less than perfect bank building? Fees that the new federal laws won’t allow will be replaced by others. You can count on it.

I’m sure you’ve seen the sales pitch from your credit card issuer. It’s called credit card insurance or debt cancellation insurance and it sounds like it makes sense. If you lose your job or become disabled and can’t work, the debt on that card will go away. In the current state of the economy and available jobs, it’s tempting. Some of the offerings don’t even sound terribly expensive at $0.75 to $2 per $100.

Take a good look at those numbers.

Suppose the balance owed on your account is $5,000 and you’re paying the cheap $0.75 per $100. You’re going to pay $37.50 per month for that insurance. At the $2.00 per $100 rate your fee would be $100 per month. At least it seems that way but there’s more. Unless you pay that $37.50 to $100 per month insurance fee on top of your normal monthly payment, the fees will be added to your outstanding balance and you’ll be charged interest on it. If you’re paying only minimum payments, there’s a good chance that your outstanding balance will increase instead of getting paid off.

We’re not done yet.

In spite of what the sales pitches lead you to believe, your debt does not get cancelled. If you are out of work, the insurance will only cover your minimum payments. Make no mistake about it; you will still be responsible for the amount of the outstanding balance.

Getting them to pay might not be so easy.

Like any insurance, you are going to have to prove the circumstances that trigger your claim. You can bet it won’t be a matter of a phone call or a note. You’re going to have to prove that you’re out of work and you’re probably going to have to do it every month. By the time you get finished proving this month’s claim you’ll have to start all over for next month.

Is it worth it?

Only you can decide if you want to throw your hard-earned dollars at this kind of insurance but consider this. In 2003, the Center for Economic Justice estimated that consumers paid $2.5 billion for these ‘products’ but card firms only paid out $125 million in benefits. If you already have disability insurance, there’s a good chance that your credit card payments may already be covered. Before you sign on the dotted line for any credit card related policies, crunch the numbers carefully. You already know that card issuers will stop at nothing to get your money. Credit card debt cancellation insurance is just another cash crop for them.

Consider taking the fees you’d pay for the insurance and putting into a savings account where it will accumulate some interest for you and be available to make those credit card payments if you fall on hard times.

The Government thought they were doing us a favor passing the new Credit card legislation. But the banks are haveing no trouble getting around it. To the tune of a 79.9% interest rate. First Premier Bank is doing just that. They have to because in February when the new law goes into effect, they can’t charge $256 in fees on a new $250 credit line.

Don’t believe me. Read the full story here.

Apparently Experian, one of the big three credit reporting agencies, thinks that $14.95 per month is the same as free. The FTC doesn’t agree and is going after them and their FreeCreditReport.com web site and the catchy jingle in their television ads. It’s a classic bait and switch tactic and Experian has been fined $1.2 million over the past five years. My guess is that their income from the bait and switch tactic has been worth it.

If you want a credit report that’s really free, you should go to AnnualCreditReport.com. You can also go to FreeCreditReport.gov, note that it’s .gov not .com, which redirects you to the Federal Trade Commission web site.

Cardholder911 strongly suggests that you spread your free reports over the year and request a credit report from only ONE of the big three every four months. This is normally sufficient protection.

If you choose to go to FreeCreditReport.com and pay $14.95 per month for credit monitoring, then feel free to do so. Just remember that you’re only monitoring one of the big three. Also be aware that you can probably do just as well by looking at your bank and credit card statements every month.