Who’s Affected?
This Article Includes
The fee applies to various retailers, including American Eagle, Dick’s Sporting Goods, J. Crew, JCPenney, PayPal, Sam’s Club, Venmo, and Verizon.
While there are no laws prohibiting companies from charging for paper statements, they must obtain customers’ consent before switching them to digital billing.
For many Americans, especially those who are less tech-savvy, the shift to digital statements can be problematic. Seniors, in particular, may feel uneasy navigating online platforms, while others prefer printed statements to keep track of their finances.
The Impact on Consumers
Business professor Elaine Luther from Point Park University highlighted the risks associated with online statements and payments, such as potential data breaches. Additionally, low-income consumers may struggle with digital payment systems, further complicating their financial management.
Take the example of Alicia Galowitsch and her husband, Mark, who live in Palmdale. They are on a fixed income and carefully monitor their budget.
Alicia expressed her concerns about the new fee: “It’s very tight to where we had to start going to a food bank,” she told NBC Los Angeles. With six credit cards linked to Synchrony Bank, they learned they would have to pay $1.99 for each paper statement, totaling $11.94 a month.
Alicia emphasized the necessity of paper statements for keeping their finances organized. “If I’m not here, the payments are going to be late because Mark’s not going to know what to do. With paper statements, everything is written down for him,” she explained.
Frustrated by the new charges, Alicia reached out to Synchrony Bank to request a waiver, especially given the $450 in interest she pays monthly. “You make enough money on interest; why charge something else?” she asked. While the bank initially stood firm on the policy, NBC’s intervention led to a waiver of the fees for the Galowitsch family.
Broader Concerns About Fees and Online Statements
Chi Chi Wu, an attorney with the National Consumer Law Center, voiced her concerns about charging for paper statements, labeling it as unjust.
She explained how online-only statements can lead to missed payments: “People just overlook the email that tells you you’ve got a statement. They don’t open it up, don’t go to the website, or maybe they forgot their password, and they miss a payment. Now you’ve got to pay a late fee.”
Discussion around the $1.99 fee has sparked conversations on platforms like Reddit, with some users expressing frustration. One user wrote, “Closing my account,” citing not only the paper statement fee but also a nearly 32% interest rate hike.
The Bigger Picture on Rewards and Inflation
In addition to the paper statement fee, a recent report highlighted a gradual decline in the value of credit card reward points due to inflation.
Although a point redeemed through online banking has historically been valued at around one cent, inflation has reduced that purchasing power by about 20% since 2018, according to the Bureau of Labor Statistics. This means that if you accumulated 50,000 points in 2020, they are now worth only about 41,300 points.
As credit card users navigate these new fees and changing rewards, staying informed and proactive about your financial options is essential. Whether you prefer paper statements or digital billing, understanding the implications can help you manage your finances more effectively.
