‘Shopper’s Misery Index’ Lists Consumer Woes

Shoppers now pay more for their purchases, after they’ve already bought them, as banks are charging higher credit fees.
‘Shopper’s Misery Index’ Lists Consumer Woes
Irea Sotero shops at a Macy's department store in Miami, Fla. Florida Gov. Charlie Crist signed legislation designating a three day sales tax holiday from Aug. 13 through 15, on school supplies, books, clothing, and footwear. (Joe Raedle/Getty Images)
Catherine Yang
12/8/2008
Updated:
10/1/2015
<a><img src="https://www.theepochtimes.com/assets/uploads/2015/09/Shopping.jpg" alt="CONSUMER MISERY: Representatives Carolyn Maloney and Anthony Weiner discuss high fees for consumers despite low Federal Reserve rates, as shown in the Consumer Misery Index. (Catherine Yang/The Epoch Times)" title="CONSUMER MISERY: Representatives Carolyn Maloney and Anthony Weiner discuss high fees for consumers despite low Federal Reserve rates, as shown in the Consumer Misery Index. (Catherine Yang/The Epoch Times)" width="320" class="size-medium wp-image-1774534"/></a>
CONSUMER MISERY: Representatives Carolyn Maloney and Anthony Weiner discuss high fees for consumers despite low Federal Reserve rates, as shown in the Consumer Misery Index. (Catherine Yang/The Epoch Times)
NEW YORK—Shoppers are now paying more for their purchases, after they’ve already bought them. With “unfairly” high interest rates, banks are pushing fees onto consumers, even with the recent financial bailouts.

Representative Anthony Weiner’s “Shopper’s Misery Index” shows that bank and store credit rates and ATM fees have risen. The average ATM fee has risen 28 percent in New York City since 2006, and most also charge an additional average of $1.46 to withdraw money from other banks, a 23 percent increase from the last three years. The average surcharge fee, the fee charged for non-account holders, of the top 10 banks in New York City is $2.04. Just withdrawing money can now cost up to $5.00.

“Consumers now even have to shop around for how they pay,” Weiner said.

The average store credit card rate, 21.85 percent, has gone up 6 percent since 2003. The Shopper’s Misery Index shows the credit card rates of 35 major retail stores in New York City, with Nordstrom’s at 18.90 percent at the lowest and ABC Carpets’ 23.99 percent at the top of the list.

The Wall Street Journal prime rate for the industry dropped from 7.5 percent last year to 4 percent currently, but the Federal Reserve says the average bank credit card interest rate is now 12.1 percent. Capital One Orbitz Visa charges the highest APR, 22.9 percent, while the lowest is Simmons First Visa Platinum at 7.25 percent nationally, and Astoria Federal Savings and Loan Bank at 15.99 percent, despite the fact that the Federal Reserve rate, the basis for credit card interest rates, has dropped from 4.25 percent to 1 percent since June 2006.

Weiner has introduced legislation to disclose point-of-purchase interest rates, grace periods, and annual fees for store credit cards.

“The law of economic gravity doesn’t seem to apply when it comes to shoppers accessing their own money. Banks are crying for billions while pulling more and more money for the pockets of consumers,” Weiner said. “We need to take care of not only Wall Street, but Main Street.”

Representative Carolyn Maloney authored the Credit Cardholders’ Bill of Rights, which passed the House with a 312 to 112 vote.

“We need to put an end to abusive industry practices like double-cycle billing and retroactive rate hikes, which even the Federal Reserve termed unfair, deceptive and anti-competitive,” Maloney said. “It’s outrageous that financial institutions that received billions in taxpayer aid are leaving struggling consumers out in the cold this holiday season.”

However, there are alternative ways for consumers to access their own money. Weiner says online banks such as ING Direct and E*Trade charge no fee for using ATMs at other banks, or reimburse clients for the fee charged by the banks.