Hurt by declines in the housing market, banks are raising fees and interest rates on credit cards, in spite of the opportunity to lower them provided by the Fed's lowered rates, The Washington Post (NYSE:WPO) reported Monday.

In raising fees, consumers find their available cash lessened and spending decreases -- counter the stimulus the Fed's lower rate is meant to provide.

Not everyone is going to get a rate decrease," consumer program director for the U.S. Public Interest Research Group Edmund Mierzwinksi said. "People presume that because the Fed lowers rates, the banks will."

Borrowing slowed to an annually adjusted increase of 2.7 percent in December, down from a 13.7 percent rate of growth reported in November, the Fed reported.

Even customers with good credit have reported rate increases.

"Credit cards historically have been a very profitable segment for the banking industry, so what they're doing is trying to squeeze customers as much as they can, particularly for accounts they don't see as profitable or high risk," one industry analyst said.