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usmc58555
Posts: 1,673
Registered: ‎02-18-2009
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Re: Crap 1 called me with an "opportunity" to opt in on over the limit fees.


txjohn wrote:

 

Your examples, IMO, are not apples to apples.

 

You failed to address that most banks would not allow you to OPT OUT of OL authorizations.  And while it is the responsibility of the consumer to avoid such occurrence, the ONLY reason banks did not provide a method to prevent it was because the fees were far too profitable to do so.

 

I was an E-3 in the barracks without a car.  I went through Bankruptcy in 1998 due to reasons I won't get into at this time.  I have 6 children and have worked very hard to get where I am.  And it is following SOUND FINANCIAL PRACTICES that got me there....and the OL fees you are advocating are not inline with sound financial principles. 

 

By your logic, you should be advocating lottery tickets and slot machines as well....after all this COULD potentially be of benefit IF they happen to win, after all some lucky dog is going to win, and the consumer is responsible for themselves.  I'm not asking to outlaw the slots, I'm just not advocating it as a wise decision or use of funds when there is little or no discretionary income or cash.

 

By getting a $10 "loan" in the form of an OL fee for a cost of $39 fee is most likely going to worsen the financial position of the individual, not help it.  If a person can get a credit card, they probably can get a payday loan.

 

While you banter the possible benefits you still have failed to address the wisdom, financially speaking, of such a fee.  You have often posted about not incurring interest.  To not buy more car than can afford and denounced unwise credit decisions....yet you are now suggesting that this is potentially a wise decision.

 

Please describe for us, when you feel this would be a useful fee to incur and worth the cost.  This is my last post, as I'm don't like arguing with the devil's advocate, which is exactly what you are doing....because you have far too often argued the other side of financial wisdom on too many occassions. 

 

This discussion was never about a right to charge  fee, it was about the wisdom of opting in and agreeing to pay one for the mythical benefit of an OL charge.  You say it is useful to some....I ask to who?  I believe it is a myth and sales pitch on the benefit and not a real benefit and I highly recommend people to avoid the opt-in.  I'd be interested in hearing of anyone who had a CapOne subprime card who got an OL authorization for more than say $50.  And anyone who did I am suggesting is an exception to the rule, and not the rule itself.

 

 


I AM NOT EFFING ADVOCATING THE FEES.

 

I am advocating the "potential" to go over your limit. the fees are secondary. If you do not opt in to be charged the fees you CANNOT go over your limit.


As I stated in my posts there are many situations right now where people with Low limit cards, or "relatively" low available CLs could use the ability FOR APPEARANCES SAKE, of being able to go over your limit, and be charged a fee, but once transactions and payments post they are never actually over their limit, they will never be charged a fee.


1- Go to Wal Mart, buy a TV on a credit card. take it home and realise immediately same day that you bought the wrong one it does not have some stupid feature you want. take it back. You never even took it out of the BOX and they credit your card.

 

unfortunately until the transactions reconcile that amount of credit is eaten up until it all shakes out the next day.Try to buy a new one you originally wanted that day and be 10.00 over your CL and if you have opted out the transaction will NOT be approved until the original purchase and credit all post.

yet if you have opted in, to be charged a "fee" the  transaction will probably go through, for appearances you are over limit, but since they have not POSTED you are not, when they all post the next day you are good, no fees were charged even though for appearances you went over limit.

 

2- have a low limit Chase card, $300 CL that a lot of my bills are linked for rewards. Me cell phone payment gets "pending" on the 19th, but never posts until the 21st.

before in the past I have made cash payments to Chase on the morning of 19th to ensure  freed up amount is available for the transaction. I never had a problem until recently. Now that I have not "opted in," a cash paymet made the evening of the 18th will not free up my credit line until the 20th to pay my cell bill on time. Where before in the past it was never a problem because they COULD CHARGE ME AN OVER LIMIT FEE, now it does not happen at all.


regardless of holds, pending payments, credits, transactions NOTHING GETS APPROVED at any time I might go over the limit even though when everything gets posted there will be NO OVER LIMIT....EVER.

 

I used to be able to run $1,800 a month through my Chase card, paying cash in many cases at the branch that same day, NOW I cannot.

 

For me it simply means I do not get the ability to accrue rewards as in the past.


BUT I can easily see, with the vaguaries of payments processing and crediting, transaction Holds, hold amounts and accounts reconciling how a LOT of people are going to have rude surprises.

 

3- rent a car late friday for a week. the rental company puts a hold on the expected amount of the weekely rental, Turn the car in on Thursday night after using 2 card swipes at a pump to fill the whole tank up. pay the rental off with the same card. you had a 1000 credit line, but with the initial hold still on the card, the actual payment charged on the card, and the gasoline holds, you have only $180 of available credit until it all posts/falls off, even though you only charged $310. If you have opted in you can continue to charge and even go over limit. If not well hopefully nothing happens where you need more then the 180 available until it all posts/falls off.

 

4- use your CC at a restaurant, one person seperate checks, party of 15. When processing all 15 checks the server makes a mistake and accidentally puts the whole bill on your card. They immediately credit it and generate you a correct billing for the 21.00 of your lunch. Guess what? to the CCC you have not only the $27.00 hitting your account but the original $425 until it all shakes out, hopefully the next day. Later that day you try to swipe at a pump to get gas, because you did not opt in, you are not getting gas approved. (but you would if they could charge you an overlimit fee)

 

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haulingthescoreup
Posts: 28,115
Registered: ‎04-01-2007
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Re: Crap 1 called me with an "opportunity" to opt in on over the limit fees.

usmc, I can see the point of being allowed to go OTL in such situations, but I believe that one point that txjohn and others were making is that typically, Cap One won't approve a significant figure over the limit, unless perhaps one has one of those elusive high-limit Cap One cards.

Yes, it's great to have a card that will allow you to do this. The question is whether Cap One will follow through, or merely allow a token over-limit charge that is less than the fee that they will then collect.

If a lender will help me out of an emergency situation by letting me go significantly OTL, then I will gratefully pay the fee. But if they "allow" me to go OTL, but not enough to truly help in an emergency situation, then that appears predatory, or at least deceptive, to me.
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txjohn
Posts: 4,214
Registered: ‎09-12-2008
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Re: Crap 1 called me with an "opportunity" to opt in on over the limit fees.

[ Edited ]

haulingthescoreup wrote:
usmc, I can see the point of being allowed to go OTL in such situations, but I believe that one point that txjohn and others were making is that typically, Cap One won't approve a significant figure over the limit, unless perhaps one has one of those elusive high-limit Cap One cards.

Yes, it's great to have a card that will allow you to do this. The question is whether Cap One will follow through, or merely allow a token over-limit charge that is less than the fee that they will then collect.

If a lender will help me out of an emergency situation by letting me go significantly OTL, then I will gratefully pay the fee. But if they "allow" me to go OTL, but not enough to truly help in an emergency situation, then that appears predatory, or at least deceptive, to me.

 

Thanks, HTSU....I am glad that my point was not totally lost.

 

CapOne will NOT authorize $425 OL or any other amount of significance (personal experience), especially builder low limit cards.  

 

I fail to see how getting $25 in gas for a $39 OL fee (plus the $25 charge) is a good deal.  Each scenario given is better dealt with having a second card.  You never know when there may be a fraud hold on a card, an unplanned or mistaken charge or other problem.  Having a second card or backup card is always the best plan.  I would rather have a second $75 AF builder card then pay big OL fees. 

 

IMO, I recommend NOT opting in to this "option" but to carry a backup card, debit card, cash or combination to offset emergencies.  If you can get a low limit CapOne, you probably can also get an Orchard, FP, possibly Juniper or other builder card.  Keeping balances low and using the cards as "emergency" and not carrying balances is the generally accepted "good policy" on this board.  Suggesting an OL as a good alternative seems to me, IMO, to be of very, very limited benefit.

 

 

 

 

 

Message Edited by txjohn on 11-07-2009 05:17 PM

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Senior Contributor
score_building
Posts: 3,553
Registered: ‎01-10-2008
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Re: Crap 1 called me with an "opportunity" to opt in on over the limit fees.


haulingthescoreup wrote:
usmc, I can see the point of being allowed to go OTL in such situations, but I believe that one point that txjohn and others were making is that typically, Cap One won't approve a significant figure over the limit, unless perhaps one has one of those elusive high-limit Cap One cards.

Yes, it's great to have a card that will allow you to do this. The question is whether Cap One will follow through, or merely allow a token over-limit charge that is less than the fee that they will then collect.

If a lender will help me out of an emergency situation by letting me go significantly OTL, then I will gratefully pay the fee. But if they "allow" me to go OTL, but not enough to truly help in an emergency situation, then that appears predatory, or at least deceptive, to me.

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marty56
Posts: 5,679
Registered: ‎10-06-2007
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Re: Crap 1 called me with an "opportunity" to opt in on over the limit fees.

A few years ago, if you wanted to go OTL on your debit card and had overdraft protection, the ATM would warn you that a fee would be involved and then ask if you wanted to continue.  I dont see a practicle way to do that with a credit card.  I can also see Captiol 1 and others doing CLDs so they can be positioned into having to pay that fee and I also see them less likely to do CLIs for the same reason.

 

Capitol 1 has a long history of doing anything and everything to collect fees from their customers.  Their giving people 3 CCs with 500 CLs each rather than 1 1500 CL card was a prime example.

 

While I dont consider anything a CCC does as preditory, lets just say they know people too well.

 

LOL I closed my 300 limit Capitol 1 card 4 years ago when they wouldnt give me a CLI saying that "type" (subprime) of account didnt qualify for one.  The other day I got a pre-approval for one of their big game type of cards.  It flew into the garbage can.  I guess things have changed.  Can't wait for a BofA  letter.  It wont meet the same mericfull fate.  Its gonna go back to them via the bathroom.

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