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Hey All,
I thouht that the new Credit card laws outlawed the over the limit fees that major credits(capitalone for me) can charge?
THis month's statement came today and it looked like we were 2 dollars and change over the limit before the interest and then they add on a 25 dollar over the limit fee.
Can someone explain if this is right or If I need to have a nice chat with Capital One?
Regards,
Michael
Overlimit fees are still allowed, what the law does is not allow them to put you in default APR because you went over the limit (2) then they can increase your APR for going over!
According to WIkipedia, the CARD act mandates that:
Card companies should not impose excessive fees on cardholders.
@vollybal wrote:Hey All,
I thouht that the new Credit card laws outlawed the over the limit fees that major credits(capitalone for me) can charge?
THis month's statement came today and it looked like we were 2 dollars and change over the limit before the interest and then they add on a 25 dollar over the limit fee.
Can someone explain if this is right or If I need to have a nice chat with Capital One?
Regards,
Michael
Yes, it is perfectly legal. I am not certain how it is with Cap One, but I once went $2.00 over my limit a few months agao and (as I frequently do) made a payment right then, and assigned another to post on my payday right before the new statement cut. HSBC has all kind of pop ups in which they are spinning it as "Over the limit coverage". It really is not coverage, it is simply another way to hit the consumer for revenue, because the CC law shot down default APRs.
I would call and ask, maybe they will give it back to you (I don't know, but anything is worth a shot - my guess is no) and in the future monitor the balance and know that you can immediately pay to get under your limit to avoid that $25.00 over the limit fee when the statement cuts. That is what they are banking on, that people go over as to attach the fees in earning revenue.
Hello all,
Thanks for the info. I actually called them and I read on their statements that I have to tell them it is ok to charge me the over the limit fee. So when I called them I was able to get the OTL fee removed and told them I do not want any fees ever charged for OTL. They told me ok and then they told me about a program for over the limit to protect from getting declined when you are about to go over your limit...Umm why would I want that if it allows for going over the limit and charging a OTL fee...Geesh I swear they just read scripts at times. Ok well thanks again for the info.
There are many cases where it is preferrable to pay the OL fee than have a charge declined. Automatic Billing and Travelling for instance. I've opted in on some accounts but not all.