Amex - Change in Terms - No Over the Limit Fee

[Anonymous]

I think there's a catch to this NO OVERLIMIT FEES. We'll just have to wait and find out because if they don't charge you over the limit fee, basically your card have no pre-set spending limit regardless.

I am 100% positive there is a catch to it, beside it costs your credit score if you max out your credit line. They could use this as a reason to against all your future credit applications..There is a BIG CATCH TO THIS and I can see it

[Anonymous]

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@Anonymous wrote:

I think there's a catch to this NO OVERLIMIT FEES. We'll just have to wait and find out because if they don't charge you over the limit fee, basically your card have no pre-set spending limit regardless.

I am 100% positive there is a catch to it, beside it costs your credit score if you max out your credit line. They could use this as a reason to against all your future credit applications..There is a BIG CATCH TO THIS and I can see it

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The catch is simple - they are not going to authorize a charge that will take you over your CL. The government mandated opt in program was going to cost them too much to implement. If you don't charge an overlimit fee there is no need for compliance. Going anywhere near you CL now, particularly with AMEX is just asking for trouble.

[Anonymous]

Well if they aren't authorized a charge over the CL, then they should specifically state it in the letter rather than making it more complicated. Credit cards company need to be specific and clear, no fine prints or false advertisement. This is the reason why the credit card bills was signed into law to make it clear for all consumers.

[Anonymous]

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@Anonymous wrote:

Well if they aren't authorized a charge over the CL, then they should specifically state it in the letter rather than making it more complicated. Credit cards company need to be specific and clear, no fine prints or false advertisement. This is the reason why the credit card bills was signed into law to make it clear for all consumers.

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It's not clear to you that they don't have to authorize a charge that exceeds your CL? A CL is not advisory - it is a limit!

[Want2BDebtFreeNow]

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@LynetteM wrote:

Hi all,

I reported on this a few days ago here. When I received the notice, my assumption was that if a charge would put you over your limit you would likely be declined at the point of sale.

Could happen...

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I guess, but if that is the case then why would they have to spend thousands or millions of dollars amending the contract when all they have to do is just decline the charge to start with?

FWIW this wont affect me directly since I am nowhere near my limit, I am guessing that since I do carry a balance it is affecting me in that they increased my interest rate about a month ago, that's probably how they are going to make up for the losses.

[Anonymous]

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@Want2BDebtFreeNow wrote:

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@LynetteM wrote:

Hi all,

I reported on this a few days ago here. When I received the notice, my assumption was that if a charge would put you over your limit you would likely be declined at the point of sale.

Could happen...

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I guess, but if that is the case then why would they have to spend thousands or millions of dollars amending the contract when all they have to do is just decline the charge to start with?

FWIW this wont affect me directly since I am nowhere near my limit, I am guessing that since I do carry a balance it is affecting me in that they increased my interest rate about a month ago, that's probably how they are going to make up for the losses.

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Because publicity is cheaper than advertising? The contract was going to have to be changed anyway,