Anyone else get a call from Capital One for "voluntary opt-in" to OL fees?

[Anonymous]

Just got a call from Capital One, wanting to explain some "changes taking place in February 2010" due to new federal regulations.

The whole gist of the call is that after the new regs are in effect, Capital One won't be allowed to authorize or pay a charge which takes me over my limit.

However, they wanted to graciously offer me the ability to "opt in" to keep this "over the limit" option available "in case of emergencies" and as part of this offer and option, they will lower the over the limit fee from $39 to $29.  She explained this was to protect me in the event of an emergency that I needed to access my card for amounts above my limit, and I would "enjoy a reduced over the limit fee."

I chuckled to myself and DECLINED the offer to opt in.  Obviously CapOne isn't going to authorized a substantial charge above my CL...that would be declined.  But they are always oh so willing to let you go $9.37 over and then charge you an OL fee 4-5x the OL amount. 

This solicitation goes to prove how much of a profit center OL fees must be now that they are actually firing up their call centers to solicit voluntary opt-in to allow CapOne to authorize a charge above the CL and then charge an OL fee.

I wonder how many people will fall for this "benefit?"  I hope none....but I'm sure many will.

Message Edited by txjohn on 10-23-2009 01:18 PM

[Anonymous]

You joke like they're trying to scam you into paying fees, but in fact they are required by the new legislation to offer the option to opt-in to all customers.  Some people do consider this a convenience, say if they only carry one card and don't want to risk being stranded.

[smallfry]

Got 2 calls from Cap One the last 2 days for my SO. Thought it was something like this.

[Anonymous]

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@Anonymous wrote:
You joke like they're trying to scam you into paying fees, but in fact they are required by the new legislation to offer the option to opt-in to all customers.  Some people do consider this a convenience, say if they only carry one card and don't want to risk being stranded.

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No one said they had to fulfill their obligation by telephone call and no one said they had to cast it in terms of doing you a huge favor. In Cap1's case it is in keeping with their modus operandi - they always have persued whatever policy will allow them to generate the maximum amount of fee income.

[Anonymous]

I don't have a capital one card but I got exactly the same call from Penfed for both of my Penfed cards and my wife's two cards. Penfed has stooped to new levels of low. Garbage companies.

[Anonymous]

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@Anonymous wrote:
You joke like they're trying to scam you into paying fees, but in fact they are required by the new legislation to offer the option to opt-in to all customers.  Some people do consider this a convenience, say if they only carry one card and don't want to risk being stranded.

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There is a reason this is a part of the new regulations.  And the reason is that many, many, many consumers have tried to request to various banks and CCC's to please decline any charge that would put them OL or overdraft their account (in the case of debit cards).  And many CCC's have been unwilling to allow a consumer to create this account decline option.

While it is true that a customer is responsible for maintaining proper account balances and not going OL, it is the reality that often many consumers go OL or overdraft by mistake and would have preferred the bank to decline the charge.

How many people have experienced having a bank/ccc graciously authorize a small charge or debit, then hit the customer with a huge fee....the fee being larger than the amount allowed OL or over draft.

And by not allowing a customer to say "Please decline any charge which puts me OL" is what precipitated this portion of the new regs.

Finally, OL is not really an account option.  It is completely at the CCC's discretion on whether to authorize above CL.  The consumer cannot actually plan or expect the CCC to always provide the "benefit."

I just found the call informative and telling in just how much the CCC's must make on these fees if they are willing to spend the time and money to call every customer on the phone and actually "Sales Pitch" the benefits and try to convince consumers to consent.  This was not a "disclosure" call, this was a sales call just like when they call me to try and sell me credit montoring, credit insurance, ID Theft protection and all the other assorted offerings that are profitable to them.

I am not opposed to them making a profit.  I hope they do.  I just don't personally wish to pay for this "benefit" offered.  I prefer to live within my CL. 

[Anonymous]

i just got this phone call from COne. I asked them to send me this new regulation on paper or PDF. Another trick of CO is they 'misplace' the paper bill then charge you late fee. I am getting a new card from my own Bank anyways. CO did help me get some credit (because I have never ever owned a credit card until I was 40. I haev absolutely no debt 0 debt) but it is time to move on.

[Anonymous]

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@Anonymous wrote:
i just got this phone call from COne. I asked them to send me this new regulation on paper or PDF. Another trick of CO is they 'misplace' the paper bill then charge you late fee. I am getting a new card from my own Bank anyways. CO did help me get some credit (because I have never ever owned a credit card until I was 40. I haev absolutely no debt 0 debt) but it is time to move on.

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Welcome to the forums.

There was a change to the handling of OL's and OL fees included in the Credit CARD Act of 2009. I include the text for you here:

‘(k) Opt-in Required for Over-the-Limit Transactions if Fees Are Imposed-

‘(1) IN GENERAL- In the case of any credit card account under an open end consumer credit plan under which an over-the-limit fee may be imposed by the creditor for any extension of credit in excess of the amount of credit authorized to be extended under such account, no such fee shall be charged, unless the consumer has expressly elected to permit the creditor, with respect to such account, to complete transactions involving the extension of credit under such account in excess of the amount of credit authorized.

‘(2) DISCLOSURE BY CREDITOR- No election by a consumer under paragraph (1) shall take effect unless the consumer, before making such election, received a notice from the creditor of any over-the-limit fee in the form and manner, and at the time, determined by the Board. If the consumer makes the election referred to in paragraph (1), the creditor shall provide notice to the consumer of the right to revoke the election, in the form prescribed by the Board, in any periodic statement that includes notice of the imposition of an over-the-limit fee during the period covered by the statement.

‘(3) FORM OF ELECTION- A consumer may make or revoke the election referred to in paragraph (1) orally, electronically, or in writing, pursuant to regulations prescribed by the Board. The Board shall prescribe regulations to ensure that the same options are available for both making and revoking such election.

‘(4) TIME OF ELECTION- A consumer may make the election referred to in paragraph (1) at any time, and such election shall be effective until the election is revoked in the manner prescribed under paragraph (3).

‘(5) REGULATIONS- The Board shall prescribe regulations--

‘(A) governing disclosures under this subsection; and

‘(B) that prevent unfair or deceptive acts or practices in connection with the manipulation of credit limits designed to increase over-the-limit fees or other penalty fees.

‘(6) RULE OF CONSTRUCTION- Nothing in this subsection shall be construed to prohibit a creditor from completing an over-the-limit transaction, provided that a consumer who has not made a valid election under paragraph (1) is not charged an over-the-limit fee for such transaction.

‘(7) RESTRICTION ON FEES CHARGED FOR AN OVER-THE-LIMIT TRANSACTION- With respect to a credit card account under an open end consumer credit plan, an over-the-limit fee may be imposed only once during a billing cycle if the credit limit on the account is exceeded, and an over-the-limit fee, with respect to such excess credit, may be imposed only once in each of the 2 subsequent billing cycles, unless the consumer has obtained an additional extension of credit in excess of such credit limit during any such subsequent cycle or the consumer reduces the outstanding balance below the credit limit as of the end of such billing cycle.