Comments on: Credit Card Overlimit Fees Taking a Hike?

By: Rob

Rob — Wed, 25 Jan 2012 14:58:51 +0000

Craigs comment reminds me of a guy i know that is always saying stuff like that.

This guy never buys anyone a pint down the pub either!!

By: Amy

Amy — Sun, 13 Sep 2009 15:59:15 +0000

Okay, I have a question regarding the “overlimit” fees. I have a credit card that was under the limit (only $11 under the credit limit, but still UNDER the credit limit) and thus was charged an “overlimit” fee of #35, (again, even though my credit limit was NOT over the limit)…however this “fee” then took my balance over the limit (because of the “overlimit fee”. This does NOT seem legal and I am outraged. I know that I need to pay off the whole balance and plan to do so asap, but again, I was NOT over the limit and am really angry and frustrated with this charge when I made sure I was NOT over the limit.

Advice??

By: DDFD at DivorcedDadFrugalDad.com

DDFD at DivorcedDadFrugalDad.com — Mon, 17 Aug 2009 16:23:16 +0000

Banks pull this scam too.

By: Joe

Joe — Thu, 13 Aug 2009 01:05:00 +0000

Unfortunately, it’s not just people that are close to their limits that are affected by this.

Credit cards can, of course, choose to lower a person’s credit line whenever they’d like. In fact, as I found out, they can also lower your limit below your actual balance. The following month, if you don’t pay down more than the difference, you get slammed with the penalty.

Of course, the simple solution would be to pay the difference. Of course, the credit card companies also rely on the fact that they don’t need to give you any special notification that your credit line changes on any whim and you don’t inspect the line itself every single month.

It’s a dirty trick. Nickle and diming people out of a $39 fee, though, adds up on a large scale.

By: Squeaky

Squeaky — Wed, 12 Aug 2009 22:24:39 +0000

I’m about to fire Chase Cards for unilaterally taking away my entire spending limit. I need a high spending limit in case I have to travel on short notice due to an overseas family emergency. It doesn’t happen often, but when it does, it’s an emergency. I need to react, and generally the appropriate reaction requires more than what’s stashed in cash reserve (or available via ATM). Stewing for three days waiting for money to be transfered out of the money market or stock to be liquidated, or waiting for the banks to open the next business day, is not an option. So the next best thing to walking around with several thousand dollars in cash 24×7 (instead of having that cash draw interest) is access to emergency credit.

Anyhow, I had one such credit card and to keep it active I used it for gas, utilities, phone, and groceries. After several years of this I just got a notice saying that the “spending limit” represented the maximum balance a person could carry, but that the issuer reserved the right to refuse any charge at any time for any reason.

Although I never carry a balance I’ve had my card frozen twice so far this year for “suspicious” but normal purchases. Since when is a regular scheduled monthly phone payment OK for three years but suddenly “suspicious” when it falls on the same day as a gasoline purchase?

Calling the customer service line and telling them never to freeze my account again had no effect: they explained they were trying to “protect” me. Baloney: humiliating me at the gas station or freezing my access to capital while I’m traveling out of town is not “protection”. It’s the exact opposite. They’re trying to avoid holding up their end of the contract.

Since the only reason to have a credit card in the first place is to have access to reliable payment without carrying cash, the fact Citi just declared itself unwilling to honor purchases reliably means that they rendered themselves useless. I mean, even more useless than they were before and that’s saying something.

They just haven’t been the same since the bailout. Of course, when you can forcibly gouge millions or billions out of the taxpayers by paying off the right lobbyists, there’s no further need for customer accountability. Or customers.

By: paul

paul — Wed, 12 Aug 2009 19:19:25 +0000

well captial one just charged me GBP 12.00 for being GBP 4.00 over my limit. GBP 3.00 of that was a cash advance fee and the remaining pound was a result of them recently pushing up their interest rates!! I do agree with the comments about knowing what to expect if you ride near your limit but i was just about to go over it again because i didnt know about the last fee being added as my current statement hadnt been issued.

By: Dave

Dave — Wed, 12 Aug 2009 18:00:43 +0000

#5 Craig, You are right, you also sound condasending, not helpful.
I would sugest line up another line of credit, with a different company, do the research to find out who owns who so as not to just use a different branch of the same, if you can, call the one you have, try to get it changed, if they won’t, tell them you will be closing your account with them for that reason, and do it, then tell everyone you know not to bank with them.
Erica, very useful

By: Erica Douglass

Erica Douglass — Wed, 12 Aug 2009 16:36:41 +0000

Visa Signature cards apparently act differently. I went overlimit about a year ago on my Chase Freedom card. The additional transactions were approved and I was NOT charged an overlimit fee. Apparently this has something to do with the “no pre-set spending limit” deal on Visa Signature cards.

-Erica

P.S. Jodi, you should try to get a loan through Lending Club. Frugal Dad can email you a link.

By: Bill

Bill — Wed, 12 Aug 2009 16:19:39 +0000

No credit card, no problems. Why would you be clients of companies that act this way?

By: Craig

Craig — Wed, 12 Aug 2009 15:50:53 +0000

All comes down to responsibility. You shouldn’t even let yourself get in that situation to begin with. Credit card companies make so much money on interest rates and over draft, and they will continue to unless you become more responsible and don’t go over the limit.