Any consumer who would accept this pitch and have the ability to go over the limit shouldn't own a credit card. In fact, they should be beat with the fiscal responsibility baseball bat.

I'd rather grovel to family members, HELL, even strangers before go over the limit on my cards due to an emergency, even worse- due to a woot-off!

5 replies

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Verucalise (Est.February2008)

@Verucalise(countingcalories): (of course, to clarify, I do understand that the company can allow you to go over the limit, but they cannot charge you after that date. But the way they describe it in their pitch says otherwise)

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GitEmSteveDave_ Natural H1N1 Cure

@Verucalise(countingcalories): What would you do if you lost a BOC because your card was declined?

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Skipweasel

@GitEmSteveDave_ Natural H1N1 Cure: BOC?
Can't find anything that might be suitable here...
[en.wikipedia.org]

Except Bump of Chicken, I suppose.

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jik

@Verucalise(countingcalories): I don't really understand why you think it's so evil for someone to knowingly go over their credit limit.

If I need a lot of money quickly in an emergency, and putting it on my card is the fastest and easiest way to get it, and I know when doing so that I'm going over my credit limit and I'm going to be charged an overlimit fee, then it seems perfectly reasonable for me to have that choice.

Going over one's limit is not ipso facto proof of financial irresponsibility.

What the CARD Acts makes impossible is for people to *unknowingly* go over their credit limits and get charged a fee without realizing it. With that regulation in place, people can make informed decisions about whether to exceed their limit.

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Verucalise (Est.February2008)

@jik: It's only evil when people with an obsessive-compulsive buying problem do this.

@GitEmSteveDave_ Natural H1N1 Cure: I'd cry and bury my face in some random package of nabisco products.

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frank64

@jik: It is not evil, it is stupid. Maybe not stupid in the instance you need it, but stupid by being that close to your limit in the first place. Mostly I see credit limits way higher than they should be. You shouldn't be anywhere close to them. I will grant is that they have been reducing them lately.

Yes, having the choice can be seen as good, they are kind of making it a false choice though. They don't need to stop you for going over, they just can't charge you. They could allow you to over over a few times by a certain percentage and not charge you.

One thing to realize is the credit limits are there for a reason. They do not want to lend you over a certain amount. If the limits are reasonable to what you can handle(a big if I know) then you should yourself not be anywhere near the limit.

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floraposte

@frank64: I know what you're saying, but I think you're conceiving of a lower-priced emergency. You don't have to carry a balance to have an ER bill (for person or, for that matter, for animal) run higher than your limit.

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frank64

@floraposte: I bet that doesn't happen that much as compared to people just over using and not planning. You should never pay your ER bill with a credit card!

I know I will get beaten up for this: You should not go over your limit on a CC for a pet. Your are putting your family in economic peril. The vet bill on animals is as crazy as our medical bills. I know of a few people in severe economic distress because they did this and their pet ended up dying anyway, and with more suffering to boot. In another case, one of my friends vet was using emotional blackmail to push a very costly treatment which research later showed him was probably not going to work.

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pecan 3.14159265

@frank64: So how should I pay for my ER visit when the banks aren't open? I don't think they accept IOUs, and if I'm in a hurry to get to the ER, I'm probably more likely to grab a wallet than a checkbook.

You are not putting your family in peril when you go over the limit on a credit card - you are simply going over the limit on a credit card. I agree you shouldn't go over your limit, but if you have the money in your account, putting things on a credit card does not mean the end of the world.

Yes, vet bills are expensive. But what should pet owners do? Not try? It's almost as if you're saying that people shouldn't have even bothered since the pet \"ended up dying anyway\" - my grandma needs to go to the hospital, but it might put us in some financial trouble - should we not try anyway?

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frank64

@pecan 3.14159265: There is not much I can say if you equate a pet to your grandfather. In my mind my grandfather would be more important, but maybe you don't love your grandfather like I did?

I don't think the slippery slope works for pet to grandfather. You may love your pet dearly but it should be a different issue. Linking them is over dramatic and exactly what the Vet industry wants.

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frank64

@frank64: More importantly I was thinking about the people who really spent a lot on a pet and one is near bankruptcy because of a snowball effect. It increased the pets suffering and I think it is often more humane to let them go naturally. From what I have heard some vets are very encouraging of aggressive treatment.

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HogwartsAlum

@pecan 3.14159265: They can send you a bill.

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jik

@HogwartsAlum: Most veterinary ERs will not agree to \"send you a bill\" for major procedures. They expect fees to be paid at the time services are rendered, and if you don't pay, they won't do the procedure.

This is true for most for-profit vets and even for some not-for-profits.

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pecan 3.14159265

@jik: I was at the vet a few weeks ago, and the vet had forgotten to tell some people dropping off their pet for surgery that they didn't take American Epxress. Of course, that happened to be the only credit card the people had, and the vet graciously offered to send them a bill instead so they could mail back a check.

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frank64

@pecan 3.14159265: Wow only having an Amex, they must run into that problem a lot.

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HogwartsAlum

@jik: I thought pecan meant the PEOPLE ER, which would send you a bill. My mistake.

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frank64

@pecan 3.14159265: As for an ER visit, they will bill you. I know they will tell you they will give you a discount if you pay today. It happened to me. The discount they give you is on an inflated rate. If you pay them you will lose the negotiation power you have to find out what the real rate should be. You will save much more than the 10% by paying later after you have time to research. An ER visit is the worst time to pay your bill, you have many other worries.

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jik

@frank64: @frank64: Most veterinary ERs will not agree to bill you later, but rather demand payment up-front. There is no law requiring veterinary ERs to provide services to people who can't afford it, nor in my opinion should there be.

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frank64

@jik: Also this is a place of debate and we do have different takes on things, but your posts seem to be disrespectful. I think it might be better to tone it down a little

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frank64

@jik: If you normally to a certain vet and they will not let you slide on the small amount that a card would allow you to go over limit. I would look at going to a different vet in the future.

You win: I will concede in this case that it could be an instant where you need to. OK? I don't think it would happen to often, but if it does go for it.

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jik

@frank64: One more time... Going over your credit limit is not the same as \"putting your family in economic peril.\"

We had to install an entirely new heating system (new ducts to replace the ones with degraded asbestos, plus new furnace) in our house last month. The total cost of the new system was around $12,500. We put it on our credit card because (a) it was convenient, (b) we get 1% cash back, (c) doing so gave us a good long float on the $12,500, and (d) the installers didn't offer a discount for paying by cash or check. It put us well over our credit limit. I'll be paying it off completely when the bill comes. Our family is not in any economic peril.

What puts you in economic peril is spending more than you have, not spending over your credit limit. Going over your credit limit is not definitionally a bad thing; relying on your credit limit to prevent you from spending more than you have *is* definitionally a bad thing.

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frank64

@jik: You had the time and option to call and get a limit increase or to pay enough beforehand to make it within your limit. Other options would have been to use another or a debit card for some of it or to pay by check for the amount over.

The negativeness in going over much more often than not are worse than any benefits. Going over cost you the fee plus may increase your rate on that card or even get it closed down. Other cards will see you are over your limit and may also take costly action. Your Fico score will be much lower. Even strong long term customers are getting changes in terms on credit cards, this is just asking for it.

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frank64

@jik: There are the cases like yours but they are a small fraction of the cased.

The cards limits are there for a reason. The banks thinks you cannot handle any more. They are usually much higher than you can actually handle. If you wanted to put more on them you should call and ask for a higher limit and let them look at your credit and decide. Just the smart thing to do.

If you decide you want to do that, than by all means opt out, it just isn't the best thing for most people in MOST circumstances

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jik

@frank64: Right, and the banks have been oh so very good in the past and determining how much credit debt cardholders can handle.

In fact, in my experience, they are particularly bad at it in both directions -- they often give people less credit than they can handle, and they often give people more credit than they can handle.

Why you seem to think it's a good idea to expect the banks to have anything to do with protecting people from getting in over their heads is beyond me. I think it's pretty clear that they can't be trusted to do that.

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frank64

@jik: MANY people can't either, and in the MAJORITY of over limit cases that is the case.

Normal sound money management does not involve going over you limits. You are really stretching to come up with some, and if you have to once or twice in your life you have to. It might be the best short term decision, but to get there you had to make some wrong long term decisions.

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secret_curse

@jik: If you're in a situation where your credit needs change drastically month to month, you can look into getting a non-preset spending limit card. They have a limit to the credit line, but when your bill comes in you can pay off whatever you've spent above the credit line without a penalty. They're great for small businesses.

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jik

@secret_curse: Yeah, cards without a preset spending limit are pretty convenient for people who know how to spend responsibly. That must be why I wrote about them here almost an hour ago.

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WillB

@floraposte: Stop suggesting people should even toy with the idea of paying medical bills with credit cards.

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mmmsoap

@WillB: Maybe not for people, but you don't really have options for animals.

Yes, my dog is worth $3000 to me, if saving his life won't extend his suffering. I don't carry a particularly high limit card, but I certainly could access $3000 within a week or two. (Savings account, or sell some $$ in a mutual fund, etc.) But in terms of \"Payment due now, so Fido can get his mangled leg amputated,\" I'd go overlimit in a heartbeat.

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frank64

@mmmsoap: The reason I don't think this would happen in real life all that often is that I don't think they will allow a significant over limit charge to go through, if so wouldn't they have upped your limit before? They are not going to take a significant risk for $29. So if your limit is $1000 and you went over by $50 or 100, maybe, but not much more than that. I don't know myself what the limit would be, but the point is there are very few times where the range where it is an issue will apply to the discussion.

I think in a situation like that you explain you only have so much on your card, could they take a check or allow you to pay a small portion later?

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dragonfire81

@skipweasel: I believe he was referring to \"Blinged out cabbage\" It's a Woot thing.

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pecan 3.14159265

@floraposte: I hear you on that. With most ER visits of any significant magnitude running hundreds of dollars, if I had to go to the ER back in the first year of college, I would have had a very low ceiling to work with. It doesn't take a lot to tip you over the balance.

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PHRoG

We are all sheep...

4 replies

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Papa Midnight

@PHRoG: Didn't know Robin Williams was guest starring on Consumerist.

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Sudonum

@PHRoG:
Why am I reminded of Life of Brian?

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harvey_birdman

@PHRoG: If we are ALL sheep, then what's the problem?

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MostlyHarmless

@harvey_birdman: too much wool.

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Kimaroo - 100% Pure Natural Kitteh

@MostlyHarmless: Everyone should learn to knit then. Put the wool to good use!

/IKnitMyOwnSweatersAtHome

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jik

Capital One is indeed being misleading, but so is the author of the article above.

Card companies have two choices under the CARD act for how to deal with overlimit charges: (1) decline the charges; (2) allow them to go through without charging a fee.

Either choice is legitimate. Indeed, card companies may even choose customer-by-customer or even charge-by-charge whether to let overlimit charges go through.

Capital One has apparently opted for declining the charges. The way they presented that information to the customer was indeed a bit misleading, but the ultimate effect was legitimate and in accord with the law -- \"You have to opt in if you want us to allow overlimit charges to go through with a fee rather than being declined.\"

Consumerist could have, and should have, done a better job of making that clear. I find the snarky outrage to be just a bit misplaced.

7 replies

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ShruggingGalt

@jik: I agree. The same thing is going to happen with banks and debit cards. Except that when they start clearing checks in the middle of the day, and someone doesn't check their balance before going to lunch....oh boy.

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harvey_birdman

@jik: I find the snarky outrage to be spot on. Banks are financial institutions with responsibilities to investors, shareholders and account holders. This is a blog with consumer news and cat pics. One has more reponsibility to be completley upfront and honest than the other.

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techstar25

@jik: What bank in their right mind would choose option 2? It doesn't benefit the bank at all. Essentially if the bank allows a charge to go through without a fee, they are saying that your \"credit limit\" is just a suggestion instead of a hard limit. So why have a limit at all, if they are going to let everything go through?
I can't see any bank actually letting these charges go through.

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ben

@techstar25: Maybe one that wants to provide additional perks to its customers. \"Hey, you've never been late with a payment before and this is the first time you've tried to go over your credit limit, so as a courtesy, we're going to extend your limit a small amount this one time. Tell your friends how we're so much nicer than the other banks that want to charge you a $30 fee.\"

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jik

@techstar25: Of *course* it benefits the bank to let you go over your credit limit.

In addition to the goodwill generated by doing so as noted by ben, it also means that the charge goes through, which means that they get to charge a processing fee to the merchant.

In addition, if you're the kind of customer who carries a balance, the higher your balance, the more interest they make from you.

In fact, the only reason for the bank to reject overlimit charges is if they think you might not be able to pay off your balance, and as I noted above, they can make that determination on a per-customer or per-charge basis.

I have a Visa Signature card from Chase which has no preset credit limit (the Chase Web site claims that it does, but that's only because they haven't actually made any improvements to the Web site since long before the Visa Signature program was created). Rather, the credit limit has been replaced by a revolving balance limit, i.e., if I go over the limit in any billing period, then my minimum payment is large enough to bring me back below the limit.

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bohemian

@techstar25: I can see some logic if the charge is a dollar or two over. Letting it through might be a better option. If it was a $100 over limit that might be another issue.

They are being very misleading about the terms put in place by the CARD act and not fully disclosing the situation they are asking the cardholder to agree to.

The truth is they are asking people to opt in to a fee for an action they already might take on their behalf and not charge a fee. So a fee for nothing it what it is.

I am sure we will see more of this as banks try to find creative ways around the law.

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LINIS

@jik: Well said, jik.

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dognose

If you're hitting your credit limit, you should probably stop spending money you don't have.

The one time I needed to get more money on a card during a busy month, I just paid off some of the balance mid month... and of course paid off the entire balance at the end of the month.

9 replies

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frank64

@dognose: @frank64:

And more importantly when something else comes up, like an car repair or vet care, they forget about the trips and others things they spent, but then blame their bills on the emergencies, emegencies they could have saved for if they were smarter.

I know many will say it is not the case always, life is tough. I am just saying the majority of cases is because of some lack of planning.

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jik

@frank64: \"... the majority of cases is because of some lack of planning.\"

How can you possibly know that?

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frank64

@jik: Normal planning is to have an emergency fund. Something comes up you put it on your card and pay it when the bill comes.

There are still very few real life circumstances where the small amount they will allow you to go over will be worth the fee. Especially when the nuber of times when the credit limit and the amount will be such that the issue will come up. Your card should not be that close to your limit. In general it is not the best way to run your finance.

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frank64

@frank64: I think you mistook one of my initial posts to mean don't put anything on your card, I meant use your card for convenience, but have the money in the bank to pay at the end of the month.

Very few who do this will come even close to their limit. If so they will know and many will have a debit card. Again you are coming up with reasons that it could happen differently, it is just they would not happen much if at all to people who planned their finances well. It has never happened to me and I will not even pretend to be doing well right now.

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jik

@frank64: \"Normal planning is to have an emergency fund. Something comes up you put it on your card and pay it when the bill comes.\"

Right. Which means that, in an emergency, you may have to go over your credit limit. You appear to be saying here that's OK, but you've said repeatedly elsewhere in this discussion that it never is. So, which is it?

\"There are still very few real life circumstances...\"

How do you know? Do you feel you are in a position to judge the \"real life circumstances\" that might occur to everyone in the US who uses a credit card?

\"...where the small amount they will allow you to go over will be worth the fee.\"

Another unsupported assertion. You've stated repeatedly that the banks will only allow people to go over their limit by \"a small amount,\" but you've presented no evidence whatsoever to support that assertion. Aside from the question of how much the bank will let you go over an actual credit limit, I and another commenter in this discussion have both noted that there are credit cards which don't even have a credit limit, but rather have a monthly balance limit.

The monthly balance limit is determined the same way a credit limit is, i.e., it's the amount of credit the bank is willing to extend to you. The difference is that with a single billing cycle, I can run up my balance essentially as high as I want, well over my monthly balance limit, as long as a I pay the card down to the limit when I send in my next payment.

We will see more and more cards switch from a credit limit to a monthly balance limit as the banks figure out how to deal with the CARD Act. As a result, more and more people will be in a position to be able to significantly exceed their limit within a billing cycle, not just to exceed it by \"the small amount they will allow you to go over.\"

In short, you've offered no evidence to support this claim, and the evidence that is available would seem to suggest that it's wrong.

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frank64

@jik: \"Normal planning is to have an emergency fund. Something comes up you put it on your card and pay it when the bill comes.\"

Right. Which means that, in an emergency, you may have to go over your credit limit. You appear to be saying here that's OK, but you've said repeatedly elsewhere in this discussion that it never is. So, which is it?

Most people have debit cards also and can use in conjunction with credit cards to cover most real world emergencies.

\"There are still very few real life circumstances...\"

How do you know? Do you feel you are in a position to judge the \"real life circumstances\" that might occur to everyone in the US who uses a credit card?\"

Yes, I use a credit card. I am able to judge as well as you. We both seem to have different experiences.

\"...where the small amount they will allow you to go over will be worth the fee.\"

What types of Emergencies happen and how often? A car breaking down? To such an extent that you over limit? We have discussed ER's and they have been discounted. If the working room you have on your card is such that this will bring you over the limit you would have been better off planning something before this happened and having more working room on your card.

You are focusing on emergencies and I see that it is one of the main real reasons for going over. I just wonder in real life how many emergencies such as this happen to an extent it is immediacy so expensive that it would bring you over limits on all your available cards, and source of funds, and that there is not time to deal the payment in a different time. It mostly would happen if you were close to your limit already.

I really don't believe the majority of over limits are due to emergencies. I believe they are mostly due to normal life and life should be better planned for. I don't think the bank would be that concerned with the fee if it was that rare. It is important to them because it is for happens much more often than the infrequence of real honest to goodness emergencies.

I think we are going to have to disagree on this because there is no data to support any of ours instincts. I just thing you are either exaggerating the times it applies way out of proportion, or at least not planning for better alternatives. It has never happened to me. I will opt out and have peace of mind, and you can opt in and have peace of mind. We can both be happy.

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frank64

@jik: The monthly balance limits are not a part of the discussion. You need to bring up points that don't apply. The over limit fees are not for this type of account.

I agree with one of your first posts about having the option is good to have if one wants it. I still contend it is not a normally good thing to do, the examples you site are fewer than you suggest and in many instances there are better alternatives. But I at least agree if you want the option to pay the fee it is good the bank allows it.

I posted a reply to your housing example(I think it ended up placed wrong) that you had time for other options.

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Skaperen

@dognose: If you can't pay in cash, then stop spending money you don't have.

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harvey_birdman

@dognose: Wow, why didn't poor people think of that? It must be nice to make your own money at home.

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frank64

@harvey_birdman: It is more important for poor. Interest cost money and diminishes your standard of living. Most poor don't have cards, so the poor argument/class warfare doesn't hold up in reality.

Most people going over their limits are middle class or at least people with OK jobs who decide that the nights out or the trip can be paid for later.

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ben

@dognose: Good for you?

What does that have to do with Capital One complying with the CARD Act, though?

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jik

@dognose: Hitting your credit limit has nothing to do with spending money you don't have.

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frank64

@jik: By definition you don't have it. If you have it spend it.

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jik

@frank64: That's total and complete nonsense. If you don't understand why it can be financially advantageous to charge stuff to a credit card even when you \"have\" the money to pay off your card when it comes due, then you're a complete ignoramus when it comes to financial matters.

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frank64

@jik: There would be so few cases that it would be worth going over the limit for. If you wanted rewards the cost of rewards for the over limit fee would not be worth it.

Any other situation you may be able to conceive of would be less than 1% of any real world situation. I am sure someone who actually worked for CC companies would know the majority of people do it only because of bad financial management.

Calling someone an ignoramus is rude even when you disagree with someone.

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jik

@frank64: Please stop changing the subject to hide the fact that you said something extremely stupid.

You asserted that if someone has the money to pay for something, they should just pay for it rather than putting it on a credit card. That assertion has no basis in fact, and if you choose to dodge and change the subject rather than admitting that you were wrong when called on it, then yes, that makes you an ignoramus.

As for \"Any other situation you may be able to conceive of would be less than 1% of any real world situation,\" 97.3% of all statistics cited on the Internet are made up.

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frank64

@jik: \"You asserted that if someone has the money to pay for something, they should just pay for it rather than putting it on a credit card. That assertion has no basis in fact\"

It is not a fact, it is an OPINION. This was in the context of going over ones limit. If you have the money you should not put a charge on the card to go over the limit. Many people use a card and pay it off every month, that is not what we are talking about. If you DON'T have the money, there are so very few cases that it would be smart too go over ones limit. If it comes up it in because you have not planned for life.

The amount they will allow you to go over limit I would suspect would be small. That is another reason I suspect that very few times in ones life if at all would it be smart to go over limit. Most limits are much more than someone can handle in one payment.

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frank64

@jik: I dodged no issue and hit everyone head on. Did not change any subject. I did not use a statistic but made a point that you are magnifying a few very small instances to make them sound much more likely to come up.

The banks ARE NOT going to allow a significant over limit amount to go through even if you opted in. This means that it will only happen when a charge is in a small window.

You skipped over many of my points. You really seem to speaking more from anger than anything.

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mmmsoap

@jik: Right on.

Repeatedly going over your credit limit because you're continuing to spend money when you also carry a balance that's close to the limit...well that's spending money you don't have.

Going over you limit once, or even once in a while is not a big deal if you can and do pay it off. I don't care if it's intentional (holy crap, surprise $5000 expenditure!) or through accident/carelessness in terms of keeping track of where you are (Whoops! Honey and I both bought expensive gifts for each other in the same month!) does not mean you're spending money you don't have.

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hagirl

Way I hear it jik is right on this.

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MostlyHarmless

Whats with Capital One and the scorpion theme? Did I miss an earlier joke somewhere?

1 replies

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pecan 3.14159265

@MostlyHarmless: They're poisonous and prone to hide in your shoes?

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Blueskylaw

If only prosecutors could get suspected criminals to waive their rights, their jobs would be much easier.

But seriously, waiving my rights is only worth $10?

They must think the American public is stupid and I pray that they're not correct.

2 replies

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ben

@Blueskylaw: You're not waiving any rights. Capital One is complying with the CARD Act by making you opt in before charging you any over-the-limit fees. The Consumerist headline was/is misleading.

Assuming that the OP's recounting of the story is accurate, Capital One's phrasing is misleading too. You're not really getting a $10 discount. Their fee is just going to be $10 less than it was before. Now it will be either $29 if you opt in or $0 if you don't. (And they won't allow you to go over your credit limit if you don't opt in.)

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bohemian

@Blueskylaw: I big enough portion of the public is stupid. That is why companies and banks keep doing these things. They wouldn't if it didn't work enough of the time to be profitable for them.

Just look at the food industry and the shrink ray. That works because enough people don't notice or just shrug and buy it anyway.

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frenchic

I kept getting calls from Capital One so yesterday I answered. The man on the phone told me about this 'new act' going into effect in February of 2010 much in the same way the author of this post has described. When I told him that I didn't want the ability to charge beyond my credit card limit period he was incredulous.

He again tried to sell me the overdraft plan and I again requested that I not be allowed to overdraft my credit, period. The Capital One guy said to me that if I don't agree to this new policy I might not have enough money in case of a medical or car-related emergency etc because I won't be able to charge more than my credit limit. The thing is I ALMOST always pay my balance off in full each month--so a lack of credit is not an issue for me in case of an emergency.

I did not appreciate being talked down to like a child, but Capital One won't be getting any overdraft fees from me!

2 replies

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catnapped

@frenchic: But did the rep at least say \"Thank you come again!\" ???

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frank64

@frenchic: I am betting they would not allow a large charge over the limit anyway. I don't know, but I bet when they allow an over the limit to go through it is a small amount only.

If they thought you could handle a bigger balance then they would have let you, and if they feel you can't the fee isn't going to be worth it to them. They really aren't selling anything of value.

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Ronin-Democrat

may I have the snake oil burger and the backstabbing pie for dessert. thank you

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mythago

Another reason that you might temporarily go over your credit limit is a screw-up by the merchant or bank, which puts charges on your card that you did not make.

I recently tried to pay for a lunch with a client and was told my card was declined. Luckily I had a backup card, but this was embarassing, particularly as I had carefully checked the card and knew that I had ample balance on the card.

Turns out that a purchase I had made several days before had subsequently been run through THREE TIMES by the processing company. It was an error and they eventually fixed it, but if I had been allowed to put the lunch charge through I would have gone over my credit limit - thanks to a stupid mistake by somebody else.

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frank64

@mythago: That fee would have been taken down. But would be an instance where they would have accepted the card if you opted in.

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apd09

All your base are belong to us

[upload.wikimedia.org]

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Cant_stop_the_rock

\"So you're not giving up all your rights, you're opting in to overlimit fees\"

Yeah, that's what I said the first time you posted this...

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Cant_stop_the_rock

@Cant_stop_the_rock:
Obviously Capital One is choosing to stop allowing transactions that go over the limit in addition to being forced to stop imposing the fees. Opting in to the fee is the only way they'll allow overlimit purchases. I'm not sure why you would opt in to that, but the idea of running your credit card up to the limit is also foreign to me. To each his own.

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Its_Miller_Time

Ironically, Capital One called me last night regarding this. They tried to get me to verify my zip code to ensure that it was me (okay, wierd...). Before I provided any information, I asked what the call was in reference to. The gentleman was very polite and said it was related to the new CARD Legislature and its impacts to my account.

I simply told him I did not have time to discuss (have my hands full with a newborn) and would call later.

I am glad I read the first post about this yesterday...because I feel I was well-informed! :)

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AllanG54

Unless you have a really low credit limit what would be the danger in going over it. And this seems like an oxymoron anyhow...why even set a limit if the bank is going to let you go over it. Odds are you'll be paying interest anyhow so the added $29 is no big deal especially since you have to make your normal payment plus anything that's over the limit when you make the next payment.

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frank64

@AllanG54: If you feel that way opt in. Some don't, it is good to have that choice.

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frank64

One thing I am wondering is for those who opt in, will they now not give you the credit limit increases so as to maximize income? Or will they keep all the limits so as to encourage us to opt in? Often in these types of protections things like this happen.

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frank64

@frank64: I meant keep all the limits LOWER to encourage us to opt in?

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alshultz

That's funny. I received my call from Capital One about the up coming credit card changes while I was reading this article. The Capital One representative made sure to let me know if I don't agree to their overlimit fees RIGHT NOW, then I would LOSE THE OPPORTUNITY FOREVER

No joke. It was a pretty fail-filled scare tactic, telling me if I don't waive my right right now I won't get the chance to do it in the future :/

And to top it all off the representative seemed genuinely startled when I told her I wanted no part in their \"emergency\" protection plan. Her reaction makes me wonder how many card holders are agreeing to these fees!!! I betting you it's a good number!

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Scatter

I know that it's a bit off topic but how does the CARD act effect debit card holders?

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frank64

@Scatter: Not one bit.

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ChemicallyInert

When will we be able to opt-in to overdraft fees?

November 13, 2009 4:36 PM

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mm16424

I must be lucky. CapOne was my first card, and it's still my best. No, I'm not a shill for them. My CapOne card has the lowest interest rate, when I make a payment on their website, it's credited and available next day, I don't have to pay an \"expedite\" fee to make a same-day payment.

I too \"opted out\" as I don't WANT to go over my limit. Now, if I can find a bank to work my visa debit card in the same fashion.

I generally DO know what my balances are, but if I'm in a hurry, and can't remember, I'd rather run 3 cards and be turned down on 2 than be fee'd for the \"privilege\" of making a $5.00 charge that goes $2.00 over my limit.

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princess

January 15, 2010 1:41 PM

It makes perfect sense what's going on, if you actually know how to read what you are given. The only reason you get a call is for verbal confirmation to keep the option on an account or not. And its not that you have to \"stop charging\" over limit fees, it's is in order to be charged the OL fee, you have to have given them prior consent to Feb 22nd-