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AMEX and Discover Kill Over-the-Limit Fees

Posted By admin || 18-Aug-2009

According to an article in the Star-Telegram , American Express and Discover credit card companies plan to eliminate their over-the-limit fees.

The article said:

"The two companies said separately Tuesday they will soon end the charges that have generated widespread criticism from consumers. The moves come before credit card regulations set to take effect in February limit the way credit card issuers may charge such fees. Under the legislation signed by President Obama in May, consumers must agree to pay a fee before they can charge more than their credit limit, and card issuers must tell their customers how much those fees would be."

The two companies have yet to set a definite date for ending their current over-the-limit fees; but the move is expected to be a welcomed relief for their credit card customers. However, credit card consumers must understand that although a company may avoid charging a separate fee for exceeding your credit limit, you are still required to repay that money with interest, which can be costly in the long-term. In many ways it is better to have a credit card that will prevent over-the-limit charges because it does not benefit the credit card customer to go over their credit limit. For those credit card consumers who use AMEX or Discover card, it may be worth the effort to call them and find out if you can set your credit card to reject any charges that would take you over your limit.

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