Ask the Dolans: What recourse is there against a credit card limit fee?
Ken and Daria Dolan, America's First Family of Personal Finance, answer your money questions every Friday.
Click here to ask Ken and Daria your question.
Here's one thing we love about credit card companies – they got a lot of guts! It still amazes us how they keep finding new ways to nickel and dime folks who are just trying to play by the rules. Gone are the days of only having to worry about making your payments on time. Credit card companies are on a fee frenzy!
Are these sneaky fees legal? Let's take the case of one WalletPop reader and examine what her options are for fighting back.
Dear Ken and Daria,
Is there any recourse against a credit card that allows charges over the limit and then charges a fee because it is over the limit?
-Wilfred
Ken and Daria give you a peek at some of the sneaky credit card fees companies are using to make more money and how you can beat them at their own game, now at Dolans.com.
Click here to ask Ken and Daria your question.
Here's one thing we love about credit card companies – they got a lot of guts! It still amazes us how they keep finding new ways to nickel and dime folks who are just trying to play by the rules. Gone are the days of only having to worry about making your payments on time. Credit card companies are on a fee frenzy!
Are these sneaky fees legal? Let's take the case of one WalletPop reader and examine what her options are for fighting back.
Dear Ken and Daria,
Is there any recourse against a credit card that allows charges over the limit and then charges a fee because it is over the limit?
-Wilfred
Ken and Daria give you a peek at some of the sneaky credit card fees companies are using to make more money and how you can beat them at their own game, now at Dolans.com.
Reader Comments (Page 1 of 1)
3-07-2009 @ 3:23PM
Gale said...
My friend just told me she got a credit card with a $2,000.00 credit limit. She charged $1,400.00. She was late one payment so they lowered her credit limit down to $700.00, now they are charging her over the limit fees every month until she gets it down plus went up on the interest. I know they go up on your interest but charging you late fees for the monies the said you can spend in the first place is crazy.
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3-22-2009 @ 10:34PM
Roy said...
Credit card companies are "bottom feeders". They are lower than low. However, they're all we have available and if we have to play their way, some rules are in order.
1) Never make a late payment
2) Pay the payment early enough to give yourself room to check on its receipt and to make another payment if it gets lost, before the due date.
3) Don't pay by phone as it costs you money to do so. Do it by mail.
4) Don't ever approach your credit limit. Avoid over-limit fees.
5) If you have used a substantial amount of your credit, the card companies know your pattern of activity. They know whether you can "ditch" them and may use your vulnerability as an excuse to raise your interest rate for no reason.
6) Control your spending. Don't buy things you don't need and find yourself in a pinch when something unexpectedly occurs to put your finances in a tailspin.
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