Interesting take on the new credit card law

[geojen]

Has there ever been an industry so relentlessly at war with its customers as the credit card industry is now? Watching new credit card legislation sail through Congress this week is the industry's reward for giving even its most responsible customers the overwhelming sense that they are getting ripped off. Indeed they are, and there is no more compelling, incontrovertible proof than the flimflammery of "over the limit" charges.

Last week, in a town-hall-style anti-credit card rally, President Obama shared his stage with a woman who had accidentally charged a payment to the wrong credit card, which let the payment go through, then turned around and said she was "over the limit" and raised her rate to 30 percent. This neatly encapsulates the worst practices of the credit card industry. Credit card companies can easily just turn down a charge that put a card over its maximum. No harm, no foul.



In Their Own Interest: Government is saving the credit card industry from itself. | The Big Money

[disneysteve]

I agree. I usually defend the CC companies and say it is "buyer beware" and users must understand and follow the rules, but over limit charges are ridiculous.

When I get a credit card, the company establishes a credit limit for my account. If, however, I attempt to make a purchase that would put me over that "limit", rather than denying the transaction, they allow it and then slap me with a $30 or $40 fee for exceeding the "limit" that they chose not to enforce. Plus, they hike my interest rate.

What good is setting a limit and then not enforcing it? And why punish the user for breaking a rule that you chose not to enforce?

This is definitely one thing that needs to stop. A limit should be just that. If you try to make a purchase that would put you over your limit, it should be denied at the point of sale.

[simpleyme]

why do they use the example of someone accidently using the wrong card and going over their limit?
I hate credit cards and their practices but I have never "used the wrong card " how does one even do that?
and if I did use the "wrong" card it would make no differance since when on the rare occasion I use a cc I pay it off in full and coulld not go over limit on accident,I would have to accidently buy a used car ;-)

I do love that they protect you from emberassment by letting you go over , yet they do not seem to mind emberrassing you by declining your card when they think for unknown reasons that there could be fraud ;-)
I can not tell you how many friends and family have told me about having their card rejected for that reason when the card was in goodstanding

[boosami]

I agree the over-the-limit charges are ridiculous in cases where the transaction could just as well have been prevented. I am glad to see the new credit card bill will be eliminating that from the smorgasbord of credit card company fees.

[disneysteve]

Originally Posted by simpleyme

I do love that they protect you from emberassment by letting you go over

They don't give a darn about protecting your from embarrassment. The only reason they let you go over the limit is so they can slap you with an extra fee and hike your rate.

If you are that close to your limit, you need a little embarrassment.

[red92s]

Originally Posted by simpleyme

why do they use the example of someone accidently using the wrong card and going over their limit?
I hate credit cards and their practices but I have never "used the wrong card " how does one even do that?

I've done it several times. My company and personal credit cards look very similar. Swiping at a gas pump, check out lane, or fast food place I've accidentally used the wrong one.

[simpleyme]

Originally Posted by red92s

I've done it several times. My company and personal credit cards look very similar. Swiping at a gas pump, check out lane, or fast food place I've accidentally used the wrong one.

I have never accidently gave someone a fifty instead of a twenty,never picked up the wrong kid

I have tried to put my keys in the wrong car before ;-)

[simpleyme]

Originally Posted by disneysteve

They don't give a darn about protecting your from embarrassment. The only reason they let you go over the limit is so they can slap you with an extra fee and hike your rate.

If you are that close to your limit, you need a little embarrassment.

yep and the reason they do not let any activity that could possibly be fraud slip by is they have to eat it

[GREENBACK]

I hope all this stuff helps everyone realize that cc companies are completely self serving entities that only care about a steady income stream regardless of how it's generated. It's a symbiotic relationship (currently) for good customers and a parastic relationship for bad customers. They make money either way and that's their only interest. They only look at their bottom line and couldn't care less about the customer or their financial situation.

Not sure what new rules will do to them. They are very crafty and will wordsmith their way around any new laws. My opinion is that lack of personal responsibility is what they thrive on and their is an abundance of that. If you use the wrong card and get screwed you should accept the penalty and move on or stop using credit cards. I realize the games they play and keep a trained eye on them. Too bad most don't.