Over your limit? American Express and Discover have announced that they are no longer charging fees for people who exceed their limit. The newly passed credit card law is showing that it has some teeth and that its future consequences are resonating with credit card companies.
Amex started informing cardholders this month that it would eliminate overlimit fees on all of its consumer credit cards with its Oct. 1 billing statements. Desiree Fish, a spokeswoman for the New York credit card company, said Friday that it will continue to make point-of-sale decisions about whether or not to allow cardholders to make purchases that exceed their spending limit, but will no longer assess a fee to those who are permitted to complete their purchase.
Not all people will be allowed to make a purchase if they have reached their limit and overage fees may be eliminated but late fees will increase. The income that companies were making from people who exceeded their limit was only a small part of the companies’ revenues. Fees for cash advances will also increase.
Cardholders who use their card for cash advances or pay late, can expect to pay more with American Express. If you pay on time and don’t go over your limit, they is nothing to fear (yet).
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I got a letter from one of the banks (I have so many..) that cash advances are going up to 5% unless otherwise offered. I thought 3% was high.. get ready.. stay frugal..