Credit Tips: Credit Card Over-Limit Fees
Posted On: April 1, 2005
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Post subject: over-limit fees on credit cards
Bob
Date: 10/10/2000 10:31 pm CDT
Is there any way one can get out of paying over-limit fees as long as the cause of the overlimit is due to fees imposed by the credit card company itself and not charges incurred my me. Household Bank is charging me overlimit fees on my acct. due to membership fees and a late fee.
I have no problem paying my late fee, or membership fee, but with the already high intrest, this seems to be gouging. Is there anyone who regulates this sort of thing. Thank you. Bob
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Board Monitor - AD
Date: 10/13/2000 1:28 am CDT
Dear Bob,
You should contact customer service and explain the situation, if they are reasonable, they should waive the over-the-limit fee. But they may ask that you to pay the membership and late fee before waiving the over-the-limit fee. Each issuer differs in handling such situations, but in all honesty, speak to the representative in a polite manner, and he or she should waive the fee, especially if this has not happened frequently and you’ve been a good customer in the past.
Sincerely,
Alex Daskaloff
creditcardfreedom.com
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
tim
Date: 10/13/2000 9:10 pm CDT
Also suggest a secured card because of Household’s fees and interest rate. They suck….
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Patrick
Date: 10/22/2001 11:41 pm CDT
I am starting to have the same situations occuring on my cards with Household Bank. I have 2 HHB Mastercards, and an Orchard Bank card. I have been paying all of them for about on time, and always pay over the minimum.
For the last several months, they have been charging me late fees and over limit fees. The late payments were sent with plenty of time before the due dates, and sent electonically by my bank.
Here is the history of one account starting in the statement closing 5/14/01:
Payment due: $22.00 on 6/8/01
Paid $50.00 online via NetBank on 5/30/01
HHB recorded the payment on 5/31/01 and no other transactions occured until 6/11/01, which was a returned check fee of $29.00 (on the 5/31/01 $50.00 payment)
(How come it took so long to occur?) I complained to my bank (NetBank, recently CompuBank) and closed the account because of this delayed transaction.
HHB charged my account $50.00 back, then when I complained about that agreed to credit the returned check fee of $29.00 on 6/14.
HHB then charged me a $29.00 late fee on 6/14.
On 6/25, noticing all this going on from the HHB website which has account availability for card members, I called in and paid $50, incuring a $6.00 Phone Pay Fee. The payment was credited that day.
On 6/27, HHB hit my account with a $70.00 annual fee.
For statement ending 6/14, I now had $22.00 past due indicated, and a current payment of $23.00 for a total due on 7/9 of $45.00.
On 7/5, I instructed my new bank, ETRADE Bank, to pay $50.00 for the 7/9 due date. HHB posted it on 7/13, and the statement ended the month on 7/16, with $24.00 due 8/10.
My balance on a $950.00 credit limit was now at $801.79, leaving 148.21 available. (I had only charged $19.90 on that statement, and $12.87 was interest..all the other charges were fees).
On 8/8, I paid via Etrade $100.00 which was due 8/10.
My next HHB statement ended 8/14, and showed mo payment. I had made 5 charges between 7/18 and 8/8 which they authorized bringing my balance $949.09 under my $950 limit.
On 8/14 they charged my account interest of $13.92, and then hit me with a $29.00 late payment fee. The 8/8 Etrade payment of $100.00 didnt get there until 8/20. The statement ended on 8/14 with a $991.98 balance. The statemnet amount due was $24.00 past due, and a current payment due of $41.98, total for this statement $65.68 due 9/9/01.
For statement ending 9/14, HHB charged my account $29.00 overlimit fee on 8/15 (the very first day of the statement period, and overlimit because of the interest and late payment fees on accessed on previous statement dates (8/14)
On 8/20, HHB received my payment of $100.00 as mentioned earlier. I made only one other charge for $25.25 myself this statement. Interest charges for statement ending 9/14 were $18.02 which brought my balance to $964.25 (still over limit of $950.00). Payment due for this statement was $29.00 due 10/9/01. I instructed Etrade to pay $50.00 on 9/28, which HHB posted to my account on 10/6. I had made no charges this period, but on 9/17, HHB hit my account another overlimit fee of $29.00.
For the statement ending 10/14, my balance was $961.78. Current total payment due is only $29.00 on 11/8/01.
Also, the interest is now up to 22.90% from 18.90 percent 2 months earlier.
As you can see how fast they make this credit account a mess with the fees. I spoke to someone from Customer Service, who continuously interupted me when trying to explain these same transaction history. She told me I have to pay the minimum due, plus any charges for late fees and overlimit fees to bring my account under the credit limit, even though the statement indicated I only have to pay a current minimum payment and or overdue amounts. I pointed out that the statement said pay a certain amount, which each time I paid over that amount significantly, but because they were not posting my payments in a timely manner, this increased the problem.
I asked for a manager after continuous interuptions and getting nowhere. She told me that she would make a note of the request, and someone would call me back within 48 to 72 ours. 48 to 72 hours is almost 2 business weeks if we follow bankers hours!
Now, let me end here with this: Consumers need someone to complain to that can investigate these transactions. I have discussed this with Etrade, and we agreed together that since this problem only occured with HHB, that it wasnt there own fault for the delayed payments. Also, my 2 other HHB accounts(one is Orchard Bank) do get paid through Etrade as well, and on time. We need a legal entity to investigate the way HHB is doing business. I have seen very similar complaints on the internet about HHB and others. The banks are gouging us very hard, when we are very honest, ontime payers trying to maintain or build good credit! I welcome comments and help from others.
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
tim
Date: 10/13/2000 9:08 pm CDT
If it not too late (past 30 days from the time the memebership fee was added), you can close the account and not have to pay the membership fee. Read your original contract.If you can’t work it out with household, pay them and cut your losses.They could further damage your credit history and it is not worth the time you will spend trying to clear this mess up.
Why would you go with Household any way? Get a secured card like Sterling or Capital One. The interst rate should be around 19% and their should be only an annual fee.
Household at 24% and no 800 numbers and no website bil payment and no credit limit increase for 18 months, just plain sucks.
Save $200.00 open up a secured account and go about your business.
good luck. Order all three of your credit reports now and check your credit history for mistakes and out of date information.
Pay your bills on time and don’t spend more then you can afford to pay off in one calender year. ( My personal rule of thumb! ) Good luck
Household is only an option, I know, it is not a rule.
Good luck.
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Marilyn
Date: 10/17/2000 9:41 pm CDT
Help! My over the limit fee is just increasing my balance!!! Three years ago I was in a financially stressful situation. I could not meet my payments, thus late payment fees and over the limit fees piled up. At that time I called Chase Mastercard to see if I could settle the account. I was told to settle I would need to pay 80% of the balance. Obviously, I could not do so, I cancelled the card and paid whatever I could monthly. I have now re-established my credit and have been making timely payments of $75 every month. I called credit counseling services to see if they can stop the over the limit fees if they take over my account and was told they only help in bankruptcy cases. The balance at that time was only $1,800 it is now over $3,000. I cannot believe that such a recognized bank is giving me such a hard time!!! What can I do?
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Share this article with:
Delicious
Digg
reddit
Facebook
StumbleUponNo comments yet.
Leave a Reply
Credit Tips: Credit Card Over-Limit Fees
Posted On:
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Post subject: over-limit fees on credit cards
Bob
Date: 10/10/2000 10:31 pm CDT
Is there any way one can get out of paying over-limit fees as long as the cause of the overlimit is due to fees imposed by the credit card company itself and not charges incurred my me. Household Bank is charging me overlimit fees on my acct. due to membership fees and a late fee.
I have no problem paying my late fee, or membership fee, but with the already high intrest, this seems to be gouging. Is there anyone who regulates this sort of thing. Thank you. Bob
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Board Monitor - AD
Date: 10/13/2000 1:28 am CDT
Dear Bob,
You should contact customer service and explain the situation, if they are reasonable, they should waive the over-the-limit fee. But they may ask that you to pay the membership and late fee before waiving the over-the-limit fee. Each issuer differs in handling such situations, but in all honesty, speak to the representative in a polite manner, and he or she should waive the fee, especially if this has not happened frequently and you’ve been a good customer in the past.
Sincerely,
Alex Daskaloff
creditcardfreedom.com
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
tim
Date: 10/13/2000 9:10 pm CDT
Also suggest a secured card because of Household’s fees and interest rate. They suck….
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Patrick
Date: 10/22/2001 11:41 pm CDT
I am starting to have the same situations occuring on my cards with Household Bank. I have 2 HHB Mastercards, and an Orchard Bank card. I have been paying all of them for about on time, and always pay over the minimum.
For the last several months, they have been charging me late fees and over limit fees. The late payments were sent with plenty of time before the due dates, and sent electonically by my bank.
Here is the history of one account starting in the statement closing 5/14/01:
Payment due: $22.00 on 6/8/01
Paid $50.00 online via NetBank on 5/30/01
HHB recorded the payment on 5/31/01 and no other transactions occured until 6/11/01, which was a returned check fee of $29.00 (on the 5/31/01 $50.00 payment)
(How come it took so long to occur?) I complained to my bank (NetBank, recently CompuBank) and closed the account because of this delayed transaction.
HHB charged my account $50.00 back, then when I complained about that agreed to credit the returned check fee of $29.00 on 6/14.
HHB then charged me a $29.00 late fee on 6/14.
On 6/25, noticing all this going on from the HHB website which has account availability for card members, I called in and paid $50, incuring a $6.00 Phone Pay Fee. The payment was credited that day.
On 6/27, HHB hit my account with a $70.00 annual fee.
For statement ending 6/14, I now had $22.00 past due indicated, and a current payment of $23.00 for a total due on 7/9 of $45.00.
On 7/5, I instructed my new bank, ETRADE Bank, to pay $50.00 for the 7/9 due date. HHB posted it on 7/13, and the statement ended the month on 7/16, with $24.00 due 8/10.
My balance on a $950.00 credit limit was now at $801.79, leaving 148.21 available. (I had only charged $19.90 on that statement, and $12.87 was interest..all the other charges were fees).
On 8/8, I paid via Etrade $100.00 which was due 8/10.
My next HHB statement ended 8/14, and showed mo payment. I had made 5 charges between 7/18 and 8/8 which they authorized bringing my balance $949.09 under my $950 limit.
On 8/14 they charged my account interest of $13.92, and then hit me with a $29.00 late payment fee. The 8/8 Etrade payment of $100.00 didnt get there until 8/20. The statement ended on 8/14 with a $991.98 balance. The statemnet amount due was $24.00 past due, and a current payment due of $41.98, total for this statement $65.68 due 9/9/01.
For statement ending 9/14, HHB charged my account $29.00 overlimit fee on 8/15 (the very first day of the statement period, and overlimit because of the interest and late payment fees on accessed on previous statement dates (8/14)
On 8/20, HHB received my payment of $100.00 as mentioned earlier. I made only one other charge for $25.25 myself this statement. Interest charges for statement ending 9/14 were $18.02 which brought my balance to $964.25 (still over limit of $950.00). Payment due for this statement was $29.00 due 10/9/01. I instructed Etrade to pay $50.00 on 9/28, which HHB posted to my account on 10/6. I had made no charges this period, but on 9/17, HHB hit my account another overlimit fee of $29.00.
For the statement ending 10/14, my balance was $961.78. Current total payment due is only $29.00 on 11/8/01.
Also, the interest is now up to 22.90% from 18.90 percent 2 months earlier.
As you can see how fast they make this credit account a mess with the fees. I spoke to someone from Customer Service, who continuously interupted me when trying to explain these same transaction history. She told me I have to pay the minimum due, plus any charges for late fees and overlimit fees to bring my account under the credit limit, even though the statement indicated I only have to pay a current minimum payment and or overdue amounts. I pointed out that the statement said pay a certain amount, which each time I paid over that amount significantly, but because they were not posting my payments in a timely manner, this increased the problem.
I asked for a manager after continuous interuptions and getting nowhere. She told me that she would make a note of the request, and someone would call me back within 48 to 72 ours. 48 to 72 hours is almost 2 business weeks if we follow bankers hours!
Now, let me end here with this: Consumers need someone to complain to that can investigate these transactions. I have discussed this with Etrade, and we agreed together that since this problem only occured with HHB, that it wasnt there own fault for the delayed payments. Also, my 2 other HHB accounts(one is Orchard Bank) do get paid through Etrade as well, and on time. We need a legal entity to investigate the way HHB is doing business. I have seen very similar complaints on the internet about HHB and others. The banks are gouging us very hard, when we are very honest, ontime payers trying to maintain or build good credit! I welcome comments and help from others.
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
tim
Date: 10/13/2000 9:08 pm CDT
If it not too late (past 30 days from the time the memebership fee was added), you can close the account and not have to pay the membership fee. Read your original contract.If you can’t work it out with household, pay them and cut your losses.They could further damage your credit history and it is not worth the time you will spend trying to clear this mess up.
Why would you go with Household any way? Get a secured card like Sterling or Capital One. The interst rate should be around 19% and their should be only an annual fee.
Household at 24% and no 800 numbers and no website bil payment and no credit limit increase for 18 months, just plain sucks.
Save $200.00 open up a secured account and go about your business.
good luck. Order all three of your credit reports now and check your credit history for mistakes and out of date information.
Pay your bills on time and don’t spend more then you can afford to pay off in one calender year. ( My personal rule of thumb! ) Good luck
Household is only an option, I know, it is not a rule.
Good luck.
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Marilyn
Date: 10/17/2000 9:41 pm CDT
Help! My over the limit fee is just increasing my balance!!! Three years ago I was in a financially stressful situation. I could not meet my payments, thus late payment fees and over the limit fees piled up. At that time I called Chase Mastercard to see if I could settle the account. I was told to settle I would need to pay 80% of the balance. Obviously, I could not do so, I cancelled the card and paid whatever I could monthly. I have now re-established my credit and have been making timely payments of $75 every month. I called credit counseling services to see if they can stop the over the limit fees if they take over my account and was told they only help in bankruptcy cases. The balance at that time was only $1,800 it is now over $3,000. I cannot believe that such a recognized bank is giving me such a hard time!!! What can I do?
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Share this article with:
No comments yet.
