Category: Spending limits

Why do credit card companies even let you go over the limit?

Why do credit card companies even let you go over the limit anyway? Why can’t they just cut you off wehn you’ve reached it until you’re back under it? I remember once quite some time ago, I went over mine by a few dollars. I complained to the company, and they did remove the over-the-limit fee. I asked them if they could not restrict the account, to where I could not go over the limit. He fought me for some time, but finally did restrict it.

It is ironic that the credit card comapny will give you a credit limit and then punish you for trying to use it al by “rate jacking” you. I have seen credit card comapnies lower your credit limit the closer you get to you limit. I think they should rename the term “Credit Limit” to something else. It really is not your credit limit in many cases.

Maybe some of the CC co’s are trying to appear “responsible” since so much has been written about them being anything but by the way they have issued credit to so many people who they knew were high risk. Then there is the wildly popular Dave Ramsey making nasty comments about them. I am cynical .Many of these same co’s are the ones who go by different names and constantly send mail offers to those who they know are high risk. More mail from Washington Mutual-Citibank today.

More paper for the shedder which will be made into a peper pulp bowl with sharks painted on it! LOL Maybe they’re hoping the client doesn’t catch the over limit fee and
other little add ons…. “Mo’ money, mo’ money….”

The debt buying business is growing and that is no surprise to me. What the sleezebags can get away with is outrageous.

This is a good article.

I read a similar one last week and since the writer had his email at the bottom of the story I sent him an email telling him I had filed complaints against the co that kept me in the dark concerning interest fees and found out months later and $1700 less from my wallet that they were not appling any of what I had sent to reducing my debt and were in fact increasing it. I told him I didn’t think my complaints did much good, but I wanted it on the record and maybe if there were enough complaints something or someone would take action.

I received a reply from the writer of the article and he told me my story was similar to so many who had written him.

Part of any action taken against debt collectors should be that they can only charge interest on what they have

actually paid for the debt they purchased.

If they paid 50 bucks for a $1000 debt then why should they be allowed to charge interest on the whole amount? Interest is supposed to be only charged for money that was borrowed. A person whose debt has been sold to a collection agency has not borrowed any money from the sleazeballs so why should they legally be able to charge interest on the whole amount. It doesn’t make sense. So much of what is sold to a debt buyer is most or all interest anyway. It’s just another way to screw someone who is already deep in the hole!

Well, this really threw out a tissy, to say the least

Well, this really threw out a tissy, to say the least. I got scolded that I didn’t know what I was talking about. That we all might as well go back to “horse and buggy” days. How using credit cards is better for our whole consumer economy, how getting all the cash back percentages helps individuals and that people who end up in debt are basically stupid. How renting a car could not be done without a credit card. I was told I had a lot to learn and that I had no right to give out advice on something I knew nothing about. WOW.

So my final reply was this:

“I’m so sorry you feel as if I don’t know what I’m talking about. Yes, I have rented cars with my checking account debit card, yes I am able to also save money in very many other ways besides using cash back rewards from creditors. And I certainly commend all the people who use their credit line or lines responsibly, but the situation of high percentages of people who don’t outweigh those who do, unfortunately.

I have never had a problem with my checking account being wiped out by fraudulent transactions. I only transfer a minor amount of money in there to use, as I need it for spending purposes. That’s what my advice is based upon and it does work for a lot people, who don’t wish to use credit cards – whom have had a problem with them in the past- as I did. Millions of young adults are in the throws of overspending before they actually have money or the ability to earn the kind of money they want to spend. Credit lines make it far too easy and tempting for these financial problems to happen for young adults and that’s a fact.

Please don’t question my creditability based on only your opinion, just because you don’t understand my advice, nor understand my goals. Our children and young adults of this nation really do need some serious help with math skills, decent consumer skills, budgeting practices and ethics for saving money. I still really think there should be more control from the creditors, to help be a part of solving the credit card debt crisis. It really does SUCK to be in major credit card debt and have to dig yourself out of it. If you’ve never experienced that mistake, then you have no right to judge that I don’t know what I’m talking about.”

Has anyone here heard or seen anything more about certain creditors putting spending limits on people way before they have even reached their credit limit, due to patterns of too many transactions in a short time? What do you all think?