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!