Tuesday, July 4, 2017

What Happens When You Go Over Your Credit Limit?

MoneyTips

Credit is a great convenience, but it's a convenience that you will pay for — especially if you go over your credit limit.

Traditional over-limit fees were radically changed by the Credit CARD Act of 2009, which switched credit card over-limit fees to an opt-in basis — meaning that consumers have to specifically consent to pay over-limit fees and must have the ability to opt out at any time. The Consumer Financial Protection Bureau (CFPB) estimated that the change in over-limit fees produced a saving of $9 billion for Americans between 2011 and 2014. However, there are still a number of consumers that pay directly for going over their credit limit.

Why would anyone choose to pay these fees? In some cases, it may be that consumers simply don't pay attention to the terms and conditions and opt-in, not understanding the consequences. In other cases, it's...



from MoneyTips https://www.moneytips.com/what-happens-when-you-go-over-your-credit-limit

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