Update: Capital One: Waive Your Rights, Get $10 Off Your Next Overlimit Fee!

Here’s the straight scoop on what’s up with the story in that “Capital One: Waive Your Rights, Get $10 Off Your Next Overlimit Fee!” post.

Everett wrote in how Capital One called him up and said, “due to the changes made by [the Card Act], Capital One would have to deny any charges that goes over your credit limit starting in February of 2010. However if you want to maintain the ability to go over your credit limit you could opt to have your account stay the same as it is now. Your fee for going over your credit limit would be dropped to $29 (from $39) if you chose to do this.”

What’s up is that the new CARD act says that if you’re going to charge overlimit fees, customers have to opt-in to it. Most credit card companies have chosen instead to drop overlimit fees entirely. Capital One is actually trying to get permission here, they’re just misleading in saying that they have to “deny any charges that go over your credit limit starting February 2010. In reality, after Feb 10. Capital One has to stop charging this consumer fees for any overlimit transactions.

So you’re not giving up all your rights, you’re opting in to overlimit fees. I’m sure there’s some subset of the population that enjoys paying fees, so I commend Capital One for developing a product line that addresses their needs.

PREVIOUSLY: Capital One: Waive Your Rights, Get $10 Off Your Next Overlimit Fee!


Edit Your Comment

  1. idip says:


  2. PHRoG says:

    We are all sheep…

  3. jik says:

    Capital One is indeed being misleading, but so is the author of the article above.

    Card companies have two choices under the CARD act for how to deal with overlimit charges: (1) decline the charges; (2) allow them to go through without charging a fee.

    Either choice is legitimate. Indeed, card companies may even choose customer-by-customer or even charge-by-charge whether to let overlimit charges go through.

    Capital One has apparently opted for declining the charges. The way they presented that information to the customer was indeed a bit misleading, but the ultimate effect was legitimate and in accord with the law — “You have to opt in if you want us to allow overlimit charges to go through with a fee rather than being declined.”

    Consumerist could have, and should have, done a better job of making that clear. I find the snarky outrage to be just a bit misplaced.

    • techstar25 says:

      @jik: What bank in their right mind would choose option 2? It doesn’t benefit the bank at all. Essentially if the bank allows a charge to go through without a fee, they are saying that your “credit limit” is just a suggestion instead of a hard limit. So why have a limit at all, if they are going to let everything go through?
      I can’t see any bank actually letting these charges go through.

      • bohemian says:

        @techstar25: I can see some logic if the charge is a dollar or two over. Letting it through might be a better option. If it was a $100 over limit that might be another issue.

        They are being very misleading about the terms put in place by the CARD act and not fully disclosing the situation they are asking the cardholder to agree to.

        The truth is they are asking people to opt in to a fee for an action they already might take on their behalf and not charge a fee. So a fee for nothing it what it is.

        I am sure we will see more of this as banks try to find creative ways around the law.

    • LINIS says:

      @jik: Well said, jik.

    • ShruggingGalt says:

      @jik: I agree. The same thing is going to happen with banks and debit cards. Except that when they start clearing checks in the middle of the day, and someone doesn’t check their balance before going to lunch….oh boy.

  4. dognose says:

    If you’re hitting your credit limit, you should probably stop spending money you don’t have.

    The one time I needed to get more money on a card during a busy month, I just paid off some of the balance mid month… and of course paid off the entire balance at the end of the month.

  5. hagirl says:

    Way I hear it jik is right on this.

  6. MostlyHarmless says:

    Whats with Capital One and the scorpion theme? Did I miss an earlier joke somewhere?

  7. frenchic says:

    I kept getting calls from Capital One so yesterday I answered. The man on the phone told me about this ‘new act’ going into effect in February of 2010 much in the same way the author of this post has described. When I told him that I didn’t want the ability to charge beyond my credit card limit period he was incredulous.

    He again tried to sell me the overdraft plan and I again requested that I not be allowed to overdraft my credit, period. The Capital One guy said to me that if I don’t agree to this new policy I might not have enough money in case of a medical or car-related emergency etc because I won’t be able to charge more than my credit limit. The thing is I ALMOST always pay my balance off in full each month–so a lack of credit is not an issue for me in case of an emergency.

    I did not appreciate being talked down to like a child, but Capital One won’t be getting any overdraft fees from me!

  8. Ronin-Democrat says:

    may I have the snake oil burger and the backstabbing pie for dessert. thank you

  9. mythago says:

    Another reason that you might temporarily go over your credit limit is a screw-up by the merchant or bank, which puts charges on your card that you did not make.

    I recently tried to pay for a lunch with a client and was told my card was declined. Luckily I had a backup card, but this was embarassing, particularly as I had carefully checked the card and knew that I had ample balance on the card.

    Turns out that a purchase I had made several days before had subsequently been run through THREE TIMES by the processing company. It was an error and they eventually fixed it, but if I had been allowed to put the lunch charge through I would have gone over my credit limit – thanks to a stupid mistake by somebody else.

  10. apd09 says:

    All your base are belong to us


  11. Cant_stop_the_rock says:

    “So you’re not giving up all your rights, you’re opting in to overlimit fees”

    Yeah, that’s what I said the first time you posted this…

  12. Its_Miller_Time says:

    Ironically, Capital One called me last night regarding this. They tried to get me to verify my zip code to ensure that it was me (okay, wierd…). Before I provided any information, I asked what the call was in reference to. The gentleman was very polite and said it was related to the new CARD Legislature and its impacts to my account.

    I simply told him I did not have time to discuss (have my hands full with a newborn) and would call later.

    I am glad I read the first post about this yesterday…because I feel I was well-informed! :)

  13. AllanG54 says:

    Unless you have a really low credit limit what would be the danger in going over it. And this seems like an oxymoron anyhow…why even set a limit if the bank is going to let you go over it. Odds are you’ll be paying interest anyhow so the added $29 is no big deal especially since you have to make your normal payment plus anything that’s over the limit when you make the next payment.

  14. alshultz says:

    That’s funny. I received my call from Capital One about the up coming credit card changes while I was reading this article. The Capital One representative made sure to let me know if I don’t agree to their overlimit fees RIGHT NOW, then I would LOSE THE OPPORTUNITY FOREVER

    No joke. It was a pretty fail-filled scare tactic, telling me if I don’t waive my right right now I won’t get the chance to do it in the future :/

    And to top it all off the representative seemed genuinely startled when I told her I wanted no part in their “emergency” protection plan. Her reaction makes me wonder how many card holders are agreeing to these fees!!! I betting you it’s a good number!

  15. Scatter says:

    I know that it’s a bit off topic but how does the CARD act effect debit card holders?

  16. ChemicallyInert says:

    When will we be able to opt-in to overdraft fees?

  17. mm16424 says:

    I must be lucky. CapOne was my first card, and it’s still my best. No, I’m not a shill for them. My CapOne card has the lowest interest rate, when I make a payment on their website, it’s credited and available next day, I don’t have to pay an “expedite” fee to make a same-day payment.

    I too “opted out” as I don’t WANT to go over my limit. Now, if I can find a bank to work my visa debit card in the same fashion.

    I generally DO know what my balances are, but if I’m in a hurry, and can’t remember, I’d rather run 3 cards and be turned down on 2 than be fee’d for the “privilege” of making a $5.00 charge that goes $2.00 over my limit.

  18. princess says:

    It makes perfect sense what’s going on, if you actually know how to read what you are given. The only reason you get a call is for verbal confirmation to keep the option on an account or not. And its not that you have to “stop charging” over limit fees, it’s is in order to be charged the OL fee, you have to have given them prior consent to Feb 22nd-