American Express and Discover will no longer bill customers who exceed their credit limits, according to company spokespeople. The creditors aren’t eliminating the fees because they care about their customers. No, they’re providing what American Banker calls “the first concrete examples of how a new law will restrict issuers’ abilities to turn a profit.” The new CARD Act that Congress passed in May requires consumers to opt-in before they can exceed their credit limits. Since overlimit fees, which can reach $39, aren’t very profitable for creditors, they decided to ditch the fees altogether.
credit cards
Will My Credit Score Hurt If I Pay Off And Close My Credit Card?
By 8.7.09
Does paying off and closing a credit card hurt your credit score? That’s a two-part question. The answer to the first one is no, it helps, and the answer to the second is yes, closing your credit card hurts your credit score. Credit bureau Exerpian’s “Ask Max” says,
10 Quasi-Secret Credit Card Perks
By 8.7.09
To get more mileage out your plastic, Mint.com’s got “10 Little-Known Credit Card Perks” to show you.
American Express Doesn't Care About Your Sick Dog
By 8.7.09
It’s not the responsibility of a credit card company to take care of you in an emergency, it’s true. But amid the many reports of canceled cards and slashed credit lines we’ve been receiving was the story of Elizabeth, her dog, a veterinary emergency, and a most inauspiciously timed credit line cut.
Hackers Discover Data-Stealing ATM At Convention
By 8.4.09
Nobody knows yet whether it was planted by an attendee, or if the ATM had been there for some period of time before the event, but hackers at last week’s DefCon conference in Las Vegas discovered a rogue unit that was designed to capture customers’ credit card data with each use.
Is It Worth Taking A Lower Rate In Exchange For Closing Your Credit Card?
By 7.29.09
Amy and her husband are drowning in high-interest credit card debt. When she asked Chase to lower her nasty 28-percent APR, they offered her an indecent proposal. She doesn’t know what to do.
Hacked Company: Notifying Customers Of Breach Is A "Burden"
By 7.27.09
Network Solutions, an e-commerce company, just experienced a data breach that resulted in them compromising 573,000 credit and debit card accounts. The company has begun to notify merchants of the breach so they can tell their customers, but gosh, it’s just so hard.
Credit Card Arbitration Cabal Implodes
By 7.27.09
The arbitration rollback continues apace! Last Thursday, JPMorgan Chase announced it won’t send disputes to arbitration and is rethinking putting the clauses in its consumer contracts. Coming on the heels of news that NAF and AAA will stop arbitrating consumer credit card disputes, Creditcards.com wrote, “Two more supporting beams have crumbled and now, with astonishing speed, the entire edifice of the mandatory credit card arbitration system is collapsing.”
Bank's Fix For Erroneous Charges: Disclose Personal Information To Other Customers!
By 7.27.09
Taking outsourcing to an extreme, Bank of New Zealand decided that instead of figuring out why one woman’s charges ended up on another customer’s account, they would just give the customer the woman’s name, home address, work address, email address and cellphone number so they could settle things for themselves.
Buy Safely Online With Virtual Credit Cards
By 7.27.09
Before buying from potentially unscrupulous merchants, call up your credit card company and ask for a virtual credit card number. The disposable numbers expire after a single use, preventing merchants from signing you up for added or recurring charges. Virtual numbers are available to Citi, Discover, PayPal, and Bank of America customers.
Another Arbitration Firm Pulls Out Of Credit Card Arbitration
By 7.22.09
Just days after the National Arbitration Forum agreed to stop arbitrating consumer credit card disputes, the American Arbitration Association has decided to do the same. This is good, but passage of the Arbitration Fairness Act is still necessary.
Has Your Credit Card Already Gotten Meaner?
By 7.22.09
The party is over. In advance of credit card reform that was supposed to make credit better for consumers, the banks are making terms tougher and policies less lenient. The result can be very expense for some customers. Have any of these adverse actions happened to your credit card lately? Take our poll. Multiple answers accepted.
Are You Missing Out On Secret Credit Card Perks?
By 7.20.09
Assuming you still have a credit card, you might not be getting the full use out of it. Most credit cards have certain perks that not everyone knows about.
National Arbitration Forum Exits Credit Card Dispute Business
By 7.20.09
Score one for the consumer over unfair arbitration. Just last week, Minnesota’s Attorney General sued the National Arbitration Forum (NAF) for fraud, false advertising, and deceptive trade practices—and now the company has agreed to pull out of the credit card business entirely. According to the settlement reached on July 17th, “The only business NAF can now be involved with is in arbitrating Internet domain disputes, a business it has long been in.”
What To Do When You Discover You've Been Overcharged At A Restaurant
By 7.17.09
James discovered that the waiter at a steakhouse he and his wife ate at padded his bill by 4 extra dollars, but also ran through the charge a second time with no tip at all. Now he’s wondering what to do next.
Retailers Ready To Rebel Against Credit Card Fees
By 7.17.09
You’ve all seen the $10 minimum signs at Mom & Pop stores, and while these stores aren’t supposed to be placing this type of restriction on their customers (it’s a violation of their agreement with the credit card companies) it’s important to understand why the signs are there in the first place. Fees.
Identity Theft Hysteria Overblown, Watch Your Debit Card Instead
By 7.16.09
If you need the straight story on issues of credit card, debit, and banking fraud and security, something more than “we’re taking it seriously,” Avivah Litan, VP and distinguished analyst at Gartner research is your go-to-gal. I recently interviewed her over the phone about consumers can protect themselves in an era where just keeping your mother’s maiden name a secret doesn’t cut the mustard. I learned that you can buy a credit card number for a few cents, losing your Social Security Number is NOT the most dangerous fraud that is likely to happen to you, and how Obama’s helicopter plans got stolen thanks to P2P music-sharing software…
