Don’t Get Fooled: Opt Out of Opting In
Photo by Mykl Roventine
Should you opt out, opt in, opt in to opting out, or opt out of opting in?
So many choices! But when it comes to over-the-limit fees, there’s only one answer in my mind— opting out.
One of the major provisions in the CARD Act of 2009 is that banks will no longer be able to charge over-the-limit fees unless customers choose to be allowed to make purchases in excess of their credit limits. So, you will have the right to “opt out” of over-the-limit fees, which are often as high as $39, by simply telling your bank you would rather live within your credit limit.
The concept sounds clear enough, but I’ve heard a lot of stories lately about consumers who have been duped into giving up their new rights under the CARD Act.
If you receive a call from your credit issuer referencing over-the-limit charges, be very cautious. Don’t let it happen to you too!
Here’s how the whole pitch might go down:
- Credit issuer calls to explain how the new federal regulations will change your credit card account in 2010
- A rep then explains that starting next February any charge in excess of your credit limit will be denied
You’re half listening to the conversation while eating dinner and watching the latest episode of “The Biggest Loser” on DVR. So, you hear the words