• Report: #186563

Complaint Review: JPMorgan Chase & Company

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  • Submitted: Thu, April 13, 2006
  • Updated: Fri, August 10, 2007

  • Reported By:NorCAL California
JPMorgan Chase & Company
bankone.com Wilmington, Delaware U.S.A.

Chase Credit Cards JPMorgan Chase & Company, BANK ONE Overlimit Fees - avoid them hidden cost Wilmington Delaware

*Consumer Suggestion: Sending a letter to change The Card Member Agreement . . .

*Consumer Suggestion: Sending a letter to change The Card Member Agreement . . .

*Consumer Suggestion: Sending a letter to change The Card Member Agreement . . .

*Consumer Suggestion: Sending a letter to change The Card Member Agreement . . .

*Consumer Suggestion: A much simpler solution...

*Consumer Suggestion: Notify Your Credit Card Company in Writing to Not Approve Charges Which Will Take You Over Your Credit Limit

*Consumer Suggestion: Notify Your Credit Card Company in Writing to Not Approve Charges Which Will Take You Over Your Credit Limit

*Consumer Suggestion: Notify Your Credit Card Company in Writing to Not Approve Charges Which Will Take You Over Your Credit Limit

*Consumer Suggestion: Notify Your Credit Card Company in Writing to Not Approve Charges Which Will Take You Over Your Credit Limit

*Consumer Suggestion: Suggestion for the X-Chase customer..

*Consumer Suggestion: Be careful when charging gasoline!

*Consumer Suggestion: Be careful when charging gasoline!

*Consumer Suggestion: Be careful when charging gasoline!

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The overlimit fee that Chase charged me IS a ripoff!! $39 in charges for going over my credit limit. Why wouldn't the card be set up so that you can't exceed the limit by default?? Yeah, I really wanted that $39 charge for going over my limit by a hundred bucks. If only my previous month's payment went through two days earlier, I wouldn't have got the charge.

When I called CHASE, they said that it's a valid charge, and that they would be happy to change my account, so that there is no overlimit fees. But isn't it common sense that you would set up the account like that in the first place? If your credit card contract had a box to check to allow for overlimits for a $39 charge for each event, I wonder how many people would sign up??? Hmmmm....

Who need them anyways. Go cancel on CHASE because there are plenty other credit card companies to choose from, that aren't so shady (trying to make a few bucks on unsuspecting customers.) I bet the genius who thought up this fee got a fatty bonus for the millions CHASE makes off it.

Oh well. I guess they don't need my business.

If you don't cancel your credit card with CHASE, at least be sure to make sure your account doesn't allow for overlimit fees. Yes you have to call in to do this, and ask them to set it up the way your account should be.

Hope this helps out some of you, and thanks for reading.
In conclusion, ripoffreport.com is a great site!! thanks for letting me vent off some steam.

X-Chase customer
NorCAL, California
U.S.A.

This report was posted on Ripoff Report on 04/13/2006 10:10 PM and is a permanent record located here: http://www.ripoffreport.com/r/JPMorgan-Chase-Company/Wilmington-Delaware-19899-8650/Chase-Credit-Cards-JPMorgan-Chase-Company-BANK-ONE-Overlimit-Fees-avoid-them-hidden-c-186563. The posting time indicated is Arizona local time. Arizona does not observe daylight savings so the post time may be Mountain or Pacific depending on the time of year.

Ripoff Report has an exclusive license to this report. It may not be copied without the written permission of Ripoff Report.

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#1 Consumer Suggestion

Sending a letter to change The Card Member Agreement . . .

AUTHOR: Chris - (U.S.A.)

Doesn't work. They may recieve the letter and acknoledge getting it, but they won't change a thing. Just save your time, and keep your balance low on your credit card. It's a lie when you say you didn't know you were that close to your limit. Be an adult.
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#2 Consumer Suggestion

Sending a letter to change The Card Member Agreement . . .

AUTHOR: Chris - (U.S.A.)

Doesn't work. They may recieve the letter and acknoledge getting it, but they won't change a thing. Just save your time, and keep your balance low on your credit card. It's a lie when you say you didn't know you were that close to your limit. Be an adult.
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#3 Consumer Suggestion

Sending a letter to change The Card Member Agreement . . .

AUTHOR: Chris - (U.S.A.)

Doesn't work. They may recieve the letter and acknoledge getting it, but they won't change a thing. Just save your time, and keep your balance low on your credit card. It's a lie when you say you didn't know you were that close to your limit. Be an adult.
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#4 Consumer Suggestion

Sending a letter to change The Card Member Agreement . . .

AUTHOR: Chris - (U.S.A.)

Doesn't work. They may recieve the letter and acknoledge getting it, but they won't change a thing. Just save your time, and keep your balance low on your credit card. It's a lie when you say you didn't know you were that close to your limit. Be an adult.
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#5 Consumer Suggestion

A much simpler solution...

AUTHOR: Mike - (U.S.A.)

Brad's plan may not always work. The company could refuse to change the terms of the account and tell you that you can use it under their terms where they may approve charges over the limit, or close the account.

It's actually simpler than this. Realize that the credit limit is not money you should use. It is a number they've set up to tempt you and see what happens. Unless you're dealing with a "starter" card having a limit of $500.00 or less, the limit has been set by a formula based on your income. This formula is DESIGNED so it will be difficult or impossible to ever pay off the account when it is at the limit. That is another trap they hope you'll fall into.

Every consumer should stay well under HALF of their credit limits. (This seems silly on a $300 card, but it is still important with those.) If you do that, the banks will respond with offers of more cards, better APR's, and, ironically, higher limits. And of course no overlimit fees. Having credit cards, but with low or even zero balances, will improve your credit score for better deals on car loans and mortgages.
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#6 Consumer Suggestion

Notify Your Credit Card Company in Writing to Not Approve Charges Which Will Take You Over Your Credit Limit

AUTHOR: Brad - (U.S.A.)

The best thing you can do is send a signed letter to your credit card company and give them the directive to decline any charges that will take you over your credit limit. Further state in the letter that your available credit needs to be calculated as follows: Credit Limit - Current Balance - Pending Authorizations that have not posted = Available Credit and only use this "Available Credit" amount to approve charges and do not approve any charges beyond that amount. I would fax the letter or send it via certified mail, return receipt requested or send Fed Ex or UPS so you have proof of delivery.

A previous poster mentioned to call the credit card company and tell them verbally to put this restriction on your account. I do not advise calling them, as you have no proof of the conversation and/or them taking action. You stand a stronger chance for the credit card company to continue this abuse and use the BS defense "we do it as a courtesy to you" and "the cardholder agreement states we may approve charges that take you over the limit.... If you get an over limit fee, because you relied on a phone call made to them which instructed them not to approve charges that will go over the limit, then the burden of proof is going to be on you to prove they knew not to do this. They will tell you things like " I don't see that noted anywhere on the account", "I am reviewing the notes and do not show any case notes on that", "We don't show record of that conversation occurring" and "We do it as a courtesy to you". At this point, you have proof of the letter and a proof of delivery, and then you can fire back at them and say, "I did send it to you on xx-xx-xxxx and XXXXXXXXXX signed for it.

The bottom line here is profit and exploitation. The card companies are going to prey upon consumer's ignorance and the fact that very few people challenge their credit card company's decisions and practices. The real reason the card companies intentionally approve charges that take you over the limit is so they can charge an over limit fee and raise your interest rate to reap more profit as you are now in default because you went over your credit limit. The card company will justify it as "doing it as a courtesy for you" and will shift the blame back to you for not managing your account so they can further exploit you. So stand up to these predatory monsters and stop their abusive and exploitative practices that steal your money and send all your creditors a letter and inform them to not approve any charges that will take you over your assigned credit limit. I have shown below this post, an example of a letter I use.

Bear in mind the following items can cause you to go over your credit limit and the card company will try to disclaim liability for you going over the limit if any of them occur:

1)Finance charges, as previous poster mentioned. This verys by card company so check cardholder agreement. Target Visa does not charge an over limit fee if finance charges cause the account to go over the limit. Most state chartered banks, credit unions and local banks don't charge over limit fees if finance charges cause the account to go over the limit. Retail store cards, such as Lowes, Kohls, Old Navy and Home Depot do not charge over limit fees because of finance charges. It is primarily your large federal banks, like Bank of America and Chase, who have earnings targets to meet and shareholders to appease that engage in this predatory tactic.

2)Gas charges, as previous poster mentioned and he is correct.

3)Pre-approved hotel charges, even if actual mount is greater then original amount authorized, so watch those extra add-on charges like room service, telephone calls and internet usage.

4)Monthly recurring payments that are setup as automatic payments or bill payments are paid regardless of credit limit.

5)Any merchant authorization that is older then 7 days will fall off and release the amount as open credit if the merchant has not batched out their batch. Example- I go to Target today and spend $100 on my Visa. The card company now subtracts $100 from my available credit. Next Saturday, Target has not batched their terminal and submitted the credit card batch. The authorization is released and the $100 becomes available credit. The card company assumes the charge was cancelled or is no longer valid. Target comes back on the following Monday, almost 10 days later, and finally transmits the batch from their terminal. The charge posts to your account on Tuesday, 11 days later, and you are now over your credit limit because you thought all the charges had posted to your account by the 6th day so you use the card and spend $50 because you assumed the $100 Target charge had posted when it really had not.

The best thing anyone can do when it comes to dealing with your card company is to evidence every phone conversation in writing or only correspond with you card company via written communications. You will have your documentation and proof of delivery to battle them down the road if they do not comply.

Without documentation and proof of delivery, you will loose and cannot prove what they said or told you if they try to deny it. After you have a phone conversation, draft the details of the conversation and be sure to include the following items in the letter: the resolution(s), promises(s), consequence(s)and with whom you spoke (Be sure to get employee's name, employee number and what call center location or office location he/she is located). The ball is now in their court and you have been empowered so if they try to pull any tricks on you or disclaim liability. As long as you have proof of delivery in the form of a mail receipt, fax confirmation page or Airbill, and you have not received a rebuttal from the company then you can be assured the matter is resolved. You are now in a position to defend the issue if it arises again or you suffer damages because of the card company's negligence or mis-management of your account.


XXXX Xxxxxxxxxxxx Drive
Plano, TX 75024
March 29, 2006

Wachovia Bankcard Services
P.O. Box 15287
Wilmington, DE 19886-5287

RE: Request to Not Approve Charges That Will Take Balance Over Credit Limit on Wachovia Visa Account # XXXX-XXXX-XXXX-XXXX

Dear Wachovia Bankcard Services,

Please let this letter serve as official notification to Wachovia, per my request, to not authorize and/or approve any charges that will cause the aforementioned Wachovia Visa account balance to go over the assigned credit limit. Please calculate my available credit as follows: Account Ledger Balance (Sum of posted transactions + finance charges payments) plus any outstanding merchant credit card authorizations less credit limit equals available credit and amount to approve for purchases.

Example:
Credit Limit - $11,000
Account Balance - $10,862
Pending Authorization to Wal-Mart - $100
Available Credit ($11,000 $10,862 $100) = $38

Based on the example above, I would expect a charge or aggregate of charges totaling $38 or less to be approved and any amount or aggregate amount of charges over $38 or greater then my available credit, as calculated in the example above, to be declined at the point of sale.

I will not assume any liability for over limit fees assessed on the aforementioned account that result from Wachovia approving charges that take the account over the assigned credit limit when this letter has directed Wachovia to not approve charges that will take the account over the assigned credit limit.

In the event Wachovia approves a charge or charges on the aforementioned account that is/are greater then the available credit and the charge(s) cause(s) the account balance to go over the limit and the account to reprice to a higher interest rate, I will not assume any liability for the interest rate re-pricing increase. I will expect the interest rate to return to the rate prior to re-pricing and any excess finance charges reversed on the account.

Please feel free to contact me at (972)XXX-XXXX with any questions.




Sincerely,


XXXXXXXXX XXXXXXXXX
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#7 Consumer Suggestion

Notify Your Credit Card Company in Writing to Not Approve Charges Which Will Take You Over Your Credit Limit

AUTHOR: Brad - (U.S.A.)

The best thing you can do is send a signed letter to your credit card company and give them the directive to decline any charges that will take you over your credit limit. Further state in the letter that your available credit needs to be calculated as follows: Credit Limit - Current Balance - Pending Authorizations that have not posted = Available Credit and only use this "Available Credit" amount to approve charges and do not approve any charges beyond that amount. I would fax the letter or send it via certified mail, return receipt requested or send Fed Ex or UPS so you have proof of delivery.

A previous poster mentioned to call the credit card company and tell them verbally to put this restriction on your account. I do not advise calling them, as you have no proof of the conversation and/or them taking action. You stand a stronger chance for the credit card company to continue this abuse and use the BS defense "we do it as a courtesy to you" and "the cardholder agreement states we may approve charges that take you over the limit.... If you get an over limit fee, because you relied on a phone call made to them which instructed them not to approve charges that will go over the limit, then the burden of proof is going to be on you to prove they knew not to do this. They will tell you things like " I don't see that noted anywhere on the account", "I am reviewing the notes and do not show any case notes on that", "We don't show record of that conversation occurring" and "We do it as a courtesy to you". At this point, you have proof of the letter and a proof of delivery, and then you can fire back at them and say, "I did send it to you on xx-xx-xxxx and XXXXXXXXXX signed for it.

The bottom line here is profit and exploitation. The card companies are going to prey upon consumer's ignorance and the fact that very few people challenge their credit card company's decisions and practices. The real reason the card companies intentionally approve charges that take you over the limit is so they can charge an over limit fee and raise your interest rate to reap more profit as you are now in default because you went over your credit limit. The card company will justify it as "doing it as a courtesy for you" and will shift the blame back to you for not managing your account so they can further exploit you. So stand up to these predatory monsters and stop their abusive and exploitative practices that steal your money and send all your creditors a letter and inform them to not approve any charges that will take you over your assigned credit limit. I have shown below this post, an example of a letter I use.

Bear in mind the following items can cause you to go over your credit limit and the card company will try to disclaim liability for you going over the limit if any of them occur:

1)Finance charges, as previous poster mentioned. This verys by card company so check cardholder agreement. Target Visa does not charge an over limit fee if finance charges cause the account to go over the limit. Most state chartered banks, credit unions and local banks don't charge over limit fees if finance charges cause the account to go over the limit. Retail store cards, such as Lowes, Kohls, Old Navy and Home Depot do not charge over limit fees because of finance charges. It is primarily your large federal banks, like Bank of America and Chase, who have earnings targets to meet and shareholders to appease that engage in this predatory tactic.

2)Gas charges, as previous poster mentioned and he is correct.

3)Pre-approved hotel charges, even if actual mount is greater then original amount authorized, so watch those extra add-on charges like room service, telephone calls and internet usage.

4)Monthly recurring payments that are setup as automatic payments or bill payments are paid regardless of credit limit.

5)Any merchant authorization that is older then 7 days will fall off and release the amount as open credit if the merchant has not batched out their batch. Example- I go to Target today and spend $100 on my Visa. The card company now subtracts $100 from my available credit. Next Saturday, Target has not batched their terminal and submitted the credit card batch. The authorization is released and the $100 becomes available credit. The card company assumes the charge was cancelled or is no longer valid. Target comes back on the following Monday, almost 10 days later, and finally transmits the batch from their terminal. The charge posts to your account on Tuesday, 11 days later, and you are now over your credit limit because you thought all the charges had posted to your account by the 6th day so you use the card and spend $50 because you assumed the $100 Target charge had posted when it really had not.

The best thing anyone can do when it comes to dealing with your card company is to evidence every phone conversation in writing or only correspond with you card company via written communications. You will have your documentation and proof of delivery to battle them down the road if they do not comply.

Without documentation and proof of delivery, you will loose and cannot prove what they said or told you if they try to deny it. After you have a phone conversation, draft the details of the conversation and be sure to include the following items in the letter: the resolution(s), promises(s), consequence(s)and with whom you spoke (Be sure to get employee's name, employee number and what call center location or office location he/she is located). The ball is now in their court and you have been empowered so if they try to pull any tricks on you or disclaim liability. As long as you have proof of delivery in the form of a mail receipt, fax confirmation page or Airbill, and you have not received a rebuttal from the company then you can be assured the matter is resolved. You are now in a position to defend the issue if it arises again or you suffer damages because of the card company's negligence or mis-management of your account.


XXXX Xxxxxxxxxxxx Drive
Plano, TX 75024
March 29, 2006

Wachovia Bankcard Services
P.O. Box 15287
Wilmington, DE 19886-5287

RE: Request to Not Approve Charges That Will Take Balance Over Credit Limit on Wachovia Visa Account # XXXX-XXXX-XXXX-XXXX

Dear Wachovia Bankcard Services,

Please let this letter serve as official notification to Wachovia, per my request, to not authorize and/or approve any charges that will cause the aforementioned Wachovia Visa account balance to go over the assigned credit limit. Please calculate my available credit as follows: Account Ledger Balance (Sum of posted transactions + finance charges payments) plus any outstanding merchant credit card authorizations less credit limit equals available credit and amount to approve for purchases.

Example:
Credit Limit - $11,000
Account Balance - $10,862
Pending Authorization to Wal-Mart - $100
Available Credit ($11,000 $10,862 $100) = $38

Based on the example above, I would expect a charge or aggregate of charges totaling $38 or less to be approved and any amount or aggregate amount of charges over $38 or greater then my available credit, as calculated in the example above, to be declined at the point of sale.

I will not assume any liability for over limit fees assessed on the aforementioned account that result from Wachovia approving charges that take the account over the assigned credit limit when this letter has directed Wachovia to not approve charges that will take the account over the assigned credit limit.

In the event Wachovia approves a charge or charges on the aforementioned account that is/are greater then the available credit and the charge(s) cause(s) the account balance to go over the limit and the account to reprice to a higher interest rate, I will not assume any liability for the interest rate re-pricing increase. I will expect the interest rate to return to the rate prior to re-pricing and any excess finance charges reversed on the account.

Please feel free to contact me at (972)XXX-XXXX with any questions.




Sincerely,


XXXXXXXXX XXXXXXXXX
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#8 Consumer Suggestion

Notify Your Credit Card Company in Writing to Not Approve Charges Which Will Take You Over Your Credit Limit

AUTHOR: Brad - (U.S.A.)

The best thing you can do is send a signed letter to your credit card company and give them the directive to decline any charges that will take you over your credit limit. Further state in the letter that your available credit needs to be calculated as follows: Credit Limit - Current Balance - Pending Authorizations that have not posted = Available Credit and only use this "Available Credit" amount to approve charges and do not approve any charges beyond that amount. I would fax the letter or send it via certified mail, return receipt requested or send Fed Ex or UPS so you have proof of delivery.

A previous poster mentioned to call the credit card company and tell them verbally to put this restriction on your account. I do not advise calling them, as you have no proof of the conversation and/or them taking action. You stand a stronger chance for the credit card company to continue this abuse and use the BS defense "we do it as a courtesy to you" and "the cardholder agreement states we may approve charges that take you over the limit.... If you get an over limit fee, because you relied on a phone call made to them which instructed them not to approve charges that will go over the limit, then the burden of proof is going to be on you to prove they knew not to do this. They will tell you things like " I don't see that noted anywhere on the account", "I am reviewing the notes and do not show any case notes on that", "We don't show record of that conversation occurring" and "We do it as a courtesy to you". At this point, you have proof of the letter and a proof of delivery, and then you can fire back at them and say, "I did send it to you on xx-xx-xxxx and XXXXXXXXXX signed for it.

The bottom line here is profit and exploitation. The card companies are going to prey upon consumer's ignorance and the fact that very few people challenge their credit card company's decisions and practices. The real reason the card companies intentionally approve charges that take you over the limit is so they can charge an over limit fee and raise your interest rate to reap more profit as you are now in default because you went over your credit limit. The card company will justify it as "doing it as a courtesy for you" and will shift the blame back to you for not managing your account so they can further exploit you. So stand up to these predatory monsters and stop their abusive and exploitative practices that steal your money and send all your creditors a letter and inform them to not approve any charges that will take you over your assigned credit limit. I have shown below this post, an example of a letter I use.

Bear in mind the following items can cause you to go over your credit limit and the card company will try to disclaim liability for you going over the limit if any of them occur:

1)Finance charges, as previous poster mentioned. This verys by card company so check cardholder agreement. Target Visa does not charge an over limit fee if finance charges cause the account to go over the limit. Most state chartered banks, credit unions and local banks don't charge over limit fees if finance charges cause the account to go over the limit. Retail store cards, such as Lowes, Kohls, Old Navy and Home Depot do not charge over limit fees because of finance charges. It is primarily your large federal banks, like Bank of America and Chase, who have earnings targets to meet and shareholders to appease that engage in this predatory tactic.

2)Gas charges, as previous poster mentioned and he is correct.

3)Pre-approved hotel charges, even if actual mount is greater then original amount authorized, so watch those extra add-on charges like room service, telephone calls and internet usage.

4)Monthly recurring payments that are setup as automatic payments or bill payments are paid regardless of credit limit.

5)Any merchant authorization that is older then 7 days will fall off and release the amount as open credit if the merchant has not batched out their batch. Example- I go to Target today and spend $100 on my Visa. The card company now subtracts $100 from my available credit. Next Saturday, Target has not batched their terminal and submitted the credit card batch. The authorization is released and the $100 becomes available credit. The card company assumes the charge was cancelled or is no longer valid. Target comes back on the following Monday, almost 10 days later, and finally transmits the batch from their terminal. The charge posts to your account on Tuesday, 11 days later, and you are now over your credit limit because you thought all the charges had posted to your account by the 6th day so you use the card and spend $50 because you assumed the $100 Target charge had posted when it really had not.

The best thing anyone can do when it comes to dealing with your card company is to evidence every phone conversation in writing or only correspond with you card company via written communications. You will have your documentation and proof of delivery to battle them down the road if they do not comply.

Without documentation and proof of delivery, you will loose and cannot prove what they said or told you if they try to deny it. After you have a phone conversation, draft the details of the conversation and be sure to include the following items in the letter: the resolution(s), promises(s), consequence(s)and with whom you spoke (Be sure to get employee's name, employee number and what call center location or office location he/she is located). The ball is now in their court and you have been empowered so if they try to pull any tricks on you or disclaim liability. As long as you have proof of delivery in the form of a mail receipt, fax confirmation page or Airbill, and you have not received a rebuttal from the company then you can be assured the matter is resolved. You are now in a position to defend the issue if it arises again or you suffer damages because of the card company's negligence or mis-management of your account.


XXXX Xxxxxxxxxxxx Drive
Plano, TX 75024
March 29, 2006

Wachovia Bankcard Services
P.O. Box 15287
Wilmington, DE 19886-5287

RE: Request to Not Approve Charges That Will Take Balance Over Credit Limit on Wachovia Visa Account # XXXX-XXXX-XXXX-XXXX

Dear Wachovia Bankcard Services,

Please let this letter serve as official notification to Wachovia, per my request, to not authorize and/or approve any charges that will cause the aforementioned Wachovia Visa account balance to go over the assigned credit limit. Please calculate my available credit as follows: Account Ledger Balance (Sum of posted transactions + finance charges payments) plus any outstanding merchant credit card authorizations less credit limit equals available credit and amount to approve for purchases.

Example:
Credit Limit - $11,000
Account Balance - $10,862
Pending Authorization to Wal-Mart - $100
Available Credit ($11,000 $10,862 $100) = $38

Based on the example above, I would expect a charge or aggregate of charges totaling $38 or less to be approved and any amount or aggregate amount of charges over $38 or greater then my available credit, as calculated in the example above, to be declined at the point of sale.

I will not assume any liability for over limit fees assessed on the aforementioned account that result from Wachovia approving charges that take the account over the assigned credit limit when this letter has directed Wachovia to not approve charges that will take the account over the assigned credit limit.

In the event Wachovia approves a charge or charges on the aforementioned account that is/are greater then the available credit and the charge(s) cause(s) the account balance to go over the limit and the account to reprice to a higher interest rate, I will not assume any liability for the interest rate re-pricing increase. I will expect the interest rate to return to the rate prior to re-pricing and any excess finance charges reversed on the account.

Please feel free to contact me at (972)XXX-XXXX with any questions.




Sincerely,


XXXXXXXXX XXXXXXXXX
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#9 Consumer Suggestion

Notify Your Credit Card Company in Writing to Not Approve Charges Which Will Take You Over Your Credit Limit

AUTHOR: Brad - (U.S.A.)

The best thing you can do is send a signed letter to your credit card company and give them the directive to decline any charges that will take you over your credit limit. Further state in the letter that your available credit needs to be calculated as follows: Credit Limit - Current Balance - Pending Authorizations that have not posted = Available Credit and only use this "Available Credit" amount to approve charges and do not approve any charges beyond that amount. I would fax the letter or send it via certified mail, return receipt requested or send Fed Ex or UPS so you have proof of delivery.

A previous poster mentioned to call the credit card company and tell them verbally to put this restriction on your account. I do not advise calling them, as you have no proof of the conversation and/or them taking action. You stand a stronger chance for the credit card company to continue this abuse and use the BS defense "we do it as a courtesy to you" and "the cardholder agreement states we may approve charges that take you over the limit.... If you get an over limit fee, because you relied on a phone call made to them which instructed them not to approve charges that will go over the limit, then the burden of proof is going to be on you to prove they knew not to do this. They will tell you things like " I don't see that noted anywhere on the account", "I am reviewing the notes and do not show any case notes on that", "We don't show record of that conversation occurring" and "We do it as a courtesy to you". At this point, you have proof of the letter and a proof of delivery, and then you can fire back at them and say, "I did send it to you on xx-xx-xxxx and XXXXXXXXXX signed for it.

The bottom line here is profit and exploitation. The card companies are going to prey upon consumer's ignorance and the fact that very few people challenge their credit card company's decisions and practices. The real reason the card companies intentionally approve charges that take you over the limit is so they can charge an over limit fee and raise your interest rate to reap more profit as you are now in default because you went over your credit limit. The card company will justify it as "doing it as a courtesy for you" and will shift the blame back to you for not managing your account so they can further exploit you. So stand up to these predatory monsters and stop their abusive and exploitative practices that steal your money and send all your creditors a letter and inform them to not approve any charges that will take you over your assigned credit limit. I have shown below this post, an example of a letter I use.

Bear in mind the following items can cause you to go over your credit limit and the card company will try to disclaim liability for you going over the limit if any of them occur:

1)Finance charges, as previous poster mentioned. This verys by card company so check cardholder agreement. Target Visa does not charge an over limit fee if finance charges cause the account to go over the limit. Most state chartered banks, credit unions and local banks don't charge over limit fees if finance charges cause the account to go over the limit. Retail store cards, such as Lowes, Kohls, Old Navy and Home Depot do not charge over limit fees because of finance charges. It is primarily your large federal banks, like Bank of America and Chase, who have earnings targets to meet and shareholders to appease that engage in this predatory tactic.

2)Gas charges, as previous poster mentioned and he is correct.

3)Pre-approved hotel charges, even if actual mount is greater then original amount authorized, so watch those extra add-on charges like room service, telephone calls and internet usage.

4)Monthly recurring payments that are setup as automatic payments or bill payments are paid regardless of credit limit.

5)Any merchant authorization that is older then 7 days will fall off and release the amount as open credit if the merchant has not batched out their batch. Example- I go to Target today and spend $100 on my Visa. The card company now subtracts $100 from my available credit. Next Saturday, Target has not batched their terminal and submitted the credit card batch. The authorization is released and the $100 becomes available credit. The card company assumes the charge was cancelled or is no longer valid. Target comes back on the following Monday, almost 10 days later, and finally transmits the batch from their terminal. The charge posts to your account on Tuesday, 11 days later, and you are now over your credit limit because you thought all the charges had posted to your account by the 6th day so you use the card and spend $50 because you assumed the $100 Target charge had posted when it really had not.

The best thing anyone can do when it comes to dealing with your card company is to evidence every phone conversation in writing or only correspond with you card company via written communications. You will have your documentation and proof of delivery to battle them down the road if they do not comply.

Without documentation and proof of delivery, you will loose and cannot prove what they said or told you if they try to deny it. After you have a phone conversation, draft the details of the conversation and be sure to include the following items in the letter: the resolution(s), promises(s), consequence(s)and with whom you spoke (Be sure to get employee's name, employee number and what call center location or office location he/she is located). The ball is now in their court and you have been empowered so if they try to pull any tricks on you or disclaim liability. As long as you have proof of delivery in the form of a mail receipt, fax confirmation page or Airbill, and you have not received a rebuttal from the company then you can be assured the matter is resolved. You are now in a position to defend the issue if it arises again or you suffer damages because of the card company's negligence or mis-management of your account.


XXXX Xxxxxxxxxxxx Drive
Plano, TX 75024
March 29, 2006

Wachovia Bankcard Services
P.O. Box 15287
Wilmington, DE 19886-5287

RE: Request to Not Approve Charges That Will Take Balance Over Credit Limit on Wachovia Visa Account # XXXX-XXXX-XXXX-XXXX

Dear Wachovia Bankcard Services,

Please let this letter serve as official notification to Wachovia, per my request, to not authorize and/or approve any charges that will cause the aforementioned Wachovia Visa account balance to go over the assigned credit limit. Please calculate my available credit as follows: Account Ledger Balance (Sum of posted transactions + finance charges payments) plus any outstanding merchant credit card authorizations less credit limit equals available credit and amount to approve for purchases.

Example:
Credit Limit - $11,000
Account Balance - $10,862
Pending Authorization to Wal-Mart - $100
Available Credit ($11,000 $10,862 $100) = $38

Based on the example above, I would expect a charge or aggregate of charges totaling $38 or less to be approved and any amount or aggregate amount of charges over $38 or greater then my available credit, as calculated in the example above, to be declined at the point of sale.

I will not assume any liability for over limit fees assessed on the aforementioned account that result from Wachovia approving charges that take the account over the assigned credit limit when this letter has directed Wachovia to not approve charges that will take the account over the assigned credit limit.

In the event Wachovia approves a charge or charges on the aforementioned account that is/are greater then the available credit and the charge(s) cause(s) the account balance to go over the limit and the account to reprice to a higher interest rate, I will not assume any liability for the interest rate re-pricing increase. I will expect the interest rate to return to the rate prior to re-pricing and any excess finance charges reversed on the account.

Please feel free to contact me at (972)XXX-XXXX with any questions.




Sincerely,


XXXXXXXXX XXXXXXXXX
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#10 Consumer Suggestion

Suggestion for the X-Chase customer..

AUTHOR: Steve - (U.S.A.)

X-Chase,

Why be that close to your credit limit?

And, keep in mind that your finance charge can put you over limit. This is how it is done now. The finance charge is added to your balance every month.

Look at your statement and see what your monthly finance charge is and add about a $20 cushion and just stay under that amount.

Even with the new option you selected, you can still be charged an OL fee because finance charge puts you OL.

All cards are doing this now, and all cards are in the $39 area for OL fees.
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#11 Consumer Suggestion

Be careful when charging gasoline!

AUTHOR: Nikki - (U.S.A.)

When you purchase gasoline at the pump, the station only holds $1 or $2 on your account to make sure the account is valid. Then, when the charge gets posted (couple days later) many find they were allowed by the credit card companies to go over their limit. Be extra careful when charging gas because the credit card companies do not know how much you charged until it gets posted and by then they have already allowed you to make other purchases on that available credit that you probably thought you had.
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#12 Consumer Suggestion

Be careful when charging gasoline!

AUTHOR: Nikki - (U.S.A.)

When you purchase gasoline at the pump, the station only holds $1 or $2 on your account to make sure the account is valid. Then, when the charge gets posted (couple days later) many find they were allowed by the credit card companies to go over their limit. Be extra careful when charging gas because the credit card companies do not know how much you charged until it gets posted and by then they have already allowed you to make other purchases on that available credit that you probably thought you had.
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#13 Consumer Suggestion

Be careful when charging gasoline!

AUTHOR: Nikki - (U.S.A.)

When you purchase gasoline at the pump, the station only holds $1 or $2 on your account to make sure the account is valid. Then, when the charge gets posted (couple days later) many find they were allowed by the credit card companies to go over their limit. Be extra careful when charging gas because the credit card companies do not know how much you charged until it gets posted and by then they have already allowed you to make other purchases on that available credit that you probably thought you had.
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