Credit card charges

Jazzmag

Simply, interest charges have taken me overlimit. And I'm now getting overlimit charges. Is this legal?

castle96

sadly yes...

[Deleted User]

Yes. It's your responsibility to stay under the limit.

ValiantSon

Yes it is legal. You have to manage your credit to stay within your limit. If you have left a large balance on the card then interest will be applied and this could take you over your limit. Under the terms of your contract the card issuer is entitled to charge you fees for going over your limit.

I'm afraid that the only thing you can do is make a payment that will clear enough of the balance so that future interest won't take you over again.

It sounds like you have a bigger issue to deal with, however, and that is your spending exceeds your income. I suggest that it is time to take a good look at your finances and make some decisions about where you can cut your expenditure.

Kim_13

Hi, we move threads if we think they'll get more help elsewhere (please read the forum rule) so this post/thread has been moved to another board. If you have any questions about this policy please email forumteam@moneysavingexpert.com.

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As others have said, this is legal and there will be a clause in your terms and conditions allowing this. They can also charge interest on the interest and the overlimit fee.

There was an unfortunate case recently where a poster received two overlimit fees because their brief time overlimit went into the next statement period. It's important bring your account back under the limit as soon as possible.

They may refund the fee if it's a first offence and you apologise and ask nicely, but they don't have to.

chattychappy

Unfortunately, it is also possible that a report will go to a credit reference agency about your going over limit.

If possible, check your balance online and immediately send enough money to bring the card back under the limit.

Then, before the next statement, try to estimate the interest that might be applied and send a further payment so that when this is applied you aren't back above the limit.

Don't spend any further on this card until things are back under control. If you have any continuous payment authorities in place, send enough to money to cover these too.

I agree with the comment above: if you phone and ask them nicely, they may well refund the overlimit fee.

Jazzmag

Thanks all. Just seems a bit rough.

[Deleted User]

Jazzmag wrote: »

Thanks all. Just seems a bit rough.

Why is that?

T-G-C

We have all made that one mistake, but do not blame the card provider. I am sure it is viewed as also "rough" on their part for having to cover more than the credit amount you agreed to borrow.

AllieKat

Over limit charges are a joke, to be honest. It's sad we don't have cards like Visa Signature, which doesn't have these charges - instead, anything amount over the limit (if approved) is simply due that month in addition to the normal minimum payment schedule.

ValiantSon

AllieKat wrote: »

Over limit charges are a joke, to be honest. It's sad we don't have cards like Visa Signature, which doesn't have these charges - instead, anything amount over the limit (if approved) is simply due that month in addition to the normal minimum payment schedule.

How would that be fair? I have no interest in defending the card company, but if you exceed your credit limit then you have breached the terms of the contract, so it is not unreasonable that a penalty be imposed. The individual has responsibility for managing their finances.