Overlimit fees and Past Due Fees

by Martha
(North Carolina)

Is there a limit to the amount of fees a credit card company can charge above and beyond the actual credit limit? I have a credit card that I've been paying on since I was 19 years old that has a $1,000.00 credit limit. Of course, I reached that limit and couldn't pay it back, so the late fees and overlimit fees started piling up. I am now 32 and still paying this card, which currently has a balance of approximately $4,000.00. Any help you can offer would be greatly appreciated. Thanks!

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Sep 08, 2010
overlimit fees quadruple debt
by: Gerri & Mary

Ugh! unfortunately, you're not the only consumer who is experienced this kind of problem. When Congress held hearings on the proposed credit card reform legislation, there were some witnesses who shared similar stories about how their credit card debt mushroomed with interest and fees.

The final reforms of the Credit CARD Act went into effect on August 22, 2010, and they limit penalty fees to $25 (more for chronic offenders), as well as permitting only one penalty fee per transaction. In other words, you can't be charged a late fee and bounced check fee for the same payment that didn't clear.

at this point it sounds like you need a plan to retire that debt. You may want to talk with a reputable credit counseling agency to see whether they could help you work out a payment plan, or you may want to consider negotiating with a creditor to settle the debt. You can learn more about that option by listening to our debt settlement podcast.


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