If you've ever been the victim of a fat $35 fee for exceeding your credit card limit by a few bucks, now is the time to get up and bust out your best happy dance. That is, if you happen to carry a Discover or Amex credit card in your wallet.
As reported by the Huffington Post, both Discover Financial and American Express announced yesterday that they will soon do away with over-the-limit credit card fees. We don't know what "soon" means yet, but you can count on it happening before the new credit card rules take effect next February.
That's because these fees were actually a major item addressed in the Credit CARD Act, which will require all credit card issuers to let consumers opt in before credit limits can be exceeded and fees charged. So, it may come as no surprise to you that Amex and Discover aren't simply making this change out of the kindness of their hearts for consumers.
What do you think is the most economical option for them at the moment? Building and implementing a system that will allow all customers to opt in by February 2010, or being one of the first to just cut the fees and bask in some much-needed positive PR. One lost fee can always be replaced by another, right?
Either way, it's a positive change for consumers, and hopefully one that will be followed by other major credit issuers in the coming months.
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