Consumer Payment Card News

Over-Limit Fees

Average fees for going over-the-credit-limit are taking off and may soon catch up with its nasty brother, late payment fees. Discover is joining four other top issuers in jacking up over-limit fees from $29 to $35. In new offers and cardholder notifications Discover is set to raise its over-limit fee to $35 for balances that exceed $1,000, effective April 1st. If the total Discover balance is less than $1,000, then the over-limit fee is $15. Household, Providian, Fleet, and Chase currently impose a $35 over-limit fee. Providian’s over-limit fee applies to accounts that are more than 2% over the credit limit. Fleet charges a $15 over-limit fee for balances under $500; $29 for balances between $500 and $1,000; and, $35 for balances over $1,000. Chase charges a $29 over-limit fee on all accounts except those subject to “non-preferred” pricing, which are assessed a $35 fee. Close behind is Bank of America, which now charges a $32 over-limit fee. As of the February, the average over-limit fee is $28.01, compared to $27.04 one year ago. The average late payment fee is now $30.07 compared to $28.79 one year ago.

 OVER-LIMIT FEES - TOP 10 ISSUERS

1. Citigroup $29
2. MBNA   $29
3. Bank One $29
4. Discover  $35 ($15 for Balances under $1,000)
5. Chase   $29 ($35 if non-preferred rate of prime +19.99% is in effect)
6. Capital One  $29
7. Bank of America  $32
8. Providian $35 (if credit line exceeded by 2%)
9. Household  $35
10. Fleet  $35 (if New Balance under $500 then $15; $500 up to $1,000 then $29)

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