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Excessive CC fees...is this even legal? (Nat'l City)
Old 11-03-2008, 09:01 PM   #1
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Excessive CC fees...is this even legal? (Nat'l City)

My mother has a Nat'l city CC. She was 30 bucks or so from the credit line and the interest charged on the last day of the billing cycle (29th) put her over by $3. So, she was charged $39. Crappy, but fair enough...her fault.


The part that makes me cringe is that on the 30th, the first day of the new billing cycle, she was naturally still overdue, not having received her statement. As such, since she was over the limit on her NEW billing cycle, Nat'l City assures here there will be another $39 fee for being over her credit limit during the new month.


Is this legal?
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Old 11-03-2008, 09:16 PM   #2
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What did her credit card agreement say? When in doubt pay on time. Saves you from their blood sucking tactics.
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Old 11-03-2008, 09:17 PM   #3
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Not sure about the legal part, but I would complain, and, if necessary, complain loudly. That's why I have a high "approved limit" with a relatively low monthly bill, which I pay fully each month. Since I started paying everything online, I haven't had a single case of paying late. Even when I did slip up, a phone call got it removed.
Now, as soon as I receive my statement, I "pay it" online with a delivery date of the day it's due, then my bank wires it directly on that date.
keeps my money working for me, instead of them.
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Old 11-03-2008, 10:18 PM   #4
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Well, in response to both posts, she fully intended to pay it in full this month. She has never paid late, but not always in full.

Nonetheless,the issue seems to be that the over-the-limit charge was caused by interest. Then, since a new billing period started the next day, she got ANOTHER over-the-limit fee. They agreed to waive one of the the two fees...her choice. Still doesnt seem right
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Old 11-04-2008, 06:25 AM   #5
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Still doesn't seem right
. You betcha. Is it legal? Almost certainly. Fee's are a major profit center for the credit they tend to pile them partly as a negotiating ploy and partly because they often get away with charging them.

Say they hit you with late fee, two over the limit fees, and raise your interest rate because you exceeded your credit limit hence trigger section 39 paragraph B moving the rate from 9.99% to 29.99%. You call to complain they generously waive the two late over the limit fees, but the $39 late fee and the 29.99% interest rate stays.....
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Old 11-04-2008, 07:05 AM   #6
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Try saying - take the fee off or I will cancel the card and get another from a different company or use another card.
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Old 11-04-2008, 07:57 AM   #7
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Sometimes you might be more successful w/ a supervisor. You'll also have to pick the right tactics........mad as he... or apologetic.....I'd vote for the latter first and save the first for a last second play if you're not successful. Supervisors tend to have a more global viewpoint than first-line reps. Good luck!
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Old 11-04-2008, 08:14 AM   #8
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i also have a national city cc, the one with the 4-3-2-1 cashback. the 4% is for gas and automotive category. oh yeah!
i used to pay them by paper check sent by snail mail. i had some late payment fees incorrectly assessed. so i called them up and presented the facts. 100% of the time, all fees were waived. i was reasonable on the phone and had not violated the terms of the cc agreement.
i now pay online and have had no problems since.
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Old 11-04-2008, 09:42 AM   #9
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Conisdering National City was recently bought out by PNC, I would not expect customer service to get better anytime soon.........
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Old 11-04-2008, 09:45 AM   #10
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Free market at work! Years ago credit card companies started forming their business in states that had minimal if any regulation on interest rates and other fees.
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Old 11-05-2008, 03:35 PM   #11
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Well my mom did cancel the card after visiting the branch and trying the phone cust-support one last time. No retention dept....nothing like that. Just a 'thank you...your account is now closed' So she's paying it off and moving on...although I'd prefer she kept it open for credit score purposes...but she was trying to prove a point i guess...
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Old 11-05-2008, 03:38 PM   #12
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She's WAY better off without it. Talk to her about penfed--I learned about them here on the forum and I've been really happy with them. Then again, I don't carry a balance, though. YMMV.
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Old 11-05-2008, 05:03 PM   #13
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Originally Posted by Martha View Post
Free market at work! Years ago all finance companies started forming their business in states that had minimal if any regulation on interest rates and other fees.
I changed your post to more reflect reality, in my opinion. Would you propose restrictions of multi-state financial firms and credit card companies?
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Old 11-05-2008, 05:05 PM   #14
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Originally Posted by kaneohe View Post
Sometimes you might be more successful w/ a supervisor. You'll also have to pick the right tactics........mad as he... or apologetic.....I'd vote for the latter first and save the first for a last second play if you're not successful. Supervisors tend to have a more global viewpoint than first-line reps. Good luck!
Pretty much. Supervisors tend to have more leeway, while customer service reps are just following a script.
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Old 11-05-2008, 05:46 PM   #15
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I have had fees removed from National City and others in the past...you just have to ask nicely...most of the credit card outfits are more than happy to close cards right now...forget about retentions...
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Old 11-05-2008, 06:52 PM   #16
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I changed your post to more reflect reality, in my opinion. Would you propose restrictions of multi-state financial firms and credit card companies?
Yes. Would you propose no restrictions?
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Old 11-05-2008, 10:52 PM   #17
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Free market at work!
Indeed. You are aware that there are two players in a free market - the buyer and the seller?

As always, in a free market, the buyer (of credit in this case), can take their business elsewhere. As always, in a free market, if enough people do that, the business will adapt.

Credit card debt is not something that people acting responsibly really want to get involved with. Problem solved. Don't like the product, don't like the way they conduct business, don't do business with them.

My credit card companies keep giving me money. They are convenient, I don't have to carry much cash around (which makes zero interest in my wallet), and I make fewer trips to the ATM for cash (hey - they are even good for the environment!). I kinda like that. Free market at work! Yeah!

Or, we can play the poor victim, and blame it on "free markets". Oh please, nice big govt, regulate my life so I don't have to think or make choices, those bad companies will just take advantage of me and make me sad and poor. It's not my fault. sob, sob, sob.

ooops - I just looked up and saw we weren't in the SoapBox - hey - you started it, Martha!

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Old 11-06-2008, 10:39 AM   #18
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Would you propose restrictions of multi-state financial firms and credit card companies?
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Yes. Would you propose no restrictions?
See the post right above this one. Those seeking to borrow money from financial companies have dozens of choices, because there are few restrictions. If you only allowed companies to operate in their state of incorporation, you'd have a lot fewer choices, and worse options. This type of restriction would create monopoly-like pricing powers to local finance companies. Why would you want to restrict choice? Do you think fewer choices can ever be better for you?
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