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#1349656 - 02/26/10 03:25 PM Over Limit charges under Reg Z
Soccer Offline
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Joined: Jan 2010
Posts: 995
Utopia
I understand that the over the limit fee is part of the 2009 Credit Card act , my question is does this new rule also pertain to all open credit ie: Lines of Credits, Checking OD lines, Home Equity lines.

Thanks
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#1349882 - 02/26/10 06:45 PM Re: Over Limit charges under Reg Z Soccer
Phoenix Offline
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Joined: May 2003
Posts: 832
southeast
Please be more specific. There's a thought that if you reduce a customer's credit limit on ANY non-HELOC open-end account, you can't charge an overlimit fee on the newly reduced limit until/unless you've satisfied the 45-day advance notice rules. The HELOC proposal may also lean this way, but that's not finalized yet.
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#1349924 - 02/26/10 07:11 PM Re: Over Limit charges under Reg Z Phoenix
Soccer Offline
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Posts: 995
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I am speaking of an overdraft account or a line of credit that is only accessed through either a checking account or by writing a LOC check. This would not have anything to do with lowering a limit just strictly if the customer exceeded their line and we honored the transaction which brought them over the limit.
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#1386258 - 05/05/10 03:55 PM Re: Over Limit charges under Reg Z Soccer
river girl Offline
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Joined: Nov 2004
Posts: 1,004
We removed overlimit fees from our Visa loans. However, when a consumer uses a "convenience check" attached to their VISA, we are choosing to pay and charge an overlimit fee.
Can we do this?

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#1386389 - 05/05/10 06:10 PM Re: Over Limit charges under Reg Z river girl
Phoenix Offline
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Joined: May 2003
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southeast
If this is a credit card product, then 226.56(a) seems relevant: (a) Definition. For purposes of this section, the term “over-the-limit transaction” means any extension of credit by a card issuer to complete a transaction that causes a consumer’s credit card account balance to exceed the credit limit.
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