Give up my rights to save $10? No thank you!

Here's a new twist on how credit-card companies are attempting to get around the consumer-friendly Credit CARD Act, due to go into effect in February. 

Our sister Web site, The Consumerist, this week featured a reader's account of a telephone conversation with Capital One, in which the credit-card company offered to lower the fellow's overlimit fee to $29 per transaction from $39, if he chose not to be covered by one of the Credit CARD Act's consumer protections. (Click here for The Consumerist's update.)

The new law disallows overlimit fees, unless folks opt in for overdraft protection. But that $10 savings for opting in doesn't sound like much of an incentive, in our view.

If you have a story to report about a similar offer, or a unilateral decision, by your credit-card company, tell us about it at Consumers Union's Credit Card Reform.org. We'll be collecting consumers' anecdotes and commenting to the Federal Reserve to encourage more restrictions on credit-card company abuses.

And click here for Consumer Reports tips on taking control of your credit-card debt and avoiding credit-card company atrocities.–Tobie Stanger

Comments

[Robert M]

What Congress really needs to do is to freeze the limits for 24 months to give people time to pay down their credit card debt. Like many people, I am afraid to make a big payment on my cards for fear they will reduce my limit. I've had one card reduce my limit 3 times this year, following down my balance. They've taken away $3500 in credit line. They use your balance/available credit ratio as a reason to reduce your limit, but you can't ever improve that ratio if they keep lowering the limit. They should only be allowed to reduce your credit line if you are late on payments to THEM.