Roughly 95% of credit unions that process their credit card transactions with The Members Group have stopped allowing members to go over their card's limits, the processor said. The remaining credit unions that still allow cards to be used over their limits have said they will not fee members who do so.
The decision to do so comes in response to proposed rules to be contained in the final portion of the Credit CARD Act, effective Aug. 22, the processor said.
"There's no doubt some cardholders will miss the ability to spend over their credit limits," said Sara Petty, TMG's vice president of strategic initiatives. "However, removing the temptation to overspend really makes sense for credit unions as they lead the country's efforts to return to thrift and financial responsibility."
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