Under the new law, credit-card issuers can't charge over-limit fees unless a consumer agrees in advance to the fee. Somebody was thinking with this rule because it specifically states that banks can't assume consumers agree to the fees -- a borrower has to actually opt-in.

However, if a borrower doesn’t opt in, charges over the limit would be declined.

I suspect Amex ended their over-limit fees because 1) Their software system can’t currently support an opt-in program, 2) The administration cost would outweigh the benefit (sending out notices, updating accounts with consumer selection, modifying account settings as people change their minds, managing complaints for fees charged in error, etc.). 3) They suspect most people would opt out so by eliminating the fees they can still accept the over-limit charges, earning revenue from interest for these charges.

The rule about over-limit fees doesn’t go into effect until Feb 22, 2010, but a couple changes kick in tomorrow (Aug 20, 2009): 1) At least a 45-day notice for significant changes in terms, and 2) At least a 21-day grace period for payments. Two of my issuers have extended their grace period from 20 to 25 days (Chase and Amex).

Ironically, this last rule will increase revenue for banks -- cardholders carrying a balance will pay additional days at the higher balance amount.