(At a Congressional hearing in April, Susan) Wones expressed frustration that her card company, Chase, had approved her purchases even after she went over her credit limit, triggering a fee and an interest rate hike. She had assumed charges would be denied as soon as she reached her $2,000 limit. Chase says that most customers appreciate the ability to go over their credit limit but that consumers can request to have such charges denied.
Thaler and Sunstein have proposed that credit card companies ask consumers whether they want to be able to exceed their credit limit (for a penalty) or if they would prefer the charges be denied.
If you are a shopaholic with self-control problems, you might also pay a credit card company a small amount to cancel all charges on specific categories of goods once a pre-set budget limit is reached each month. For instance, Thaler has a weakness for good wine, so he might ask his credit card company to reject all charges from liquor stores and online wine shoppes after X dollars are spent. Sunstein has a weakness for books, so he might ask that all charges to Amazon or Barnes & Noble be rejected after he spent Y dollars on them for the month. Is there a store or product for you wish your credit card company could help you control your spending?