Discover Financial Services (DFS)

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Katie Culp
FOXBusiness American Express (AXP: 31.75, -0.23, -0.72%) and Discover (DFS: 12.46, -0.15, -1.19%) announced Tuesday that credit card holders will no longer pay a fee for spending over their limit as a result of previous legislation signed by President Obama to reduce overbearing consumer fees.

The days of $35 to $40 over-the-limit fees may be over for some credit card companies, but big name banks like Bank of America (BAC: 17.39, 0.39, 2.29%), Chase (JPM: 42.452, -0.428, -1%), Citigroup (C: 4.05, -0.01, -0.25%) have yet to follow suit by not charging over draft fees.

In the wake of the Credit Card Accountability Act passed in May, card holders will only be charged fees if they sign for permission to exceed their set credit limit.

If a consumer exceeds their credit limit they may face other consequences such as a lower credit score or increased interest rates. While analyst say American Express and Discover don’t make much revenue off overcharge fees, they warn the elimination of such penalties may lead to other added fees.

American Express consumers recently received notice of the changes, while Discover plans to notify its cardholders with similar notifications soon.