No Purchases, Pymts made, $500 Limit, $2400 Bal

My wife has a MC with a $500 credit limit. Before we moved in together 5 years ago, she maxed the credit card, could not afford the payments, and agreed to make $20 payments a month. I believe the balance was in the neighborhood of $800 at the time I moved in.

When the balance reach $1200, I called to close the account; MC reported it was already closed. Yet they continue charging an over the limit fee of $29 that is also charged the 20.99% APR (.0573%DPR,1.75MPR).

5 YRS later, BAL= $2637
60 mo x $20PMNTS= $1200
60 mo x $29 FEE = $1740
5 YRS Interest = $1200(+ ?)

This is outrageous and assume legal. Am I correct? My wife would like to transfer the balance to another card to avoid overlimit fee. MC will not negotiate a settlement below $2100.

Is there anything I can do?

I am a law school graduate. What I offer is mere information, not to be construed as forming an attorney client relationship.

Not really. This is perfectly legal -- one of the problems with credit card use. Use it, don't abuse it.

Try contacting your local consumer credit counseling service, Perhaps they can settle for a lower amount (although this will be a negative on your credit report) or they can try to speak with master card for a better solution where both parties are happy.