It’s pretty much universal in the professional career ranks that “overqualified” means that the company doesn’t know what to do with you, can’t afford you, you’ll make the rest of them look unqualified, we’re looking for younger people, etc . Don’t blame it on a recruiter, it comes straight from the companies department hiring authorities doctrine.
DO NOT take it personally. I repeat, don’t let it get to you. An excuse not to hire you is just exactly that. An excuse. It could just as easily have been that they didn’t like your purple tie, or the color of your hair, or that leisure suit, or the wrong degree or something just as stupid. If they call it “overqualified” just chalk it up to just another company who didn’t get it.
If indeed they are looking for a newbie to train, something little more than an intern, then they should say so and indicate you just don’t fit the profile. But to call it “overqualified” is just lazyness.
In these tough times, the smart companies will take advantage of the “wonderfully experienced and talented” people out there on the market. If the subject begins to peek its head out early in the interview, take liberties early to express how grateful you are to be sitting in an interview with a company who is insightful enough to be seeking experienced people. And somewhere slip in that you will be anxious to be led and learn so much more by such a sophisticated company.
Remember, “overqualified” is just a code work for excuse. Take heart in that it has nothing to do with you.