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Title 15 — Commerce and TradeRelease 119-73

§1665c Interest rate reduction on open end consumer credit plans

Title 15 › Chapter CHAPTER 41— - CONSUMER CREDIT PROTECTION › Subchapter SUBCHAPTER I— - CONSUMER CREDIT COST DISCLOSURE › Part Part C— - Credit Advertising and Limits on Credit Card Fees › § 1665c

Last updated Apr 6, 2026|Official source

Summary

Credit card companies must watch for improvements in the reasons they raised a card’s interest rate (APR), like a borrower’s credit risk or market conditions, and use those changes when deciding whether to lower the APR later. They must have reasonable methods to check those factors, review at least every 6 months any accounts whose APR was raised since January 1, 2009, and lower the APR when the review shows a reduction is justified. If they raise an APR, they must explain why in the written notice required under section 1637(i). The rule does not require any specific amount of cut. The Bureau had to issue final rules within 9 months after May 22, 2009, and these requirements became effective 15 months after May 22, 2009.

Full Legal Text

Title 15, §1665c

Commerce and Trade — Source: USLM XML via OLRC

(a)If a creditor increases the annual percentage rate applicable to a credit card account under an open end consumer credit plan, based on factors including the credit risk of the obligor, market conditions, or other factors, the creditor shall consider changes in such factors in subsequently determining whether to reduce the annual percentage rate for such obligor.
(b)With respect to any credit card account under an open end consumer credit plan, the creditor shall—
(1)maintain reasonable methodologies for assessing the factors described in subsection (a);
(2)not less frequently than once every 6 months, review accounts as to which the annual percentage rate has been increased since January 1, 2009, to assess whether such factors have changed (including whether any risk has declined);
(3)reduce the annual percentage rate previously increased when a reduction is indicated by the review; and
(4)in the event of an increase in the annual percentage rate, provide in the written notice required under section 1637(i) of this title a statement of the reasons for the increase.
(c)This section shall not be construed to require a reduction in any specific amount.
(d)The Bureau 11 So in original. Probably should be “Board”. shall issue final rules not later than 9 months after May 22, 2009, to implement the requirements of and evaluate compliance with this section, and subsections (a), (b), and (c) shall become effective 15 months after May 22, 2009.

Legislative History

Notes & Related Subsidiaries

Editorial Notes

Amendments

2010—Subsec. (d). Pub. L. 111–203 substituted “Bureau” for “Board”.

Statutory Notes and Related Subsidiaries

Effective Date

of 2010 AmendmentAmendment by Pub. L. 111–203 effective on the designated transfer date, see section 1100H of Pub. L. 111–203, set out as a note under section 552a of Title 5, Government Organization and Employees.

Effective Date

Section effective 9 months after May 22, 2009, except as otherwise specifically provided, see section 3 of Pub. L. 111–24, set out as an

Effective Date

of 2009 Amendment note under section 1602 of this title.

Reference

Citations & Metadata

Citation

15 U.S.C. § 1665c

Title 15 — Commerce and Trade

Last Updated

Apr 6, 2026

Release point: 119-73