§1666i–1 Limits on interest rate, fee, and finance charge increases applicable to outstanding balances

Summary

Card issuers must not raise the interest rate, fees, or finance charges on a balance you already owe, except in a few specific situations. They can raise the rate after a fixed period only if they clearly told you beforehand how long the period is and what the new rate would be, the new rate does not exceed what they told you, and the higher rate does not apply to transactions made before that period. They can also change a rate that moves with a public index the issuer does not control. An issuer may raise rates when a hardship or workout plan ends or if you don’t follow that plan, but only if the new rate for each type of transaction is no higher than it was before the plan and you got clear written terms in advance. An issuer may raise rates if a required minimum payment is more than 60 days late, but it must give a written reason and must stop the increase within 6 months if you make on-time minimum payments during that time. They cannot change how you must repay the balance except to offer either a repayment schedule of at least 5 years starting when the increase takes effect, or a minimum payment that is no more than twice the previous percentage (or something at least as good). "Outstanding balance" means the amount you owe at the end of the 14th day after the issuer gives the required notice of an increase.