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Title 15, Commerce and TradeRelease 119-110

§1665c Interest Rate Reduction on Open End Consumer Credit Plans

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

Last updated Sep 23, 2026|Official source

Summary

If a card issuer raises a credit card's APR because of things like a borrower's credit risk, market conditions, or other reasons, the issuer must later check whether those things have improved and lower the APR when a review shows risk has gone down. The issuer must use reasonable methods, review raised-rate accounts at least every 6 months for increases since Jan 1, 2009, and explain the reasons in the written notice required under section 1637(i). No specific amount of reduction is required. The Bureau must issue final rules within 9 months after May 22, 2009, and those rules take effect 15 months after May 22, 2009.

Full Legal Text

Title 15, §1665c

Commerce and Trade, Source: USLM XML via OLRC

(a)In general
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)Requirements
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)Rule of construction
This section shall not be construed to require a reduction in any specific amount.
(d)Rulemaking
The Bureau 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

Sep 23, 2026

Release point: 119-110