§1666i–1 Limits on Interest Rate, Fee, and Finance Charge Increases Applicable to Outstanding Balances

Summary

Card companies cannot raise the interest rate (APR), fees, or finance charges on money you already owe, except in a few specific cases. They can raise the APR if they told you ahead of time a fixed low-rate would end after a set period, the new rate is the one they promised, and the higher rate does not apply to purchases made before that period began. They can change a variable APR that moves with a public index. They can raise the rate after a temporary hardship or workout ends, or if you break that agreement, but the new rate for each kind of charge cannot be higher than the rate that applied before the arrangement and the company must have clearly told you the workout terms before it started. If you miss a minimum payment by 60 days, the company may raise the rate but must give a written reason with the required notice and must say the increase will end no later than 6 months if you make the required minimum payments on time; the company must stop the increase within 6 months if you do make those payments on time. The company may not change how you must repay an existing balance, except it may offer one of these repayment ways (or something at least as good): a payment plan that takes at least 5 years starting when the increase takes effect, or a new minimum payment that uses a percentage of the balance that is no more than twice the old percentage. Outstanding balance means the amount you owe as of the end of the 14th day after the company gives the required notice of the increase.