The card issuer increased my interest rate on my existing balance. Can they do that? What can I do to get the rate back down?

Answer:

A card issuer can increase the interest rate on existing balances only if you are at least 60 days late in paying your required minimum amount unless an exception applies (for example, the exception for variable rate accounts). 

If you pay your minimum amount on time for the first six consecutive months after the rate increase, the issuer generally must reinstate the prior rate.

Was this page helpful to you?

Note: Do not include sensitive information like your name, contact information, account number, or social security number in this field.

The content on this page provides general consumer information. It is not legal advice or regulatory guidance. The CFPB updates this information periodically. This information may include links or references to third-party resources or content. We do not endorse the third-party or guarantee the accuracy of this third-party information. There may be other resources that also serve your needs.

Read full answer Hide full answer