Answers About Changes to Credit Card Terms and Other Forms of Credit

Select from the following questions about changing the terms of credit cards, home equity lines of credit, and other personal credit.


Can the bank change the terms—such as increasing the rate of interest on my personal line of credit?

A national bank can generally change the terms of your personal line of credit in accordance with its account agreement with you. However, for many important changes, such as changes in the Annual Percentage Rate, the bank must send you a notice of the change at least 15 days in advance.

The 15-day advance notice requirement does not apply if:

However, for these changes, the bank must provide notice before the effective date of the change.

Please review your Account Agreement, which is the contract governing your credit card account. It provides information on changes that may occur to your account.

Revised 08/19/2009

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Can the bank change the account terms on my credit card account?

Yes, a national bank can generally change the terms of your credit card account.

If your credit card is not secured by your home (and most are not), the bank generally must send you written notice of any significant changes to the account terms at least 45 days in advance of that change.

Unless an exception applies, the notice must advise you of your right to reject the change. In general, you can reject a change that applies to your existing balances and any transactions that occur 14 days or less after you receive the notice if you do so before the effective date of the change. You will not be able to reject a change for transactions that occur more than 14 days after the bank sends you the advance notice.

Changes in some charges, such as a charge for expedited delivery of a credit card, are not considered "significant" under the Truth in Lending Act regulations. For increases in these charges, the bank may either provide a 45-day advance notice or inform you of the amount of the charge before you become obligated to pay the charge.

Be sure to review your Account Agreement, which is the contract governing your credit card account. It provides information on changes that may occur to your account.

You should also know that starting in February 2010, additional limits on changes in credit card rates and fees will become effective. Please check this Web site to stay informed of important information about credit card accounts.

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Under what circumstances can the bank change the terms on my personal line of credit?

The purpose of the Truth in Lending Act is to allow consumers to make informed decisions about consumer credit costs and terms. The Truth in Lending Act regulations require that certain terms be disclosed up front. These include

The Truth in Lending Act regulations do not address the kinds of changes a bank can make to the terms of an open-end personal line of credit. Your account agreement with the bank should contain information on the changes that can occur to your account.

However, the Truth in Lending Act regulations require national banks to notify customers of any changes to account terms that were required to be disclosed up front. The notice for this type of account is required to be mailed or delivered at least 15 days before the effective date of the change.

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How must the bank notify me when it changes the terms on my personal line of credit?

The bank is required to provide a written notice to each affected consumer when:

The notice shall be mailed or delivered at least 15 days prior to the effective date of the change. However, the 15-day advance notice requirement does not apply if:

In both these instances, the bank must provide a notice prior to the effective date of the change.

Be sure to review your Account Agreement, which is the contract governing your account. It provides information on changes that may occur to your account.

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How must the bank notify me when it changes a significant term on my credit card account?

The bank is required to provide a written notice when it makes changes to certain account terms that are considered to be "significant" under the Truth in Lending Act regulations. An increase in the Annual Percentage Rate and increases in many types of fees are significant changes that require an advance notice. The notice must be mailed or delivered to you at least 45 days prior to the effective date of the change.

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Are there any changes to my credit card account that I cannot reject?

Yes. Banks are not required to provide advance notice of some types of changes, such as a decrease in your credit limit or the termination of your account. You may not receive an advance notice of these changes and you will not be able to reject these changes under the Truth in Lending Act regulations.

For some types of changes, you will receive an advance notice but you will not be able to reject the changes. Examples are an increase in your minimum payment or an increase in your Annual Percentage Rate because you were 60 days or more late in making a required minimum payment on your account.

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Does the billing cycle have to be 30 days?

No, but this is a standard cycle period. If you desire a different cycle, contact your credit card company. 

For more information, review the Account Agreement you received when you opened the account.

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