After I made a late payment on my credit card, the bank notified me that it intends to raise my interest rate. Can the bank do that?

It depends.  If your payment is more than 60 days late, the bank can raise your rate as long as it gives you a notice in writing 45 days in advance of the increase.  The increase can be applied to your existing balances and new transactions.

If your payment was less than 60 days late, whether the bank can raise your rate depends on when you opened your account.

If you opened your account on or after February 22, 2010, the bank cannot increase your rate for making a late payment during the first year after the account was opened.  After the first year, it can increase your rate if it gives you a written notice 45 days in advance of the increase.  The increase will only apply to transactions that occurred more than 14 days after the notice was provided.

If you opened your account before February 22, 2010, even if the account has been open less than a year, the bank can increase your rate for making a late payment, but it must give you a written notice 45 days in advance of the increase.  The increase will only apply to transactions that occurred more than 14 days after the notice was provided.

March 2010