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The bank increased the rate on my variable rate home equity line of credit (HELOC) without providing any notice. Can it do this?

The term "variable" means that the interest rate on your HELOC is tied to an index or formula that changes periodically.

When you contracted for the HELOC, the bank was required to provide you with a disclosure that explained this variable rate feature and when a rate may change, such rate changes are not considered a change in terms. However, your new rate is still required to be disclosed on your periodic statement that is sent before your next payment is due.

Last Reviewed: April 2021

Please note: The terms "bank" and "banks" used in these answers generally refer to national banks, federal savings associations, and federal branches or agencies of foreign banking organizations that are regulated by the Office of the Comptroller of the Currency (OCC). Find out if the OCC regulates your bank. Information provided on should not be construed as legal advice or a legal opinion of the OCC.

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