If there is a change in the terms and condition of an existing credit card, i.e planning on increasing the interest rate, fees..etc.. Notice must be given at least 45 days prior to the changes occur.

In accordance to Reg AA, section 227.24(b)(3) which prohibits raising rates during the first year an account is open unless another rate increase exception applies.

Now the questions:

If a notice is sent can the bank increase the rate for those accounts that were open within the first year, say opened for six months.

Does the monthly periodic rate need to be disclose in tabular format aside from the APR (assuming that the interest rate is going to change) thus what about the monthly periodic rate should it also be disclosed.

Is there anything else that I am forgeting, if there is anything that could be helpful please let me know.

Thanks,

psk

In line with the questions previous posted here is a hypotical scenario:

Changes to Interest Rate and Interest Charges
APR for Purchases 12.00%
APR for Cash Advances 12.00%
APR for Balance Transfers 12.00%

Changes to Fees
Annual Fee $15.00 for the primary cardholder
$5.00 for each additional cardholder

Cash Advance Fee ATM: $1.00
Over-the-counter: 1% of the cash advance amount, $5 minimum

Balance Transfer Fee 2% of the balance transfer amount, $10.00 minimum

Return Payment Fee $15.00 per item

Other Changes
Minimum Payment Due The Minimum Payment Due will be calculated as 2.5% of the New Balance, plus any unpaid interest charges and fees, plus any amount in excess of the established credit limit, plus any past due minimum payments. If the New Balance is $25.00 or less, you agree to pay it in full.


Any help would be greatly appreciated.

Quote: In accordance to Reg AA, section 227.24(b)(3)


That section (Subpart C of Regulation AA) was repealed in 2010. You should be referring to the requirements found in Regulation Z - § 1026.55