Informing the public about the Federal Reserve
I just got a letter from my credit card company saying that my interest rate is going up. Can they do this?
A credit card company is required to give you written notice at least 45 days in advance that it is going to change your credit card interest rate. So, yes, they can increase your rate, but you have certain rights if they do. Your credit card company must give you the option to cancel your card before the increase takes effect. In addition, the company generally cannot apply the increased rate or fees to your existing balance.
Learn more about your rights as a credit card user by visiting the Federal Reserve's Consumer's Guide to Credit Cards. If you think your credit card company has violated these rules, you can file a complaint.
If the company has not violated any rules, try talking to them to negotiate a rate or credit limit change.