WASHINGTON (CN) – Credit card users will have 45 days notice of rate increases and changes in terms, and more time between receiving a bill its payment being due, starting Aug. 20, according to a Federal Reserve rule implementing the Credit Card Act.
Credit card companies also must review each consumer account whose rates have been increased, to consider whether changes in the conditions leading to the increase call for a reduction in rates. Each of these accounts must be reviewed automatically at least once every six months, and credit risk calculations are not to take these reviews into account.
Additionally, the rule requires that the due date and the grace period on interest no longer be determined by a set number of days after the end of the previous month’s billing cycle. Instead, the 21 day clock will run from the day the statement is mailed or received by the consumer.
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