@trumpet-205 wrote:
Let's take a closer look at the CARD Act, the actual wording.
(a) In General.--If a creditor increases the annual percentage rate applicable to a credit card account under an open end consumer credit plan, based on factors including the credit risk of the obligor, market conditions, or other factors, the creditor shall consider changes in such factors in subsequently determining whether to reduce the annual percentage rate for such obligor.
(b) Requirements.--With respect to any credit card account under an open end consumer credit plan, the creditor shall--
``(1) maintain reasonable methodologies for assessing the factors described in subsection (a);
``(2) <<NOTE: Deadlines. Review.>> not less frequently than once every 6 months, review accounts as to which the annual percentage rate has been increased since January 1, 2009, to assess whether such factors have changed (including whether any risk has declined);
``(3) reduce the annual percentage rate previously increased when a reduction is indicated by the review; and
``(4) in the event of an increase in the annual percentage rate, provide in the written notice required under section 127(i) a statement of the reasons for the increase.
From here, we know that APR can only be reduced if your APR was increased, this can be from penalty APR, prime rate adjustment, etc. If you started out with high APR, CARD Act does NOT even require APR evaluation every 6 months.
If that is the exact wording thats good because a: It doesn't have any deadline (at least in what you pasted) it doesn't expire.
A) all cards issued after that date you would have gotten the interest rate based on your credit anyways and not suffered . If you get any increased rate with the new cards the law protects you as it is after 2009.
b) if you had an account before 2009 and your rate was increased within the time of the law you are covered.
c) if you didn't have a rate increase people before the law passed you wouldn't need to worry about it as it was based on your credit.
d) if you had an existing account before the law passed, banks sent out noticed to "opt out" of any increases before the law took place. If you accepted the rate you are protected from any additional increases that are prolonged.
Finally just note that although the Card ACT was passed the Federal Reserve, the Consumer Financial Protection Burea, etc actually implement changes. Similar to the fact that the law originally stated those under 21 must provide proof of income, etc. The Feds removed the requirement.
