Reevaluation of rate increases.

CFR · 2024-01-01 · US · Title 12

(a) (i) Evaluate the factors described in paragraph (d) of this section; and (ii) Based on its review of such factors, reduce the annual percentage rate applicable to the consumer's account, as appropriate. (2) (ii) (A) Any outstanding balances to which the increased rate described in paragraph (a)(1) of this section has been applied; and (B) New transactions that occur after the effective date of the rate reduction that would otherwise have been subject to the increased rate. (b) (c) (d) (i) The factors on which the increase in an annual percentage rate was originally based; or (ii) The factors that the card issuer currently considers when determining the annual percentage rates applicable to similar new credit card accounts under an open-end (not home-secured) consumer credit plan. (2) (e) (f) (1) If the issuer reduces the annual percentage rate applicable to a credit card account under an open-end (not home-secured) consumer credit plan to the rate applicable immediately prior to the increase, or, if the rate applicable immediately prior to the increase was a variable rate, to a variable rate determined by the same formula (index and margin) that was used to calculate the rate applicable immediately prior to the increase; or (2) If the issuer reduces the annual percentage rate to a rate that is lower than the rate described in paragraph (f)(1) of this section. (3) Effective April 1, 2022, in the case where the rate applicable immediately prior to the increase was a variabl

official document · source cfr-2024 · id 12:§ 1026.59