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The bank raised my interest rate because I made a late payment on a credit card account with another bank. Can the bank do this?

The bank cannot increase your rate for making a late payment to another bank during the first year after the account was opened.

However, during the first year after the account was opened, the bank can

  • impose a penalty rate for issues (such as late payments) specific to that particular account, or
  • increase your rate if it is due to the expiration of a promotional rate.

After the first year, it can increase your rate if it gives you a written notice 45 days in advance of the increase. The increase will only apply to transactions that occur more than 14 days after the bank sent the notice.

Review your account agreement for policies specific to your bank and your account.

Last Reviewed: April 2021

Please note: The terms "bank" and "banks" used in these answers generally refer to national banks, federal savings associations, and federal branches or agencies of foreign banking organizations that are regulated by the Office of the Comptroller of the Currency (OCC). Find out if the OCC regulates your bank. Information provided on should not be construed as legal advice or a legal opinion of the OCC.

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