Prevents Unfair Rate Increases

Under this new law, card issuers can no longer increase interest rates to the default rate if a payment is late or missed. The rates cannot be raised unless the cardholder is at least 60 days late with their payment.

The issuer must restore the lower interest rate after the cardholder has made six consecutive payments on time.

Credit card issuers cannot increase interest rates during the first year after the account is opened.

Promotional interest rates must last at least six months.