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New rules would fix ‘fixed’ credit card rates

A proposed change to Regulation Z will end the current practice of allowing card issuers to advertise “fixed” rates that can change whenever the issuers feel like it. Currently, issuers can offer a “fixed” rate credit card — and change the rate 15 days later or “at any time for any reason.” Under the proposal, the term “fixed” will have meaning: If no time period is specified, the rate will remain fixed as long as the account is open and payments are kept current.





45 days’ notice
Fixed rates
APR disclosures

Fee disclosures
Account opening disclosures
Periodic statement disclosures
Changes in credit card terms
Minimum payments
Subprime credit cards

“Clarification of the term ‘fixed’ interest rate is long past due … ” says Corky Neale, Memphis Debt Collaborative/RISE Foundation Read more (Page 1)

Richard Painter, a credit cardholder from Troutville, Va., calls his disappearing “fixed rate” an example of “bait and switch.” He writes: “Our attempts to pay off our credit cards have been made almost impossible by Capital One and other credit companies policies of increasing our ‘fixed rate’ every time our total balance drops … ” Read more

Jodi Anderson Thompson, an assistant staff counsel for the Florida Bar, writes about the disappearing “fixed” rate: “I have always felt that this was fraudulent conduct on the part of the company.” Read more

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In Research and Statistics

New 45 days’ notice rule proposed for credit cards

Changes in terms of credit card contracts would need 45 days' advance notice.

Published: December 26, 2007

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Credit Card Rate Report Updated: September 11th, 2019
Business
15.45%
Airline
17.38%
Cash Back
17.53%
Reward
17.40%
Student
17.58%

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