The Office of the Comptroller of the Currency (OCC) issued a bulletin to banks Wednesday requiring them to disclose to customers their right to reject certain upcoming credit card changes.
The Federal Reserve Board has issued an interim final rule requiring banks to notify customers 45 days in advance of any credit card rate change or significant change in their account terms. The OCC reminded lenders to notify their customers that they have the right to reject such changes for existing balances.
The new rates or terms can be applied, however, to any transaction that occurs more than 14 days after notice is given, even if the customer rejects them. And the new rules do not require lenders to notify customers that the new terms could be applied during the 45 days.
