Banks Reminded to Keep Records on Credit Card Rate Increases

This story appeared in Bank Digest.

The Office of the Comptroller of the Currency has reminded national banks that they must maintain information on many credit card interest rate increases that have been imposed since Jan. 1, 2009, for use in subsequent required reviews. The Credit CARD Act requires that lenders must review interest rate increases that resulted from factors such as the credit risk of the cardholder and market conditions every six months to determine whether a reduction is appropriate. Although the review requirement does not take effect until Aug. 22, 2010, the need to review increases since January 1 of this year means that information must be retained.

OCC 2009-25 at http://www.occ.treas.gov/ftp/bulletin/2009-25.html