|“While companies can’t hike your rates on existing balances unless you’re 60 days late with a payment, they can raise rates on future purchases any time and for any (or no) reason. They do have to tell you this, but they’ll probably send it in an envelope that looks like junk mail in the hopes you’ll throw it out.”
Lauren Bowne, as quoted in Beware: Loopholes in the Credit CARD Act you need to know about
Today’s WhatIs.com Word of the Day is Credit CARD Act.
Martha White provides a great overview of the Credit CARD Act’s “gotchas” in her interview with Lauren Bowne.
While the CARD Act has limits on the severity of penalty fees you can be charged, there’s no rule against card companies making up as many new fees as they can conjure and charging whatever they like for them.