Frankly, I have no clue what the legal limit is on how long a bank has to warn you before upping your credit card rate. I don't know because when we change our credit card rates, we grandfather in all of the existing ones, so the change only applies to new cards (and we stop giving increases on the no-longer-offered cards).
But I do guarantee you that when YOU request an increase to your limit and we say "We have approved your credit card for an increase, however our rates are based directly off of your current credit score. Since your credit score has gone down, if you accept the increase, the rate on the card will change to the new [higher] rate that goes with your current credit score.", if you then accept the increase, then then the fully-disclosed rate increase is NOT illegal.
You can choose to NOT accept the increase, at which point your rate will not change. So NO, this is not an illegal change of your rate. It is giving you a choice.
And despite the multiple notes on the increase that stated the rate increase was fully explained to you, I am perfectly willing and able to reverse the increase and take you back to your former limit. Oh? You want both the higher limit AND the increase. I want customers who don't yell at me over things they already agreed to. Looks like we'll both have to learn to live with disappointment.
As for the whole "well, why did you approve the increase if my credit is worse now" complaint:
1) would your rather we denied you?
2) approvals are based partly on history with us. When you got the card to begin with, you had no history with us. Now, you have some history, so we're willing to risk a higher limit.
3) screw it, I'm done trying to explain anything to you
But I do guarantee you that when YOU request an increase to your limit and we say "We have approved your credit card for an increase, however our rates are based directly off of your current credit score. Since your credit score has gone down, if you accept the increase, the rate on the card will change to the new [higher] rate that goes with your current credit score.", if you then accept the increase, then then the fully-disclosed rate increase is NOT illegal.
You can choose to NOT accept the increase, at which point your rate will not change. So NO, this is not an illegal change of your rate. It is giving you a choice.
And despite the multiple notes on the increase that stated the rate increase was fully explained to you, I am perfectly willing and able to reverse the increase and take you back to your former limit. Oh? You want both the higher limit AND the increase. I want customers who don't yell at me over things they already agreed to. Looks like we'll both have to learn to live with disappointment.
As for the whole "well, why did you approve the increase if my credit is worse now" complaint:
1) would your rather we denied you?
2) approvals are based partly on history with us. When you got the card to begin with, you had no history with us. Now, you have some history, so we're willing to risk a higher limit.
3) screw it, I'm done trying to explain anything to you
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