What kind of notice is required for interest rate increases according to the Credit Card Accountability Act?

The correct answer is 45 days because the Credit Card Accountability Responsibility and Disclosure (CARD) Act mandates that credit card issuers must provide at least 45 days’ notice before implementing any interest rate increases on existing card balances. This requirement ensures that consumers are given adequate time to respond to the change, whether by paying down their balance, switching to a different card, or evaluating their options.

The CARD Act was designed to promote transparency and accountability in the credit card industry by protecting consumers from unfair practices. By requiring a 45-day notice period, the law aims to give credit card holders the ability to manage their finances and make informed decisions regarding their credit accounts.