How to Opt Out Of an Interest Rate Increase On Credit Card

Letting your creditors know when you reject the higher interest rate on a credit card.

As per the new laws that have been brought into effect since February 22, 2010, a creditor is supposed to provide a 45 days advance notice to the consumer whenever he is increasing the interest rate on a credit card. He is also supposed to provide the option of opting out of the higher interest rate within this 45 day window period. If you opt out the credit card issuer will allow you to repay your current balance at the old interest rate but will probably cancel your account once you have done so.

If you decide to opt out of the higher interest rate you must let the creditor know immediately. Informing the creditor by phone is not enough and you must send in an opt-out letter in writing. We have mentioned the template of a sample interest rate opt out letter which you can use to send out the notification to the creditor. There is no fixed form of any kind so you can type of your own letter using this template.

As is advised in any kind of publication with the creditors you should send your mail with certified mail with return receipt requested so you have the proof of the letter’s mailing and receipt by the lender. You can get a certified mailing label from the Post Office before mailing the letter and include the 20 digit tracking number on your opt out letter. This is additional proof that the opt-out letter was indeed mailed and received by the creditor. Always keep a copy of recommendations with your creditors were yourself.

Very often notification on the increase in the interest rate may come as an insert with your billing statement. Many people have the habit of throwing away inserts and not paying much attention to their credit card billing statement because the levy the check the Bill online or over the telephone. Pay attention to your Bill and the inserts because just might come along with a notice of increase in the interest rate. It is also important know that your creditors are not always required to alert you for the increase in the interest rate. If increase is due to a default or delinquency on your part is the creditor does not have to provide you with a notice or give your opportunity to opt out.

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