Question: My minimum monthly credit card payment doubled in the last month and now I can’t afford it. Can they do this?
Answer: When a person signs up for and uses a credit card for the first time, he/she is agreeing to terms of a contract with their bank. Terms and agreements are normally sent with your monthly statement. Many of the changes in rates or fees associated with an open-end line of credit are covered under those terms. The Truth in Lending Act requires that certain terms be disclosed upfront. Among these are the finance charge, security interests, other charges, and a statement of billing rights.
For some changes to your account, you will receive an advance notice but will not be able to reject the amendments. This would include an increase in your minimum payment. National banks are required to provide written notice of such changes at least 15 days prior to the effective date.
For further information, contact the Comptroller of the Currency, Customer Assistance Group at 800.613.6743 or refer to your Account Agreement.