Navigating the Regulation Z Maze: Notice requirements for terminating discounted rates on credit cards

Last month, I blogged on the timeframes for running promotions on your credit cards. A question then came up regarding whether credit unions have to provide notice when the promotional rate ends and how to handle situations where a member no longer qualifies for a discounted rate, such as an employee preferential rate or a special rate for autopay. This blog addresses the change in terms notice requirements for promotions and discounts that are agreed to after a credit card account is opened and are not provided for in the original card agreement.

In true regulator fashion, getting the answer to this seemingly simple question is not so easy. Once you have figured out where to start, you’ll wander through obscure parts of the rule and commentary only to find yourself in a completely different section of the rule. As it can be quite easy to get lost in the maze of cross-references and confusing language, it’s helpful to take it one step at a time. So, I’ll guide you slowly through the maze and hopefully you won’t get lost along the way.


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