Creditnet Weekly Tip
Right to Opt Out Excludes Minimum Payment Increases
Consumers have the right to opt out of significant changes to their credit card accounts, such as increases in interest rates and other unwanted fees. What's this mean?
Opting out basically means you choose to cancel your credit card, make no further purchases, and pay off whatever balance remains at the old interest rate. However, there are exceptions to the opt out rule.
For example, consumers cannot opt out of increases in minimum payments. So, while it may seem quite significant to you when the minimum monthly payment on your credit card triples without prior notice, you're actually not allowed to opt out and cancel based on this change alone.
Just another reason why you should always use credit cards responsibly, live within your means, and pay your balance in full each and every month.
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