Legal Question in Consumer Law in Texas

Credit Card Interest Rates

We have an account with MBNA. The interest started out at 16% and has been increased twice in the last year and is now 24%. Is it legal for credit card companies to just raise our interest rate. We pay our bills on time and pay even more than the required monthly payment. Please advise if we have any rights. Thank you.


Asked on 12/29/03, 12:40 pm

2 Answers from Attorneys
Elizabeth Schaefer SCHAEFER LAW FIRM

Re: Credit Card Interest Rates

Your interest rate is largely governed by your cardholder agreement. The agreement likely describes what the initial interest rate is, what subsequent rates are based on, and when and how it can be changed. You may wish to review the agreement to confirm whether MBNA has complied with those terms.

You can always call MBNA and request that your rate be lowered on the basis of your good credit history. Being able to cite to credit card offers with low rates may add to your persuasiveness. Good luck.

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Answered on 12/29/03, 12:46 pm
Peter Bradie Bradie, Bradie & Bradie

Re: Credit Card Interest Rates

It's probably legal, although you'd have to check your cardholder agreement and all subsequent information mailed to you. Your rights, such as they are, are all set out in the cardholder agreement.

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Answered on 12/29/03, 1:02 pm


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