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September 25, 2009



Are there any restrictions if a creidt union wanted to lower the APR on their credit cards?

Anthony Demangone

Hi Julie,

Directly, there are no restrictions. The 45-day right to cancel kicks in with rate increases. But indirectly, you may paint yourself into a corner. If you reduce rates you're really stuck with them. If you try to raise them, 2 things will kick in. First, there's the 45-day right to cancel. Second, you'll have to revisit the rate increase within 6 months to see if the reasons for increasing the rate still exist.

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