Does a credit card company need to notify me of change in lending terms, like interest rates?

Probably the original said that the terms were subject to change. What they should do is not the same as what they must do.

The credit card company can use a statement insert for a change in terms or print it on the statement. There is no requirement that they incur additional postage expense by making a separate mailing. It wouldn't make any difference anyway because people who don't read statement inserts don't read letters.

A change in interest rate is not a change in terms if you have a variable rate card. The terms state something like "6% above the prime rate published in the Wall Street Journal". It's only a change in terms if they want to change the differential or change the base rate. They don't need to send you a letter every time the prime changes because you could look online or in the paper at the library if you are concerned. They just print the rate for that month on the statement.

It's also not a change in terms if the terms state that your rate will go to 29% if you miss a payment and then you miss a payment. It was already in your terms.

Notification of change of terms by way of a separate LETTER is not required. The notification through the statement of account - may be fine print / super fine print, is an effective communication to you and you are bound by the said notified changes.

They do have to notify you, so that if you do have a balance, that you have the opportunity to pay it off before the the change takes effect.

I think most credit card holders are going through this same thing. I took out a wamu card because I could get my credit score for free anytime I wanted to check it. Now Chase bank has purchased Wamu, and they are no longer offering that option. It sucks because good credit customers are now losing thier options and having interests raised, and we did nothing to deserve it.

Sorry, it's all in the fine print or a brochure they stick in with your statement. It's up to you to keep up with their changes, not the other way around.

If they suddenly raise your interest rate, call and complain and threaten to transfer your balance to a different company. Then ask what they can do about lowering the interest rate to what it was before. If they don't or can't, then switch to a different card holder and transfer your balance to the new card which should have a lower rate.

They do notify you in a letter for all changes in the terms. You might have thrown it out, thinking it was junk mail.

Technically, any change to your credit card agreement should be disclosed. If you are not sure as to what your rights are under the law, please consult with a contract attorney.

You are correct in your assumption. I just got my letter from capital one and that card will be canceled.