How must the credit union notify me when it changes a significant term on my credit card account?

The credit union must provide advance notice in writing when it makes changes to account terms that are "significant" or when it increases the required minimum payment. An increase in the Annual Percentage Rate (APR) and increases in many types of fees are significant changes that require an advance notice. The notice must be mailed or delivered to you at least 45 days before the change becomes effective.

However, there are some cases when the advance notice requirement does not apply. If you agreed to the change, the credit union does not have to provide advance notice, but it has to give you notice before the change becomes effective.

Also, there are some cases when no notice is required. For example, if you have a variable interest rate tied to an index, and the index goes up, the credit union does not have to provide you a notice of an increased interest rate. The credit union also does not have to provide you notice if your interest rate is increasing because a promotional rate no longer applies, and the credit union already gave you information about the terms of the promotion. Additionally, the credit union does not have to provide you notice if it closes your account, suspends future credit privileges, or reduces your credit line. The credit union does have to provide you a 45-day notice before it imposes a fee or penalty because you exceeded a new, lower credit limit.

Be sure to review your credit card account agreement, which is the contract governing your account. It provides information on changes that may occur to your account.