Alert August 11, 2009

OCC Issues Guidance Regarding Credit Card Accountability Responsibility and Disclosure Act Look-Back Provision

The OCC issued guidance regarding the “look-back” provision of the Credit Card Accountability Responsibility and Disclosure Act of 2009, which provides that increases in annual percentage rates after January 1, 2009 must be reviewed at least once every six months to assess whether factors contributing to the APR increase have changed. According to the OCC, APRs might require reduction if such factors are no longer present, although the OCC notes that the Act does not “require a reduction in any specific amount.” Effective August 22, 2010, national banks must conduct such reviews on any accounts on which the APRs were increased on or after January 1, 2009. Both the FRB and OTS have issued similar guidance to the banks they supervise. Click here for the OCC’s guidance.