Most major credit card issuers boosted annual percentage rates in 2009, according to a Federal Reserve Board survey of credit card plans. The Fed surveys the terms of credit card plans offered by financial institutions every six months. Its report includes information from the largest U.S. credit card issuers and any others that volunteer to participate in the survey.
Citibank showed the greatest jump, to 15.99% in July from 10.74% in January last year. Discover Bank’s rate grew to 14.75% from 12.49%, while Bank of America Corp.’s rate grew to 16.79% from 13.99%.
Market observers have suggested issuers increased their annual percentage rates in response to the tough economy, and they predict rates could approach 20% with the introduction of the Credit Card Accountability, Responsibility and Disclosure Act of 2009, much of which went into effect in mid February.
Direct-mail monitoring services Mintel Comperemedia and Synovate both reported increases in card interest rates late in 2009 (
