The card issuer may – and in some circumstances must — compare the rate you are being charged with the rate the card issuer would charge you today if you applied for a new card, based on the issuer’s pricing for new accounts. If your rate is higher than what you would be charged as a new customer, the card issuer must reduce your rate to the rate charged for new customers. However, this rate will not necessarily be as low as your original rate.

If your rate increased because of factors specific to you (such as because you made a late payment), then instead of comparing your rate to the interest rate charged new customers, the card issuer may consider whether the factors that led the card issuer to increase your interest rate still apply. If the card issuer elects to proceed down this path and the factors that led to the increase no longer apply,  the card issuer must decrease your rate and must follow reasonable policies in doing so, but the card issuer is not necessarily required to reduce your rate back to the original rate.

If you have questions about the basis for the card issuer’s action, you should contact the card issuer.