Prohibits Retroactive Application of Rate Hikes for Consumers

The Act would prevent issuers from raising rates
retroactively to prior balances borrowed at a lower rate because of a supposed
problem with another creditor or a drop in the consumer’s credit score (a
practice known as “universal default”). Thanks to universal default, even consumers
who are in good standing with their credit card issuer can be subject to
retroactive interest rate hikes from other credit card issuers.