You're warm. A new set of rules was adopted late 2008. Fortunately for consumers (haha), the impending doom was deemed to be on the banking side, and the rules are scheduled to take affect July 1, *2010*. http://www.federalreserve.gov/newsevents/press/bcreg/20081218a.htm Once unthinkable, now unstoppable obama-lama
I work at a credit card company. They are reducing credit limits, shutting accounts, increasing interest rates and pushing up charges. It has been like this for the last 6 months possibly longer. I also used to be a bankruptcy clerk this is at record levels. One thing I noticed about the bankruptcies was it wasn't just people who took the piss and were not responsible it was every one. At least that is what it was when I left about 18 months ago. From what I gather they will close down accounts with little activity and will start making you pay an annual fee for using your card. Also they are putting interest rates up and putting handling fees for balance transfers up.
Your rate doesn't change unless your late! I had my limit increased and my rate lowered just 3 months ago. Read the paperwork!
Unfortunately that it is not true at least not where I work. They can put the rate up any time they want for any reason. They can claim it is linked to the base rate (although it is not, it is just something they say because people believe it). Also there is two rates the rate on purchases and the rate on cash the rate on cash is higher and is charged daily.
I am aware of what you said can happen. I am referring to the original post for I got the same notice. It was just a higher rate notice on default. If you pay your bill on time you keep your current rate unless otherwise stated. Just in reference to the COF notice.