With an open-end credit account (e.g., a credit card or line of credit), the term fixed means that the periodic rate is fixed for a period of time. The bank can change the account terms, including the periodic rate, at any time as long as it notifies you at least 15 days prior to the effective date of a change.

On the other hand, if you have a closed-end loan (e.g., a car loan or mortgage), the term fixed means that the periodic rate remains the same for the life of the loan.

With an open-end account, the 15-day timing requirement does not apply if:

1. the consumer has agreed to the change
2. The change is due to a consumer’s delinquency (late payment) or default (going over the limit).

In both these instances, the bank must provide some notice prior to the effective date of the change, but there is no 15-day rule. Be sure to review your Account Agreement, which is the contract governing your credit card account. It provides information on changes that may occur to an account.