HB6412 Summary

• Amends the Illinois Financial Services Development Act to add definitions for "credit card" and "credit card account" to distinguish them from other revolving credit plans.

• Creates new Section 8.5 establishing separate rules for credit card account amendments, prohibiting interest rate increases on existing balances except in limited circumstances (promotional rate expiration, variable rates, workout arrangements, delinquency after 60 days, or Servicemembers Civil Relief Act situations).

• Requires financial institutions to provide borrowers at least 45 days' notice before increasing credit card fees or charges, with the ability to reject amendments through mail or phone, and prohibits fee increases during the first year after account opening.

• Prohibits "universal default" on credit card accounts—financial institutions cannot increase interest rates based on changes to a borrower's credit standing if the change doesn't affect all or substantial portions of a class of accounts and doesn't relate to inactivity, default, or delinquency on that specific card account.

• Raises the minimum age for obtaining a credit card account from 18 to 21 years old, requiring either independent ability to pay or a cosigner/guarantor at least 21 years old, while maintaining exceptions for supplementary cards on accounts of those 21 and older.