What can a lender do if a consumer rejects a credit card APR increase?

The best course of action a lender can take when a consumer rejects a credit card APR increase is to require repayment of the balance amortized over five years. This approach aligns with the consumer's rights under regulations governing credit card practices. When a consumer does not accept an increase in the APR, the lender must navigate how to handle the existing balance without unilaterally imposing unfavorable terms.

By allowing the repayment of the balance over an extended period, such as five years, the lender provides a structured way for the consumer to manage their debt, which can help improve customer relations and ensure compliance with the regulatory framework aimed at protecting consumers. It respects the consumer’s decision to reject the increase while still ensuring that the lender can manage the risk associated with the account.

The other options, such as increasing the APR anyway, requiring immediate repayment of the balance, or imposing a fee for processing the rejection, would likely violate consumer protection laws and could lead to regulatory scrutiny, as they disregard the consumer's decision regarding the APR change.