What happens if a consumer rejects an increase in their credit card APR?

The correct answer reflects that if a consumer rejects an increase in their credit card APR, the lender is required to amortize the account balance over time. This means that the lender must gradually reduce the balance that the consumer owes, thus allowing the consumer to pay down their debt fairly without the burden of an increased interest rate. This practice is in line with consumer protection regulations, which aim to give consumers a fair chance to manage their credit without being hit with sudden and potentially crippling cost increases.

In this scenario, the other options do not accurately represent the lender's obligations in response to a rejected APR increase. For instance, opting for a lower interest rate is not a right the consumer has in this case, as the lender is not compelled to offer a different rate in reaction to a rejection. Ending the account immediately is also not a course of action typically taken due to a consumer's rejection of a rate increase; lenders generally adhere to regulations that protect consumers from drastic measures. Lastly, while the lender may choose to pause further offers, this action is not a required response to the rejection and therefore does not align with what regulations typically stipulate regarding APR increases and consumer choices.