WASHINGTON -- Ann has $10,000 in credit card debt.

She was paying it off regularly -- and always on time -- at an interest rate of 7.15 percent.

"Then all of a sudden, when I received my September statement the APR had jumped to 14.99 percent," Ann wrote to me.

This must be a mistake, Ann thought. So like a conscientious consumer, she called the company that issued her credit card.

There was no mistake.

Ann joined millions of other credit card users across the country who have been notified that their interest rates are rising. They, like Ann, are being told to deal with it or get kicked to the credit card curb.

"I called the credit card company," Ann said. "The gentleman said they had chosen several of their 'products' to raise the interest rate."

Ann has two choices. She can accept the higher interest rate, but she would only be able to make the minimum payment.

"I can't afford to pay double interest on a $10,000 balance," she said.

Or she can reject the rate hike.

But if Ann says "no deal," the credit card company has told her it will close her account.

"If I reject the terms, I would be able to pay the old rate on the existing balance," she said.

Under the new Credit Card Accountability, Responsibility and Disclosure (CARD) Act of 2009 and Federal Reserve rules, a cardholder who is notified of a change in terms on or after Aug. 20 has the right to reject that change for the existing balance. If the consumer does so, the credit card issuer must either allow the cardholder to repay the balance on the existing terms, make minimum monthly payments that include no more than twice the percentage of the balance included before the change in terms, or pay off the balance over at least five years.

Ann's worried about her ability to get another credit card at a decent interest rate. She's also concerned that canceling the card will lower her credit scores.

In advance of tougher credit card regulations taking effect next year, many consumers have been receiving notices of lower available balances, interest rate increases or a switch to variable rates.

What the credit card companies are doing is wearing down a lot of good customers who, if left alone with decent interest rates, would have a better chance of paying off their debts.

The Federal Reserve Board's rules implementing the CARD Act require that Ann be given the right to reject (or opt out of) the 14.99 percent interest rate hike. However, as a general matter, the issuer is permitted to apply the 14.99 percent interest rate to any new transactions that occur more than 14 days after notice is given. Continued...