Wells Fargo raising credit card rates ahead of law

Wells Fargo plans to hike up credit card interest rates by 3 percent starting November 30, one day before new rules limiting the increases could take effect.

In a statement released Wednesday, the company said the increase was needed due to "rising business costs and current consumer credit challenges." The company said the increase will affect the majority of its customers.

The Credit Card Accountability Responsibility and Disclosure Act is scheduled to take effect in February, but Representatives Barney Frank and Carolyn Maloney have proposed legislation that would move the date up to December 1.

"We delayed our decision in hopes that the business environment would change," the company statement said. "We took this action at this time in order to continue offering our credit card products to the greatest number of customers possible and keep credit flowing."

Wells Fargo did not comment on whether the timing of the rate increase is related to the new rules.

The company also said it will eliminate over-limit fees, effective February 22. The fees are imposed when customers spend above their credit limits.