Truth in Lending: 6.8.5.2 Timing of the Notice
The creditor is required to give the notice of penalty rate imposition at least forty-five days prior to the effective date of the increase.1920 However, the notice must be given after the occurrence of the event that triggered the penalty rate, i.e., the default, delinquency, or other violation of the account agreement.1921 Thus, creditors are not permitted to send general, boilerplate notices to all consumers reminding them of the conditions that may give rise to a penalty rate.