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Before Torruella, Boudin and Dyk, *fn1 Circuit Judges.

This is an appeal from the dismissal of a class action relating to interest rate charges on bank credit cards. The named plaintiff is Jessica Shaner, a Massachusetts resident, who has or had a consumer credit account with defendant Chase Bank USA, N.A. (“Chase”), a national banking association with its principal place of business in Delaware. Shaner, like other holders of bank credit cards, pays monthly an interest charge on the balance in her account that remains unpaid after an initial period. The charge is calculated using a rate known as an Annual Percentage Rate (“APR”).

Chase’s credit card agreement with its customers expressly allows it to increase the APR for cardholders who fail to perform one of the obligations created by their card agreement (for example, fail to make a required payment on time). The current dispute revolves around Chase’s attendant policy of applying, without prior notice, such a rate increase as of the start of the month in which the default occurs. Shaner’s card agreement stated that in the event of a late payment Chase “may increase the APRs . . . on all balances up to a maximum of the default rate stated in the Rates and Fees Table”*fn2 and that the new rate “will take effect as of the first day of the billing cycle in which the default occurs.”

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