PORTLAND, Ore. — In a legal victory for consumers, a federal appeals court has ruled that Chase Bank must clearly disclose that it can raise the annual percentage rates for cardholders based on credit risk.

The 9th U.S. Circuit Court of Appeals ruled in favor of an Oregon couple who claimed that Chase violated the Truth in Lending Act, reversing a lower court ruling that had dismissed their complaint.

Cheryl and Walter Barrer filed a class-action lawsuit against the bank after it nearly tripled the annual percentage rate — or APR — on their credit card from about 9 percent to more than 24 percent in April 2005.

The couple claimed that Chase violated the act by failing to disclose the criteria it used to raise the rate, including the risk factors involved.

The court noted that Chase cited general reasons that included outstanding loans it deemed "too high" and too many recently opened credit accounts.

The judges, however, sided with Chase on the general principle "that it must be able to adjust the price of credit according to how risky it is to lend to a given cardholder."