I am on the warpath now! I’ve been reading about how the banksters are raising the interest rates on everyone’s credit cards before the new law intended to curb such action goes into effect. You can read about how some corrupt GOP senators are trying to block this bill at: The Raw Story: GOP senators block effort to freeze credit card interest rates. The credit card issuers are rushing to raise interest rates ahead of a new law coming into effect in February that restricts how and when rates can be raised.
My interest rate is now 23.99%. Looking closer I can see that they are being even sneakier than I thought. If I charge more than $1000 a month in purchases I will receive a 10% credit of the total interest charge on my purchase balance. What kind of idiot do they think I am? How does it make good financial sense to spend $1000 a month just to reduce your interest rate by 10%? They are just encouraging people to get deeper into debt at outrageous interest rates. This is flat out usury! You can read about how the math would not add up at: The Atlantic: Citi Offers Lower Interest Rates For More Card Usage.
I hereby declare holy war against CitiBanksters! I intend to blog and twitter about this in protest. Although the banks think we are helpless in the face of their highway robbery, I can think of plenty of ways to bring them to grief:
- As I said, I will blog and twitter to protest this. Just like Iran, baby!
- I will social network with other people who are outraged over this so we can coordinate our actions.
- I will inform many merchants that I’ve decided not to make a purchase because my credit card rate was hiked to 23.99%.
- I will immediately cut way back on my use of this credit card. In fact, I will cut back on all of my discretionary purchases in order to pay off my balance.
- I will try to cancel my Citi Card as soon as possible. I may need to take out a loan at a lower interest rate to do that. I don’t care what this will do to my credit score because I already own a house and a car.
I am going to frame their letter and hang it over my desk to remind myself not to use that credit card. I’ve been focused on reducing my debt but my immediate goal has been to pay off a personal loan. Unfortunately December is a bad month for me because I usually need to pay my State Farm homeowner’s insurance, a heating bill, and buy Christmas presents this month. This year I have some expensive dental expenses as well.
9 Comments
Hello Sir,
Citibank has also done this to me – the second time this calendar year. I have never paid late and have always paid over the minimum. The first time (January ’09), I haggled until they reduced it to something I could live with. Now, they are saying there is nothing to be done except accept the change in terms or close the account. Now, accepting the change means I’m paying my monthly payment to cover the APR which gets me nowhere. Closing the account harms your credit rating. So, either way, you are going to get screwed. Now, this would have been more tolerable if I had not been laid off this past fall. I explained my situation and the Customer Service rep kept saying, “There is nothing I can offer you.” Also, that “spend more and we’ll cut you some slack on your APR” is a scam and should be illegal. It’s my own fault for getting into debt with this card, but I don’t see how this type of predatory rate hike is giving any of us a chance to get back on our feet. Meanwhile, Citigroup took how many of my tax dollars to get back on theirs? Where can I become part of your protest campaign?
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Same thing with me!! 21 years with Citibank..they have no loyalty whatsoever ~~ got mail today and raising to 19.9%!! What?!?! Opened card with Discover today for 0% on transfer balances for 12 months than rate is 11% – 15% — maybe i can pay it off by then. They are taking advantage of the people who pay their bills. I probably won’t close accoutn because don’t want it to reflect bad on my credit but I sure won’t use it again!
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* Citibank and other credit card companies have hiked their interest rates up to 29.99%
* This huge increase comes right before the new credit card rules take effect
* Many customers are upset and complained, leading legislatures to consider reinstating usury caps
I would love to hear from others who have had this done to them and hear how you have handled the credit card giants.
I have been a citibank customer for over five years. Maintaining until just recently a 780 credit score. Around August of 2009 Citi sent me a notice that they would be reducing my available balance, and they did making my amount borrowed within $500.00 of my available limit. (Hence a new lower credit score for me) I have never been late on this card or any other bills. In December of 2009 I became aware that Citibank is raising my interest rate from 14.99% to a whopping 29%. I immediately contacted citi and because my account was not in default and never has been (In fact the representative went as far to say that I had a spotless pay history) that there was nothing they could do for me. I informed the representative even if I wanted to there is no way I could make that payment. She advised me to let my account fall past due (which to me was unimaginable) then call back and they could possibly lower the rate. She told me to call back on the 8th of January 2010. So 01/08/2010 I called back as advised and it was agreed that citi for 12 months make my rate 0%. Also, we had to agree on a set amount that citi would debit from my checking account each month. After 12 months the rate will go back to 29%. (which I have no intention of paying then either) I will have to pay off before the year is up or transfer to something else. Also, with this arrangement it is a negative on my credit report, which I have never had before. I’m completely disgusted with Citi treating their loyal customers this way. Not to mention they conveniently implemented the interest rate hike just before the new February credit card regulations come into effect. I have done a fair amount of research online, consumers are STRONGLY URGED to file complaints with various government and state agencies. Which I have also done. Following are a list of places to file complaints:
Report the company to your state’s attorney general’s office. You can find links to your state’s AG website at naag.org. Your state might allow you to file a complaint online. This is probably the most effective complaint to make as it is the attorney general’s who have filed most of the lawsuits against credit card companies. For example, it was the California AG who sued Providian and forced them to pay the largest judgment against a credit card company ever.
Credit cards issued by finance companies or stores, and matters related to auto dealers, mortgage companies, and credit bureaus
Federal Trade Commission
Consumer Response Center – 240
600 Pennsylvania Avenue, NW
Washington, DC 20580
1 (877)-FTC-HELP (1-877-382-4357) (toll-free)
http://www.ftc.gov
Credit cards issued by federal savings and loan associations and federal savings banks
Office of Thrift Supervision
Consumer Programs
1700 G Street, NW, 6th Floor
Washington, DC 20552
1 (800) 842-6929 (toll-free)
http://www.ots.treas.gov
Credit cards issued by banks with “national” in the name or “N.A.” after the name
Comptroller of the Currency
Customer Assistance Group
1301 McKinney Street, Suite 3450
Houston, TX 77010
1 (800) 613-6743 (toll-free)
http://www.occ.treas.gov
Credit cards issued by state banks that are members of the Federal Reserve System
Federal Reserve Consumer Help
PO Box 1200
Minneapolis, MN 55480
888-851-1920 (Phone)
877-766-8533 (TTY)
877-888-2520 (Fax)
Email: ConsumerHelp@FederalReserve.gov
http://www.FederalReserveConsumerHelp.gov
January 16, 2010 7:31 PM
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thanks for the links – we will definitely file complaints. I actually don’t recall reading theor opt out notice. They told us to pay “what I could” then call back on a specific date and see what “arrangements” were avaialble. This is highway robbery. while we incurred the debt and use, it is criminal that they are allowed to randomly ravage all their customers – soon to be former ones. We have been with Citi for over 2 decades. It will serve them right when enough people refuse to play the game.
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michelle Reply:
January 25th, 2010 at 9:45 pm
What they are doing in the end will ruin what good credit is left out there. If I end up with a bad credit score while I’m still paying everything on time……I for will not pay citi another dime if my credit goes to you know where anyways!
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AT&T Citi Bank just “Hosed” me at 29.99%, too. No willingness to compromise so I’m in the process of paying it off. Hopefully they won’t lower my credit limit or cancel the card when I pay it off.
Why are our credit scores downgraded by the fickle actions of a credit card company rather than our own financial misconduct?
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I think we really need to flood or state and government agency emails and complaint divsions. It’s total crap that these credit card companies are making all these changes just before the new sanctions go into effect. AND TO THINK WE BAILED THEIR BUTTS OUT!
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Citibank needs the money to pay for their corporate jets —
http://buttifulamerica.blogspot.com/2010/02/citibank-needs-new-50-million-dollar.html
They just nailed me, and the nice customer service lady said all she could do was put in a request to lower it from the new 29.99 per cent APR they gave me (I’ve had them for years and it was 8.75 per cent and I cannot afford the hike). In a “few weeks” I may get a letter giving me a new rate!
Write to everyone…write to the President at Whitehouse.gov ..there is a contact form…this is insanity.
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Citibank just mandated I keep $1,500 in my account or they will be charging me $7.50 a month in fees. Hey Citibank the reason I dont keep money in your bank it because interest rates on FDIC insured online banks crush yours. Nice try trying to force me to keep money in your bank. You just lost a Customer you had since 18 years old.
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CitiBank did the same to me. I have auto pay with my Citi account and they still raised my rate to 29.99%. They said there was a letter that was sent out and if you did not respond to the letter that your rate would go up. I NEVER GOT A LETTER nor did I sign another contract with them. They said that there contract changed. I called up and requested a supervisor who said they could not help me and then went to get there supervisor, who was not available. They said that they would have to call me back in 24hrs. It is now 48hrs and not phone call. This is Crap!!!!!!!!
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