Citibank increases rate on credit cards to 29.99% or cancels cards
Posted by CD | Posted in Funny and crazy stuff | Posted on 10-21-2009 | 7 Comments »
Citibank has begun closing customers’ accounts without telling them and get this raising their interest to 29.99%. Well I have two cards with Citibank aka Shitibank and got a noticed in the mail 2 days ago that one of my cards will be jumping to 29.99%. Well I used to use this particular card all the time…never keeping a balance for longer than a month or two at the most. Last year, I got a letter saying my 8% interest rate was jumping to 18.99%. I called them and asked them what is going on! They replied back with a response with “it’s because of the financial crisis..blah blah blah…” Well the exact time they raised my interest rate to18.99% last year they are doing it again this year. Effective November it will jump to 29.99%, why?? Financial crisis. Well this card will never be used again until the interest rate is lowered.
There are thousands of people who either got their cards canceled without proper notification or got their interest rate increased to 29.99%. The AP reported that “Citi closed the accounts on Wednesday, but sent out letters Monday informing customers of the change. So Citibank waits until the last minute to tell customers, most of whom probably didn’t receive the news before their cards were shut down.”
Are you in the same boat? Did this happen to you too? Comment here
WHY CITIBANK AND OTHER BANKS HAVE INCREASED INTEREST RATES IS DUE TO NEW GOVERNMENT IMPOSED LAWS THAT TAKE EFFECT IN 2010. ANY INCREASE IN A PERSON'S APR WILL ONLY AFFECT FUTURE PURCHASES AND NOT THE BALANCE AS OF A SPECIFIED GOVERNMENT DATE. ALSO, OUTRAGEOUS OVERDRAFT FEES THAT ARE INCOURAGED BY BANK SOFTWARE WILL ALSO BE CHANGED. NO LONGER A $35.00 OVERDRAFT FEE FOR EACH SEPARATE DEBIT CARD TRANSACTION CAUSED BY BANKS LATE POSTINGS. THEY CAN ONLY CHARGE JUST 'ONE' $35.00 OVERDRAFT FEE WHEN THESE DEBIT CARD TRANSACTIONS ARE MADE WITHIN A VERY SHORT PERIOD OF TIME. BOA 'STOLE' $245.00 RIGHT OUT OF MY CHECKING ACCOUNT UNKNOWN TO ME FOR JUST WHAT I MENTIONED. THEY SENT ME ONE OF THOSE SMALL WHITE CARDS, (WITH NO POSTAGE STAMP DATE) TWO WEEKS LATER INFORMING ME THAT THEY HAD 'RIPPED ME OFF'. IT CAUSED A RIPPLE EFFECT WITH ALL MY BILLS. CALL YOUR SENATOR, THE FTC, and INSIST THAT THE CHANGES TO TAKE PLACE IN 2010 SHOULD NOW BE MADE NO LATER THAN DEC 1, 2009. THE MORE TIME THE BANKS HAVE BEFORE THESE CHANGES THE MORE TIME THEY HAVE TO LINE THEIR POCKETS…MAKE A NOISE!!
Cant we do anything about this? I am a student recently graduated from college and clearing my college debt every month(I paid my fee and other college expenses with Citi Credit Card). Now, I am slowing clearing out the debt and am standing at a very high credit score. I was worried for a few minutes when I saw the letter indicating the APR increase ( i thought I forgot to pay the montly payment). But when I checked online everything was on time. I am so pissed off with this increase. They made my APR 3 times of what my current APR is! This is ridiculous. Infact, I am paying off my balances 2 -3 times in a month, whenever I find money in my checking account (so that I can get out of debt). This is gonna hurt me alot.
Will the increase in APR mean interest calculated for previous outstading balance too? Or is it gonna be calculated for new purchases? I am not sure if I am going to be out of debt if such increases keeps on hitting me!
Can't we do anything against this? This is so unfair for people who make their payments on time.
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I am being held prisoner by my loyalty to Citibank . All of my debt is held by Citibank (including student loans) so I can't even take advantage of the balance transfers, or threaten to take my business else wear without opening new credit cards. It was an extremely difficult decision, but I decided to fire Citibank (opt out). Afterward, it was like a weight has been lifted because now I am in control of my debt and my rate can't go up. It's great motivation to pay down the debt so they can't jerk me around and make anymore money off my fear of "what if I need the credit". I recommend it for anyone who can afford it!
I just received my statement today with a min of $511 and an increase apr from 25.99 to 29.99, when I called and asked why the jump, she said I was latei n October…are you freakin kidding me.. your going to go back 3 months ago, and be like oh sorry we are increasing your apr.
They won't do anything regarding my min fee. saying I was late 2 times in a 12 month period..are you serious?? I've been with citibank for years! and this is what they do to screw you. If I only had gone back and canceled them when I did a balance transfer to American Express. Aye…what do I do…I would love to close the card, but I don't want to be stuck with a certain amout per month, n then won't be able to make changes…
You could really be a cardholder of citibank for decades, they really don’t care about that and give no special treatment. BTW, I heard citibank was started back in 1915 or somewhere around that time and that is was part of the U.S. government…a state department bank. Anyone know anything about this?