Comments on: Uncle Sam Just Winked at Citi’s Credit Card Rate Increase http://www.senseoncents.com/2009/07/uncle-sam-just-winked-at-citis-credit-card-rate-increase/ Navigating the Economic Landscape Thu, 18 Mar 2010 11:29:21 +0000 http://wordpress.org/?v=2.9.2 hourly 1 By: Wenluc http://www.senseoncents.com/2009/07/uncle-sam-just-winked-at-citis-credit-card-rate-increase/comment-page-1/#comment-9594 Wenluc Thu, 18 Feb 2010 04:07:19 +0000 http://www.senseoncents.com/?p=7125#comment-9594 Had my card for 10 years, and just like many of you, used it for major events such as college tuition. I never even received a letter,(neither did my mother whom has had business with them for more than 15 years)I have a balance of about $10,000 therefore, only on interest, I have to pay $250. When I called Citi to ask them why this change was made and told them I never received any notice, they did not believe me; however, they attempted to help me by refunding some money for last month balance but as of right now I cant pay the $400 min payment due...It is so upsetting and frustrating that after so many years of business with this company and never being late or over my credit limit, they did not even had the courtesy to explain to me about this changes sooner and give me some options to help me at least keep my card open, because at this point the only option is to get involve with a credit card counseling group to hep me pay off this card. Had my card for 10 years, and just like many of you, used it for major events such as college tuition. I never even received a letter,(neither did my mother whom has had business with them for more than 15 years)I have a balance of about $10,000 therefore, only on interest, I have to pay $250. When I called Citi to ask them why this change was made and told them I never received any notice, they did not believe me; however, they attempted to help me by refunding some money for last month balance but as of right now I cant pay the $400 min payment due…It is so upsetting and frustrating that after so many years of business with this company and never being late or over my credit limit, they did not even had the courtesy to explain to me about this changes sooner and give me some options to help me at least keep my card open, because at this point the only option is to get involve with a credit card counseling group to hep me pay off this card.

]]> By: Becky http://www.senseoncents.com/2009/07/uncle-sam-just-winked-at-citis-credit-card-rate-increase/comment-page-1/#comment-9332 Becky Sun, 07 Feb 2010 00:19:22 +0000 http://www.senseoncents.com/?p=7125#comment-9332 After receiving my rate increase and choosing to opt out of the program, I contacted CitiBank in regards to the new law passed by the Obama Administration. With that being said, the new law passed states that no credit card company can raise your interest rate unless you are 60 days late on a payment. Being a consumer who is responsible, never late on a payment, always pays more than the monthly minimum, I questioned this. The CitiBank rep was aware of this new law and said she would have to put me on hold. After returning to my call, she informed me that "At this time, CitiBank is not available to discuss this information because CitiBank has not decided how the new law was going to effect them." When I proposed a late date to contact CitiBank back in regards to this matter, once again, she said she was not able to discuss this with me. I suppose this could be due to the fact that the new law does not go into effect until July 2010. Who knows if CitiBank will adopt a better proposal for their reliable customers that pay their bills on time. It's not right for these banks to make all consumers pay for other's defaults. After receiving my rate increase and choosing to opt out of the program, I contacted CitiBank in regards to the new law passed by the Obama Administration. With that being said, the new law passed states that no credit card company can raise your interest rate unless you are 60 days late on a payment. Being a consumer who is responsible, never late on a payment, always pays more than the monthly minimum, I questioned this. The CitiBank rep was aware of this new law and said she would have to put me on hold. After returning to my call, she informed me that “At this time, CitiBank is not available to discuss this information because CitiBank has not decided how the new law was going to effect them.” When I proposed a late date to contact CitiBank back in regards to this matter, once again, she said she was not able to discuss this with me. I suppose this could be due to the fact that the new law does not go into effect until July 2010. Who knows if CitiBank will adopt a better proposal for their reliable customers that pay their bills on time. It’s not right for these banks to make all consumers pay for other’s defaults.

]]> By: One more victim http://www.senseoncents.com/2009/07/uncle-sam-just-winked-at-citis-credit-card-rate-increase/comment-page-1/#comment-7303 One more victim Sat, 07 Nov 2009 03:42:43 +0000 http://www.senseoncents.com/?p=7125#comment-7303 Same thing here. I had 9.75% for several years, today got the letter saying they are going to increase interest to 29.99%. TRIPLE the interest rate? As majority of people here, I was never late or over the limit, always paid at least minimum payment, carry balance (currently around $800). My answer: pay the balance immediatelly and never deal with that tax-supported financial monster again. Company run by morons: Who in the right mind will increase the interest rate for the cash strapped consumer right before the shopping season? Same thing here. I had 9.75% for several years, today got the letter saying they are going to increase interest to 29.99%. TRIPLE the interest rate? As majority of people here, I was never late or over the limit, always paid at least minimum payment, carry balance (currently around $800). My answer: pay the balance immediatelly and never deal with that tax-supported financial monster again. Company run by morons: Who in the right mind will increase the interest rate for the cash strapped consumer right before the shopping season?

]]> By: will http://www.senseoncents.com/2009/07/uncle-sam-just-winked-at-citis-credit-card-rate-increase/comment-page-1/#comment-5354 will Tue, 22 Sep 2009 14:15:50 +0000 http://www.senseoncents.com/?p=7125#comment-5354 Got my letter for rate increase today...25.24% WTF??? I had the card for years,never late and low monthly balance. That explains all the credit card checks I've thrown in the trash these past several months. I'll keep the card,but NEVER carry a balance on it again. Got my letter for rate increase today…25.24% WTF??? I had the card for years,never late and low monthly balance. That explains all the credit card checks I’ve thrown in the trash these past several months. I’ll keep the card,but NEVER carry a balance on it again.

]]> By: Laura C http://www.senseoncents.com/2009/07/uncle-sam-just-winked-at-citis-credit-card-rate-increase/comment-page-1/#comment-4233 Laura C Sun, 16 Aug 2009 07:57:12 +0000 http://www.senseoncents.com/?p=7125#comment-4233 I was shocked when my Sears Gold MasterCard rate just jumped from 10.24% to 25.24% APR I've had the card for years!! Have a $46.00 balance that I had just paid off before I opened their letter!! W""""""!!?? Obviously my credit was good with them "Citigroup" or I wouldn't have had the rate to begin with. I would like to know who this isn't happening to. I was shocked when my Sears Gold MasterCard rate just jumped from 10.24% to 25.24% APR I’ve had the card for years!! Have a $46.00 balance that I had just paid off before I opened their letter!! W”"”"”"!!?? Obviously my credit was good with them “Citigroup” or I wouldn’t have had the rate to begin with. I would like to know who this isn’t happening to.

]]> By: Joshua C. http://www.senseoncents.com/2009/07/uncle-sam-just-winked-at-citis-credit-card-rate-increase/comment-page-1/#comment-3695 Joshua C. Mon, 27 Jul 2009 18:49:06 +0000 http://www.senseoncents.com/?p=7125#comment-3695 I was effected by this rate increase! I've had my Citi card for years, and used it often to help put me through college! I've never made a late payment on it and had an interest rate of 13.99%, which I already thought was too high. Then I get a letter from Citi saying they are going to increase that APR to a whopping 29.99%!!! Certainly, I wasn't going to deal with that... I opted out and closed my card. They won't see any future business from me!!! I was effected by this rate increase! I’ve had my Citi card for years, and used it often to help put me through college! I’ve never made a late payment on it and had an interest rate of 13.99%, which I already thought was too high. Then I get a letter from Citi saying they are going to increase that APR to a whopping 29.99%!!! Certainly, I wasn’t going to deal with that… I opted out and closed my card. They won’t see any future business from me!!!

]]> By: Mike http://www.senseoncents.com/2009/07/uncle-sam-just-winked-at-citis-credit-card-rate-increase/comment-page-1/#comment-2928 Mike Thu, 02 Jul 2009 09:20:58 +0000 http://www.senseoncents.com/?p=7125#comment-2928 I'm not sure how raising interest rates is going to facilitate the consumer activity which USA (and the rest of the world for that matter) is depending on to relieve us of this crisis. I understand that at its core, banking is a business and that banks can not afford to care about anyone besides themselves right now. In a business sense it's a good decision I suppose.. but what are its longer term implications? Might I predict.. -Acceleration in credit card defaults -A significantly lower credit score average among American citizens (Less applications for car/home loans in the future) -Significantly decreased retail spending -Increased saving rate When BOA raised rates on my credit card (nearly double!) I had no choice but to put all my spending cash towards paying it off as quickly as possible, and I'm sure that most people will do the same. Banks are choking clearly, and that lack of air is being passed right on to the struggling, unemployed citizen with student and car loans to pay. The age of the under-the-table entrepreneur is surely fast in the making. BTW I love your blog! I’m not sure how raising interest rates is going to facilitate the consumer activity which USA (and the rest of the world for that matter) is depending on to relieve us of this crisis.

I understand that at its core, banking is a business and that banks can not afford to care about anyone besides themselves right now. In a business sense it’s a good decision I suppose.. but what are its longer term implications?

Might I predict..
-Acceleration in credit card defaults
-A significantly lower credit score average among American citizens (Less applications for car/home loans in the future)
-Significantly decreased retail spending
-Increased saving rate

When BOA raised rates on my credit card (nearly double!) I had no choice but to put all my spending cash towards paying it off as quickly as possible, and I’m sure that most people will do the same.

Banks are choking clearly, and that lack of air is being passed right on to the struggling, unemployed citizen with student and car loans to pay. The age of the under-the-table entrepreneur is surely fast in the making.
BTW I love your blog!

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