Contact your Senators/Representatives re: C rate increase
I've been a Citibank customer for 15 years with a credit score in the high 700's & accounts in good standing. Along with millions of other customers, I received a notice that the interest rate on my card & my wife's card is being increased 30% & 40% respectively.
The credit card legislation that takes effect in February will prohibit these actions, so Citibank is taking one last shot at screwing their customers.
Citibank would be gone if it were not for government bailouts. Pandit's stated goals are:
"Citi's goals in deploying TARP capital are threefold: to help expand available credit for consumers and businesses; restore liquidity and stability to the capital markets; and support the recovery of the U.S. economy"
This move contracts credit and spending, makes consumers more leery of using the credit that they do have and does not support the recovery of the US economy.
With this huge move to raise rates by extraordinary amounts for their good customers, Citibank is clearly so desperate for capital in the short term that they're willing to burn their best customers. Stay away from this stock & if you have been affected by Citibank's sleazy last minute rate increase, contact your Senators and Representatives.
If nothing else, Citibank shareholders & customers deserve to see CEO Pandit explaning this latest action in a congressional hearing.
That is why companies like citi should not raise rates on people who consistanly paid every month for years. Fees are generated by these customers for every transaction. It's money in the bank. Maybe they need to evaluate customers on payment history and credit history instead of an all out assault on their card holders.
For all of those who say "Pay your bills on time and they won't raise your rates.", I figure you don't have a citi card, you already have a high rate because your credit stinks, or you're on Mommy and Daddy's cards.
Bad move on their part. I've had 7.9% for about 5 years and used their card for my online purchases. about 3 months ago they raised my rate to 18.99%. I called and they lowered it back to 7.9%. Last week I received a letter stating that my card is now at 18.99%. I've decided to cash in my points and cancel my card. By the way I have an 805 credit rating and never missed a payment. Personally I pay off my card every month but I'm sick of the games. I have two other cards and neither have done this.
Did you see the opt out area on the letter. What a joke!