var json_comments = new Array("
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Telekinesis123
December 6, 2008 1:51 AM
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Wow people are getting epically screwed.

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2 replies
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meske
December 6, 2008 5:53 PM
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@Telekinesis123: I've got near perfect credit, and we rarely carry a balance. Got the letter, and opted out. So, I keep the same rate till my term is up in 2010. We'll see if they want to let me go at that point...

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supercereal
December 6, 2008 11:59 PM
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@meske: I doubt they would fight to keep you around. Like you mentioned, you rarely carry a balance, and thus offer them little profit. I'm sure they can find someone more fiscally irresponsibly to make more money off of.

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humphrmi
December 7, 2008 3:17 AM
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@supercereal: Agreed, but this is still such a stupid move for them. People who charge regular daily purchases and then pay off their balances provide a lot of vendor fee revenue. The APR increase doesn't actually increase their bottom line, but losing the customer does reduce it (albeit not as much as a balance-carrying customer.) But that's essentially risk-free revenue they've lost in order to raise rates that they don't get. Seems really stupid to me.

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mac-phisto
December 7, 2008 7:28 PM
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@humphrmi: it's not entirely risk-free. what happens when the person who usually pays in full starts carrying a balance at their 4.99% rate? now citi is in a position where they are lending at below-market rates to a consumer that has changed their borrowing practices.

this is why the citi move makes sense. yes, card holders might choose to dump their citi cards & seek a new credit card bank, but they will most likely not find a rate equivalent to the one they had at citi before the rate hike - they will be met with a new higher rate that more accurately reflects the current market conditions.

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smint
December 6, 2008 1:52 AM
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Is this only for new purchases, or is my 8.9% rate on a card I no longer charge anything on going up on the existing balance?

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2 replies
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rugman11
December 6, 2008 2:08 AM
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@smint: I think it depends. The notice I received (which I confirmed with Citi) stated that only my default APR and my APR on new purchases would change. Since I am in the process of paying off my card and won't be making any new purchases, I decided to let them raise the limit, since it won't affect me at all.

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I want my Pepsi Throwback back!
December 6, 2008 4:15 AM
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@rugman11: That is exactly what my letter said too. We left the account open and we are paying on it, as usual, but we cut up the cards. We got that notice two months ago and our APR hasn't changed.

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Haltingpoint
December 9, 2008 10:27 PM
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@I am Mrs. Nerdtastic.: One alternative might be to call them and ask them to lower it. I called and got it lowered from the ridiculous ~18% they raised it to down to around 15% which is still ridiculous (I had around 11% originally). I also complained quite a bit to them and assured them that if I ever did plan on carrying a balance that it would be with one of their competitors who doesn't screw over their customers.

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smint
December 6, 2008 5:10 AM
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@citnos:

I just got mine with my last statement. I'll keep an eye on my rate - if it goes up, I have low-rate balance transfer offers out the ass.

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seraphicstar
December 6, 2008 1:57 AM
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that sucks.
and that girls eyebrow piercing looks like its trying to escape...

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6 replies
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ribex
December 8, 2008 4:55 PM
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@seraphicstar: I hate that photo. I didn't realize that others also dislike it.

For me, it's the cheekline/teeth interface that is nauseatingly jarring.

Make it go away :(

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xwildebeestx
December 8, 2008 2:48 PM
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@seraphicstar: Consumerist just saved me whatever I would have spent on breakfast this morning.

Thanks, I think.

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oldtaku
December 6, 2008 7:37 AM
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@seraphicstar: If I were the piercing I would be desperately trying to escape too. I might be eaten next!

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Barney_The Plug_ Frank
December 6, 2008 12:53 PM
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@sarusa: I didn't even notice the piercing! I know, I'm a pig.

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weakdome
December 6, 2008 4:35 AM
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@seraphicstar: Ugh. When this hit the Friday photo pool, I gagged. It's STILL a nasty photo, and I'm still gagging. I really hoped consumerist would bury it and never show it again, but no chance I guess.

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courtarro
December 6, 2008 4:58 AM
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@weakdome: They've already used it twice. I think they're going for the cleavage boost.

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weakdome
December 6, 2008 2:02 PM
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@courtarro: I find it hard to believe that this is the best cleavage we can find from this site.

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downwithmonstercable
December 6, 2008 5:22 PM
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@weakdome: Maybe all the porn sites have shut down with the recession?

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Whiskey Tango Foxtrot
December 6, 2008 2:03 AM
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So in essence, despite promises and a multi-billion dollar bailout, its \"business as usual.\"

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parad0x360
December 6, 2008 2:11 AM
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So let me get this straight.

The bank was in bad shape, one of the reasons is because due to the economy alot of their customers could not pay their bills.

The FED bails them out of deep shit and then they raise the rates of the people who could not pay the bills even more so in essence they are going to make it even HARDER to pay the bill since it will be higher?

Makes perfect sense...guess they will need another bailout soon.

Why dont these banks get it? People are having a hard time. If they want the economy to bounce back they need to get more money into peoples hands not less.

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3 replies
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Honus
December 6, 2008 5:31 AM
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@parad0x360:

It's actually WORSE than that. They bumped my rates despite my never missing a payment, AND carrying a balance (due to board exams and whatnot from education).

I'm being penalized, despite being the exact candidate who only HELPS their income by carrying a balance and making regular payments.

As such, I'm cutting up my cards. I will make no more purchases on that card and citi is now dead to me. I'm debating calling them and letting them know how I feel, but I'm not sure as that it would be at all valuable, since this is all part of some national restructuring nonsense.

Also, they should have to forfeit all this Citi Field nonsense.

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woogychuck
December 6, 2008 6:05 AM
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@Honus:


Same here, my wife and have had to use our card more than normal and have anywhere from 25% to 40% of our balance used most of the time and our rate is going up 5%. We've never misssed a payment and only went over balance once more than 4 years ago.


Thanks Citibank, would you like to bend over a little further?

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catnapped
December 6, 2008 4:04 AM
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@parad0x360: They're only looking out for themselves...they pretty well don't give a damn about the greater economy--only whatever share they can get out before it crashes.

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whitjm5
December 6, 2008 2:19 AM
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Corporate greed is disgusting.

As is the picture. Boobs =/= hot.

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4 replies
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VoxPopuli
December 6, 2008 9:02 PM
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@whitjm5: OK, you guys are just plain mean.

That said, I'm rather disturbed by the fact that the left eye is staring out the left corner. Don't eyes usually stare in the same direction?

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wee0x1B
December 8, 2008 5:36 PM
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@VoxPopuli: What's mean about the woman in the pic being fat and ugly? That's the entire reason behind her using the \"myspace angle\". She's trying to cash in on her one perceived asset (meager cleavage, likely due to her being overweight), and it's pretty glaringly obvious.

The image is a pretty good example of fail, I think.

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TechnoDestructo
December 6, 2008 4:53 AM
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@whitjm5:

Pic is appropriate. It is a Fat Girl Angle Shot. This is analogous to the impression given by Citi before that we found out that yes they are in fact fat and ugly.

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zentex
December 6, 2008 5:29 PM
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@TechnoDestructo: I don't know wether to commend or condemn that statement; it's both right and wrong at the same time.

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Eric1285
December 6, 2008 2:20 AM
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I got one of these letters in the mail too. I'm working to pay down my credit card debt completely. Once I do that this card will be cut up and I will open a new card with another company for my everyday purchases.

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humperdinck
December 6, 2008 2:20 AM
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I got this letter last week, hiking my interest rate from 14% to 24%. Just as they were getting their big bailout.

I typed up the opt-out letter, but I haven't sent it yet. I'm considering the option of finding a secured personal loan against my car to pay the Citicard (and other cards) balances down to zero, and letting them charge me 24% on a zero balance.

Greedy fucks.

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2 replies
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DraconWolfX
December 8, 2008 5:21 PM
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@humperdinck:


I did that! I took out a personal loan for my Citi balance because of the letter and interest rate hike. Talk about ridiculous, now they're going to be getting 22% of $0 from me. Hope they enjoy it.

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PhoebeC
December 8, 2008 9:34 PM
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@DraconWolfX: They're getting 15.99% of $0 from me, I promptly transferred my balances to two cards that average about 5%. Screw Citibank! I've never missed a payment in the 12 years I've held the card.

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saintpetepaul
December 6, 2008 2:29 AM
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I got my letter this week too. They jacked me up to 24% as well. Absolutely pathetic. Needless to say, I opted out. I have a sterling payment record with them, I pay off my balances regularly and up until now wasn't terribly unhappy with them. It kills me though. Had they let things be, they would have continued to make money from me. Now they won't make a dime. What kind of sense does that make? I get it that they are trying to limit their exposure, but jeez.

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1 replies
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P_Smith
December 6, 2008 7:16 AM
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@saintpetepaul: If you don't owe them anything and are getting rid of the card, a \"Stick the card up your nethers\" letter (or words to that effect) might be in order.


Some may say such a letter is out of order, but compared to the actions of SHitiBank, it's better than they deserve.

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Lars
December 6, 2008 2:32 AM
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These banks are taking bailout funds to shore up bad investments, to pay dividends, and to pay executive bonuses. They are disinterested in new loaning.

If we want to stimulate the economy, there is one good solution. Direct government spending on the commons. Infrastructure, public health, and education. And we must not let state budgets collapse either. Send this money directly to companies and entrepreneurs who actually produce something of value for the economy. Not to banks that create money out of thin air with their privilege of fractional reserve banking. And moreover, make that money debt free. Create it for a need.

We need only go out to sidewalks in many of our cities and see a WPA logo still remaining in them for a reminder of approaches that work to recover an economy.

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Erwos
December 8, 2008 2:03 PM
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@Lars: Problem is, we're going to need to _decrease_ the budget sooner or later. Do you really think pumping tons of money into projects which will mandate increases _forever_ is a great idea?

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k6richar
December 6, 2008 2:38 AM
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was there no actual stipulation/rule in the bailout that they had to make it easier and cheaper for people to borrow money? Or were they just handed a big sack of money and the government hoped they would do that?

More likely someone handed them a lot of taxpayer money, much of which went directly back to the politicians who handed it out. Now you have to pay more taxes to cover the bailout and pay more to the banks who are still losing money, but the politicians are not doing anything to fix.

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humphrmi
December 7, 2008 3:21 AM
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@k6richar: Unfortunately, Paulson argued (successfully) that putting too many stipulations on the bail out money might discourage at-risk banks from taking the money, and then failing.

Which was really a stupid argument in retrospect. After Citi took the bailout, they still nearly failed and the government still had to step in and backstop their loan portfolio to save them.

So in other words, even if these banks didn't take the bailout, the government would still prevent them from failing anyway, so the old \"wah, we can't include stipulations in the bailout\" argument is pretty much BS.

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Anonymous
December 6, 2008 2:39 AM
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I received my letter, called and haggled. I had to change my card type (from a Citi to an AT&T,) but my effective increase only turned out to be 2%. I am still upset, so I will not carry the slightest balance on the card.

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tedyc03
December 6, 2008 2:39 AM
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Well I guess it's time to pay the citi balance in full.

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1 replies
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Traveshamockery
December 7, 2008 6:52 PM
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@tedyc03: Is there ever NOT a time to pay the balance in full?

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Anonymous
December 6, 2008 2:45 AM
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Yup, I got a letter too. Citibank customer for 22 years and a FICO of 802 although sometimes I carry a few thousand dollar balance. I was paying Prime + 4%, the letter stated it would be Prime + 6% with 14.99% minimum. I opted out and my card will be canceled in 2011.

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greggen
December 6, 2008 2:49 AM
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I called my credit cards and requested a reduction... BOA said diaf, but citi dropped my rate from 28 to 10.9. I hadnt noticed, was paying off the citi rewards card each month.
Guess they will wait for one mistep and stick it to me baby!

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Anonymous
December 6, 2008 3:08 AM
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I got one of the letters - raising my 8.99% rate to 14.99%. I carry a low to no balance on a good sized (for me) credit line. My credit score is well over 800. In all the years I have had this card, I had one erroneous late payment that was corrected by Citibank immediately. I use this card to make large purchases that I usually have the money ready to pay off. I have no idea why I got one of the letters.

I was so mad, I chose to opt out. Maybe not my best decision, but the card doesn't expire until 2010, so I'll shop around for another card between now and then.

If it made any sense why I got a letter, I would understand, but it makes zero sense. Funniest part was I got a letter raising my credit limit the very next day. :)

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AtomicPlayboy
December 8, 2008 7:49 PM
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@OrlandoPaddum: Yeah, I had a similar experience: Citi sent me a letter raising my credit limit $3k+ a few weeks ago, then sent me this silly rate increase notification. Like you, I opted out, which means I can still use the card at the current rate until it expires in two 2011. And, like you, I'll be spending the interim time looking for a better card. This is unfortunate, as I've been quite pleased by my experience with Citi.

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Anks329
December 6, 2008 3:13 AM
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got the letter as well, prime plus 13.99%... and i have never carried a balance, and i don't plan to. Interestingly, a week before sending me this letter, they increased my credit limit.

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SarcasticDwarf
December 6, 2008 3:21 AM
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Every company is doing this right now. Chase and Amex have done it in the past two month as well.

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1 replies
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TreyWaters
December 6, 2008 6:42 PM
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@SarcasticDwarf: I wouldn't say \"every\" company. My fixed-rate Visa is still at 5.99%

;-)

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OolongCaloophid
December 6, 2008 3:29 AM
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This happened to me too. So.. shameless plug, I blogged about it. Scanned the letter they sent me and edited it. Yeah, I have nothing better to do.

[www.honestlyanomalous.com]

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2719
December 6, 2008 3:31 AM
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Posted this on Nov 24

\"Funny. I just received a latter from CitiBank telling me my APR will change from 6.49% to 14.99%, my credit score is 800+, never missed a payment, $10000+ credit line with $300 balance. Tried to buy a laptop on Newegg for $650 and they declined the charge. Had to call in to get it to go through.

And I just learned they will get a ton of money from the government.

F**k you Citi! Not paying for your mistakes...I feel sorry for the employees though. \"

Not really news...BTW I opted out and you don't have to close the account immediately, the card is valid until the expire date.

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3 replies
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DH405
December 6, 2008 6:56 AM
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@2719: As soon as you place a charge on that card, you are opting back into the rate hike. Cut it up or stick it somewhere with a big sticky note saying DO NOT USE UNLESS STARVING TO DEATH.

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2719
December 7, 2008 1:06 AM
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@SMSDHubbard:

Well the lady on the phone told me the rate will not be changed and the card will expire after it's expire date, the only difference is I won't be able to renew the card.

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Anonymous
December 6, 2008 8:52 PM
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@SMSDHubbard: No, if you opt out of the rate hike, your current terms apply until the card expires, at which time the account is closed. My partner got one of those letters, with a 5% hike. This card was already on the list to be paid off and closed; it's now been moved up to the top. And of course, we opted out.

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laserjobs
December 6, 2008 3:34 AM
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THE BANKS NEED TO BE NATIONALIZED NOW!!!

Enough of this bullcap

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Anonymous
December 6, 2008 3:38 AM
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Too many whiners here. If you don't like the rate then stop buying stuff that you can't afford. This I-want-it-now-or-I-am-going-to-have-a-temper-tantrum attitude is the major reason we have the current financial crisis. Quit blaming the companies. No one put a gun to your head and forced you to buy anything. Citi sent me a letter also and raised my credit limit which really surprised me. I NEVER run a balance so I don't even care what the interest rate is.

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madanthony
December 6, 2008 3:47 AM
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Customers across the risk spectrum have been targeted - including, most oddly, lowest-risk customers with top FICO scores who don't carry balances.

That doesn't make a whole lot of sense. 20% of 0 is still the same as 10% of 0. Unless they want to make sure that if the person does start carrying a balance they can hit them up. Still, someone with an 800 FICO can probably find a better card to balance-transfer to if they need to start carrying a balance.

I have a citi card only because it was my first credit card, opened when I was a freshman in college. It's my oldest card by a few years, so I want it to stay on my credit report. I try to charge $5 or so on it once or twice a year so they don't close the account. It's the only card I have that has no rewards.

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veronykah
December 6, 2008 9:53 AM
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@madanthony: Same reason I have mine. I would fall into the \"lowest-risk customers with top FICO scores who don't carry balances\" category. Guess I'll make a different decision when it comes to what card to use. Even though I don't carry a balance, I won't be using their card anymore.

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Anonymous
December 6, 2008 9:36 PM
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@veronykah: This is exactly where I stand; no balances ever and we charge ~$4K month on the card. I got the rate increase and I can't cancel the card since I have a bunch of air miles that *may* be useful in the future (with no annual fee), but I'm going to find a new non-Citibank card to do my future charging. I'll just keep the card around and put something small on it every month just to keep it alive.

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wheresmysamuraii
December 6, 2008 4:00 AM
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Got my letter a few days ago. My rate on my regular old citicard is going from 12.9% to 19.99%+prime. Funny enough, I have another citicard, a black diamond one. The black diamond card's interest rate will not be going up. I called and confirmed that this was the case. I was going to cut up the old card as soon as I had finished paying it off anyway.

I wonder if only particular card types are being targeted for the increase.

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Anonymous
December 6, 2008 4:08 AM
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Thanks Citi for making me shop around and get a better deal. We have had a Citi card for 14 years and have NEVER made a late payment or gone over our limit. We charge about $500-$1000 per month and usually pay it off each month. But this ticket me off on the principle and I applied for a card through USAA and have a rate now that is over half as low as what Citi jacked us up to. We have now removed our Citi cards from our wallet and will not use them again.

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JamesEnsor
December 6, 2008 4:12 AM
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Yeah, my wife got one of those nice little letters informing her that they were going to change her 8-point something percent fixed rate card to like a 16% or so variable rate card.

Needless to a say a lot of \"oh HELL no\"'s went on, and when she called Citi to close out the card the rep didn't even throw her a bone and give her to retention. It was like \"ok! You're done!\".

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Traveshamockery
December 6, 2008 4:19 AM
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customers across the risk spectrum have been targeted - including, most oddly, lowest-risk customers with top FICO scores who don't carry balances. This would seem to indicate that the repricing is more widespread than Citi has indicated.

That's me...I've never carried a balance, have strong income, and a 744 FICO...and my rate just went from 8.74 to 14.99%.

Of course, it cost them more to mail the letter than I've ever paid in finance charges, so changing my rate actually cost them money.

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1 replies
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varro
December 6, 2008 9:37 PM
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@InfiniTrent: Not to mention the merchant fees - even if you pay in full, Citibank will still lose the merchant fees off your purchases.

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azzie
December 6, 2008 4:23 AM
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Paying the balance in full (as many of readers pledge to do) is exactly what Citi needs to help their cash-flow. In short term it would work even better for them than collecting higher interest.

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uncle_wiggly
December 6, 2008 4:23 AM
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I got this letter last week about the increase on the credit card and then I looked at my Citibank checking account statement and saw that my overdraft line of credit was changed so that I was being charged 10 dollars a day for each day that my account was overdrawn, while over the past ten years there was never a fee. I called them up and after ranting about this I got connected to the voicemail of the manager, with who I've left three messages over the past week and have never gotten a return phone call. Presumably, she's too busy servicing Prince Alaweed to bother returning my call.

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Parting
December 6, 2008 4:23 AM
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I don't see a problem here. A company is on verge of ''closing doors'', deep in the re; your tax dollars are only a temporary relief. Now Citi needs to become profitable again...

Rate increase is one way to get there...

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Mr_Mantastic
December 6, 2008 4:25 AM
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I received the letter last week, too. I've never carried a balance on my Mastercard. I haven't gotten a letter about this regarding my Costco Amex. It looks like I'm going to have to consider the Sam's Discover card or something else. Anyone have any ideas of a card that gets good cash back rewards?

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W24x192
December 6, 2008 4:25 AM
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I got the letter, but seem to not have been hit as hard as others. They do let you opt out. You keep your current terms, then your account will be closed when your card expires, upon which you must pay off your balance under the current terms.

I will just pay it all off this month, have a little less cash around, and try not to use it. I don't think I've used the card since February of 07, so I'm at least good on that end. My card expires at the end of this month, anyway, so if I opt-out, I'm out a last-ditch safety net.

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balthisar
December 6, 2008 4:37 AM
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My Citi card is my number one card, the one I use for as close to 100% of my spending as I can. Actually the only open card I use, period. And so far -- knock on wood -- no rate increase, and nothing in my online account to indicate my rate is going up. I usually pay off every month, or carry an insignificant (to me) balance, 800 credit, and probably make them more in discount fees than interest.

If I get my rates jacked up, I'll have some thinking to do.

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neekap
December 6, 2008 4:57 AM
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My rate is jumping from 7.49% to 14.99%. Nothing like a 50% increase. I think the balance on this card is going back over to my Chase card (which has a 12.99% rate).

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schwnj
December 6, 2008 5:14 AM
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@neekap: Actually, that's a 100% increase.

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oneandone
December 8, 2008 4:33 PM
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@schwnj: Yes. That's what I got, also - same rate to same rate increase. There's no specification of 'new' purchase APR - just 'purchase APR'. I'm calling to see if they'll let me keep it at the lower rate, or increase it to just 8%. If not, I'll probably opt out - but it's my oldest card - after the Providian/WaMu/Chase card I just lost - AND I just got my score above 800, so I'm hesitant.


I'm going to be calling them tonight to see if we can work something out. Citi also holds all my student loans (at acceptable rates) and I know the 2 divisions or companies or whatever probably have nothing to do with each other, but I want to get either my cc rate not changed or my loan rate lowered. We'll see.


I've had the card for a while, always carried a balance. Less than 2k left now (it was in doubel digits before) and it'll be gone soon, but I would have thought I was one of their moneymaker customers.

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schwnj
December 6, 2008 5:14 AM
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Unfortunately for me, I financed a good chunk of my graduate education on my citibank card, and I'm still carrying the balance. I got the letter saying my rate was going from 9.99 to 14.99. I opted out and I will spend the next two years paying off the balance. (Trust me, the difference in the finance charge between my current rate and the jacked up rate is enough to justify closing the account.)

However, I am not convinced that I couldn't just contact Citi in two years when my card expires (and the account would close) and talk them into keeping the account open under different terms.

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Anonymous
December 7, 2008 6:17 AM
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@schwnj: I agree. I think in two years they will want to retain you as a customer. Good call.

I also am not in the Citi-basher's group. They are on the rocks. What did we think they were gonna do?

I have a Sears card with them but rarely use it. Chase and Discover have kept my rates the same but have doubled my minimum payment because Im what they call a \"low balance transfer offer milker\" and am carrying a 16 000 in debt at about 5% with them and have been paying it off for over 2 years. I guess they want to \"hurry me off the books.\"

Good luck paying off your debt etc.!

--steve

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kerichan
December 6, 2008 5:17 AM
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My rate hiked 10.99% to 17.99%. Called and opted out. Funny, had they kept my rate the same, they'd be getting my money for much longer, as I was going to get a non-student CitiBank card after I graduate.

Oh well, I'm sure some other credit card company will be happy to have my 780 FICO.

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Anonymous
December 6, 2008 5:30 AM
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i was one of many people who received this letter...and well...i make more than my minimum payment every month, have never been late, never went over my balance...and my rate was hiked up 'beginning October 1, 2008\" to well over the already outrageous rate I had...WTF...i'm opting out, I'll have the money for them within a month.

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Anonymous
December 6, 2008 5:35 AM
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I already got one of these letters. They pretty much doubled my APR %. I think we all need to make a big stink about this. People need to understand that when we sign a contract that has a certain APR if its fixed and our vendor changes the contract terms they are therefore in breach of the contract and we have every right to reject the changes. This means that as a default when our card is closed at its expiration we should not be subjected to adverse credit because we chose to reject their predatory contractual changes. Of course credit card contracts are the most notoriously difficult to understand but one of the reasons they issue this \"opt out\" letter is because they are aware of their breaking of our contract. WE NEED TO SAY SOMETHING! Don't be silent about Citiground changing your card terms. It is incredibly important that we do not let them take advantegous of us just because they are hermoraging money due to their own incompetence!

If enough of us say \"hey, its not my fault i couldnt accept the new APR. I am therefore not at fault for closing my card and thus should not have my credit score penalized.\" You need to ask citigroup if it will effect your score.

I'm fed up with the lies from our banks, and I'll be damned if I will suffer because of their ignorance!

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shorty63136
December 6, 2008 5:41 AM
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Got this letter in the mail this week. Guess who's not happy about it? Me.

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msbask
December 6, 2008 5:42 AM
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I got the letter too, but I don't ever use this card (I toss it whenever they send me a new one). I am just paying off about a $10k outstanding balance which is split between two really old promotional rates (2.9% and 3.9% until the balance is paid off).

Does anyone know if I need to opt out of this change to keep my promotional rates? The letter appears to indicate that my promotional rates are safe unless I screw up. Just wondering if someone could confirm that.

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lizzybee
December 6, 2008 5:43 AM
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Weird. They cut my credit limit by about $3,000 a couple of months ago, but according to my last check online, my interest rate *dropped* about 3.5%. I haven't gotten one of the notices you're talking about, but since I pay the balance off every month, and the credit limit was insanely high, I didn't care that much.

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knightracer
December 6, 2008 5:45 AM
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Out of the 5 members of my family with Citibank cards, all 5 of us received the notice. None of us carry a balance, so it the APR doesn't affect us, but we're still not pleased with the change.

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Anonymous
December 6, 2008 5:59 AM
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I've been a Citi credit customer for years; I have a credit line in excess of $40,000 and pay the outstanding balance on all four cards every month. (I have four cards because they limit the \"Cash Back\" rewards program to $300 per card.)

My credit rating is over 820.

And yet I got an insert from Citi telling me that my APR is going to increase to 29.99%.

If I didn't already pay off my charges every month, this would piss me off no end.

As it is, I'll look at other card reward programs and change in a heartbeat if I find a better deal somewhere.

The point of my message is this: my heart goes out to those who are getting so royally screwed by this BS.

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icntdrv
December 6, 2008 6:06 AM
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My rate just got hiked.

I have had a card with Citi for 3 years, I've never made a late payment on anything, I have a 789 credit score, no debt of any kind, and am earning around 50k a year.

How am I a credit risk?

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chrisjames
December 6, 2008 6:07 AM
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Ah, perspective. 3 million jobs lost in the future if the auto industry fails. 11 million cardholders screwed now, only 20% of one company's customers, and it's just the beginning. Not that there's any relevance in the comparison.

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Illusio26
December 6, 2008 6:09 AM
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I got the letter too. I didnt' really pay much attention to it though. I don't carry a balance, pay off my card early every month and have a high credit score. I couldn't even tell you what my APR was on this card before the hike.

I do think it sucks for the people who are struggling to pay their credit card bills every month. But such is the danger of living above your means.

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failurate
December 6, 2008 6:19 AM
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I think it is Citi's attempt to tell all of us they no longer want to be in the credit card business. These letters were an \"I'm taking my ball and going home.\" message.

I have them locked in at around 5% on balance transfers... I am fairly certain they can't weasel out of that, but if they do... hopefully my credit union card will be there to pick up the pieces.

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Allen Harkleroad
December 6, 2008 6:32 AM
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Yet again Citibank proves that in my getting rid of credit cards three years ago was truly one of best decisions I ever made. Don't miss them a bit.


Did you know Citigroup (aka Citibank) and JP Morgan Chase own 95% of NCO Financial Group (Nefarious Debt Collectors)? Citigroup 7% and JP Morgan Chase 88%. I guess NCO will be handing all the collections on consumers who are probably going to be defaulting on Citi cards soon.

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Anonymous
December 6, 2008 7:07 AM
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I, too, first thought the action was just to reduce cash out the door; then I too came to the conclusion that it was to forplay the new regulations. But I recently came across a couple of other blogs that showed Citi statistics such that about 60% of Citi's deposits are in foreign locations - which means no FDIC coverage for those depositors. If Citi fails, all those foreigners go bust and they'll have no appetite for buying Uncle Sam's TBill/TBond paper. So, I'm back to thinking that there really IS a need forCiti to hoard its cash-because it IS TRUE THAT CITI HAS FAILED ALREADY and the Fed is just propping it us because it does not dare let it fail.

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Ftp1423
December 6, 2008 7:33 AM
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I received this letter a few weeks ago and was able to just ask for my account not to be affected and not to be closed. They wanted to raise my interest rate from 13.99% to something like 24.99% and all I said was that I wanted to \"opt out\" of this new program but if possible keep my account. I asked them if there was any possibility of me keeping my account and keeping my old interest rate and the customer service lady \"helped\" me out by opting me out and keeping my interest rate the same. I feel like this is one of those things that as long as you ask then they won't do anything, but they are hoping that the vast majority of people won't fight the change. I have never carried a balance not have I ever paid anything other than the charges I occur from purchases, but they were still willing to work with me and keep my account the way it was, despite this new trend in increasing the interest rate.

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Anonymous
December 6, 2008 8:20 PM
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@Ftp1423: f you read the letter it explained how to \"opt out.\" you didnt have to ask for a favor. It was offered in the letter. you keep the interest rate, current terms until your expiration where your card will expire and you can continue paying off your bill at your current APR.

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Anonymous
December 7, 2008 6:20 AM
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@SherwoodPolyxena: SherwoodPolyxena, you are missing the point here. She managed to just get them to restore her rate and keep her account. She didn't opt out, she just had them restore things to the status quo ante.

She is right, they are counting on most people to just accept the terms or opt out. But if you call and ask, you can often get things done differently. It's just that most people wouldn't think of doing so.

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Blaaaah
December 6, 2008 7:37 AM
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I have two Citi cards. I have a Platinum Select Visa, which was my first Credit Card ever, and I have a Diamond Preferred Mastercard, which I just recently acquired.

My APR originally on the Platinum was around 20% or so. Over the course of 2 years, I had them reduce the APR to 12%. Never a late payment, I only carried a balance when I was taking advantage of a 0% APR promotion.

I built my credit up, as I'm only 22, and I recently got the Diamond Preferred Card that is something like Prime+2 or Prime+3, but it's around 8% APR the last time I checked. I was really stoked about that.

So then they decided to raise my rate on the Platinum Select card. That's cool. I'll transfer a majority of my credit line over from the Platinum card to my Diamond card and just toss the Platinum card in the back.

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Parting
December 6, 2008 5:22 PM
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@Blaaaah: As far as I'm concerned, if you pay an yearly fee for your credit card, then you are paying already too much. APR doesn't change much to that.

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Blaaaah
December 6, 2008 11:37 PM
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@Meltdown:
Nope! No yearly fee. That's what steered me away from AMEX. The Diamond Preferred Card has essentially the same benefits from what I could tell, but no fee. So win/win.
And I just dropped my Platinum Select credit limit from 5K to 500, and increased my credit limit on the Diamond Preferred from 3K to $7500, which is good as I'm applying to grad school right now, and my credit cards are financing my Application fees, GRE score transfer fees, and my Undergraduate Transcript Request fees.

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bitgod
December 6, 2008 7:42 AM
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I have 3 cards that I use, 2 of them, from BOA and from Citi/AT&T both jacked up my rates in the past month. I opted out on the BOA because that was the highest. I guess I should opt out of Citi too, which I kinda hate to do, both because I've liked working with Citi, and closing the the 2 lines of credit could really hurt me. It's going to take a while to pay them both off, I just hope card #3 from a smaller bank doesn't jack the rate up.

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Anonymous
December 6, 2008 10:04 AM
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I just got one of those \"opt out\" notices from them in yesterday's mail. Fortunately, I have a little over a month to send them the written notice to reject their increase, allowing me to just pay them down at the current rate. Also, their card is going into the shredder, alongside a different card that went into the shredder last year (they tried the same racket).

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emis
December 6, 2008 12:49 PM
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Dear Americans,

1) Thanks to the government giving hundreds of billions dollars to the banking system, prepare to pay out the ass in taxes for the rest of your lives, your children's lives and their children's lives... unless the country collapses

2) If you owe money due to being poor--prepare to be even poorer because those same big banks are jacking up your rates

3) Some effing prince in giving the thumbs up for this somewhere in the world

It's like we're regressing to 13th century England where the peasants work out in the mud fields to support the royalty... except in this case the royalty doesn't need to hold us in our place with weapons, the hold us in our places with oil and contracts.

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leprofie
December 6, 2008 1:07 PM
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Maybe its just me. No rate increases, and twice in the past week I've gotten increased lines of credit.

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GHETTO.CHiLD
December 6, 2008 2:00 PM
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This story sounds an awful lot like the email my wife sent you on Thursday afternoon Consumerist. tsk tsk shame on you. Give credit where credit is due.

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Skankingmike
December 6, 2008 2:05 PM
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I just got a line of credit increase and no letter in the mail talking about rising rates.


I didn't ask for the credit incrase, and i was about to transfer some high intrest rate loans to that card. but this has been the rumor now for about 2 or so weeks that they were going to raise the intrest rates on people. Hopfully they skiped me :P.

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drdom
December 6, 2008 2:17 PM
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Is it just me, or does Prince Alwaleed remind you of Don Novello playing the Father Guido Sarducci character. He even looks like him a little.

And his interview was on par with anything Father Guido Sarducci did.

Nice horsies he has there. I'm impressed. I wonder how long it took him to stage that shot?

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Anonymous
December 6, 2008 2:25 PM
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HSBC did the same to me, attempted to increase my finance charge from 13 to29!!!! I opted out and closed. Working to pay it off now... Once these cards are done with, I'm done with credit completely. I hope they realize they are losing money with all these ridiculous hikes.

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Anonymous
December 6, 2008 2:32 PM
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This isn't true that it's people who pay the balance in full. I very rarely use my citibank card and only have it because it's the card I've had the longest. I haven't carried a balance on it in well over 10 years. Anytime I do use it, it's generally paid in full before the due date. My letter said I'm getting raised to 19.99% interest. Oh well. I hardly use it anyway.

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Anonymous
December 6, 2008 2:32 PM
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The author off theis article is correct. They are targeting everyone. We pay off our balance in full every month and the FICO score is about 800 which is excellent. Time for a change - perhaps another bank or Discover Card.

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Anonymous
December 6, 2008 3:01 PM
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I have been a Citi Card member for 10+years. Always paid on time, and have a limit of $15K+, usually carry a balance of about 33% of limit, and I pay at least double my minimum payment every month.

They tell me I am a preferred customer, and I received a letter to increase my rate from 6.74% to 14.99%. That's total crap. I called the opt-out number to try and convince them to keep my rate low without closing my card, because closing my card would mess up my debt to credit ratio. They basically said tough luck.

At the advice of a friend, I called the regular CustServ number. After explaining my case, being a customer with an immaculate record, they passed me to a retention specialist that set me up with a new card and a 7.74%V rate. Not what I wanetd, but I'll take it for now.

I think the opt-out, is a way to scare the average borrower in to paying their debt off faster, or to double their profits. either way for them, a win-win.

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wildhalcyon
December 6, 2008 3:45 PM
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I've got a weird situation too. They increased my rate to 19.99% (up from 13.99%), AND increased my credit limit by $1500.

So, apparently I'm a good enough customer to lend more money, but not so good that they need to increase my rate. OR perhaps these particular rate increases have less to do with my standing as a customer and more to do with citibank's standing as a bank.

Its alright, I don't carry a balance, so it doesn't really bother me all that much. Just noticed it.

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Super1984
December 6, 2008 3:52 PM
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I carry no balance and have an excellent credit score (and haven't been late on anything), and I received a notice from CitiCard that my main rate is going up from 10.99% to a minimum of 16.99%.

This notice also had a ton of other fee increase, from cash advances to foreign purchases. I can opt out, but then my account is closed and my fico is affected (this is my oldest card).

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octajohnny
December 6, 2008 4:00 PM
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I have 2 citicards, and oddly enough, over the past 2 months, they had lowered my rates on both cards 1% via .5% decreases twice.

All you have to do this - just call them and tell them you are opting out. Your old rates will remain in effect until your card expires, though I am not sure what they will do then. If anything, if you are carrying a balance on your card, it buys you time to search for a balance transfer offer with another card.

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bluewyvern
December 6, 2008 4:18 PM
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I've been waiting to see this story on Consumerist -- I got this letter a couple of weeks ago. This was two days after I had just called to successfully negotiate back to my original rate after they slapped me with a default rate for a couple-days-late payment, so I called to ask, \"This letter is just a mistake, right? because we agreed on my rate just two days ago.\" Nope, they said this was happening \"across the board\", and nope, they couldn't negotiate. I really tried. I have a decent credit score and I'm carrying a balance, so they're making money off me and I should be their favorite customer. I told the rep I was opting out. I started to wonder if that was the best plan, though, since this card is a huge chunk of my available credit. I do NOT need the hit to my score. So I caved and called back to opt back in. Now I just have to pay or transfer the balance by Jan 31st to avoid paying their stupid new rate. Well, paid off is paid off, I guess it doesn't matter too much whether it's this card or the other one I was trying to snowball first. Pretty short notice, though.

It sucks. It doesn't send much of a message, but I have to do what's best for me, not just what will stick it to them...

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bonzombiekitty
December 6, 2008 4:23 PM
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I have two citi bank cards, my room mate has one (one of which is the same type as mine). He got a letter increasing his APR on his card, my APR has stayed the same for both cards. AFAIK both of us fully pay off the cards every month. They can go ahead and raise my APR, I don't care - just don't mess with my rewards.

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yso
December 6, 2008 4:26 PM
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My letter bumped mine from 6.99 to 14.99. I called the 800 number (one of the options) and when I asked for a confirmation, they said I'd get a letter. Haven't yet. Typing my confirmation of DECLINE in writing and putting it in the mail tomorrow. Deadline is January. I asked if this was going to happen to all citibank cards (just to see what they'd say) and she just said she \"couldn't say\".

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gardenwzl
December 6, 2008 5:07 PM
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I got my Citibank letter in the mail a week or two ago. They jacked my rate from 12% to 22%. I carry a $0 balance; just use it every other month for a small purchase ($20 or less) just to keep it open and maintain a good payment history for my credit score.

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Lcstyle
December 6, 2008 5:23 PM
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Saudi Bastards, we shouldnt let any foreign rich saudi bastards own anything in the United states. They should be able to come here and spend there money here but not own anything inside the united states itself. Why? This is exactly why. what does this guy care that we're all burning in hell while he's sitting in his horse ranch halfway around the world.

Everyone should boycott companies with a foreign majority controlling interest.

Oh, and lets not forget, credit card companies are the DEVIL people. cut your credit cards, end your addiction to DEBT!

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Anonymous
December 6, 2008 6:19 PM
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I got a letter. I didnt opt out because the letter says opting out will terminate your agreement with Citi. I hate them for the rate hike, but I'm more interested in protecting my credit score from short credit history than vindicating my rights by leaving one of the biggest credit card companies in the U.S.

That said, the rate hike doesnt hurt me. I pay my balance in full every month and I have for about eight years now. I was equally perplexed why they felt the need to include me in this rate hike. Oh well...jack it up to 60% for all I care because I'm still not going to pay them a dime!

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chilled
December 6, 2008 6:25 PM
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It's amazing how many different scenarios are described in these posts...must be 10 different rates.Wonder how Citi decides who gets the bigger shaft...

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Trick
December 6, 2008 6:29 PM
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Can we have some of those smart internet dwellers once again come back and tell everyone how the bailouts are great for us and how we are stupid and don't know how the financial markets work?

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Trick
December 9, 2008 4:59 AM
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@humphrmi:

Nobody?

Is there nobody available to talk down to us stupid people and tell us how this is business as usual?

You know, where we get none of the profits the bank makes but take care of their careless business \"as usual\" crap to the tune of 700 billion?

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laughingweek
December 6, 2008 7:09 PM
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I got a letter as well. My APR is going from 8.99% to 24.99%. If JEM were around she'd say it's \"truly outrageous\"!

I'm opting out for sure. I'm glad no one is having issues with it, because calling credit card companies is such a hassle. They spend 95% of their time convincing you that your best interests are to do nothing, hang up and dance their dance.

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sabrinad
December 6, 2008 7:37 PM
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Chalk me up on the list of reliable payers with no late payments or carried balance who got this batch of holiday cheer. Citibank, I'd never had cause to think particularly badly of your handling of my decade-old account before, but hey, you're making great strides! Think positive, if you keep reaching for the stars, maybe someday you'll be as worthless as Chase!

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kwsventures
December 6, 2008 8:34 PM
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Raising rates to cover the losses from deadbeats that are stiffing Citi. Solution: either don't use a credit card (ever heard of cash only?) or pay off the full balance each month. Then the credit card rate is meaningless to you. Let the other idiot pay the higher rates to cover the deadbeats.

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Anonymous
December 6, 2008 10:25 PM
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Happened to me. I also have a near perfect credit rating, use my card for one major purchase a year, and pay it back that month. I've had one late payment, 11 years ago.

So let me tell you why I'm keeping the card. It is my oldest cared and my line of near perfect credit with them goes back 12 years. If I drop them my credit rating takes a hit. I will only be using them for my netflix account, and my automatic payment will take care of that right away. I will never make another purchase with them and Mr. Horse Guy again.

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katylostherart
December 6, 2008 10:52 PM
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it makes sense (in their minds) actually to screw over your best customers. i mean these are the people that are definitely going to pay their bills. if you hike the rates on the riskiest customers you'll see no return as they'll just not pay. if you hike the rates on the most honest ones, you'll get your money.

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ZukeZuke
December 7, 2008 1:18 AM
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I still don't understand the whole concept of how closing your credit cards and managing just a few gives you a lower FICO score.

Seems like having fewer cards makes you a better risk and more financially responsible since you can't just go out this weekend and get yourself into $75-100,000 of CC debt immediately.

The whole thing is counter-intuitive and back asswards to me!

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Mr_D
December 7, 2008 3:38 AM
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@ZukeZuke: You're right, it's counter-intuitive and doesn't make any sense. But it's the way it is.

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Anonymous
December 7, 2008 1:21 AM
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I got one too. I have 3 Citi cards for 3 different purposes (I charge on my Dividend until I get to the cash-back maximum, charge all my airfare on my Premier for the points, etc), and I never keep a balance on any of them. I've loved their online account that lets you set up an automatic payment-in-full from your checking account on the due date. Imagine my surprise to get an increase to 25% I will shop around for a replacement just on principle - I don't love them any longer. Oh, yes, and they raised my limit the next day too.

Maybe I'll call them to complain too. Just to annoy them.

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VencentioCachaco
December 7, 2008 8:25 AM
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Citi has increased my APR and lowered my credit line for no reason this month.

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NormaClotho
December 7, 2008 2:51 PM
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I got one of those Citi letters raising my rate from 3.99% to 16.78%. I pay my balance and card on time and have had this card for over 12 yrs. As someone with good credit and lots of it I chose to call and \"opt out\". They offered no apologies or options and said that my account would be closed when the balance is paid in full.

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Anonymous
December 7, 2008 3:18 PM
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Don't carry a balance anymore regularly (once or twice a year I carry one for two billing cycles), but had the same letter: I'm going to 19% from 13%. My credit score is 720+ so I think they're doing this across the board. What's more disturbing is the ads in the statements (online) and the way they are representing your unbilled activity. Anyone else notice that you have to go through 2 extra steps to see a sum of how much money you've charged that month? Sneaky way to get people to not know their balance. They're really emphasizing the amount since your last billing period -- so if you paid $3000 and only charged $1000, the change shows prominently as -$2000. Yeah right!

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kajillion
December 7, 2008 3:23 PM
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@undefined: If you look that fat with a myspce angled photo either you're so monumentally dumb that you can't get it right, or are so fat that it actually is working.

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cschoen
December 7, 2008 5:33 PM
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I was stunned when I got my notice inthe mail - for a brief second, I even wondered how Citi could be so stupid. Even before the who debacle there were plenty of alternatives to turn to with equal or even lower rates. They get one chance via phone customer service, then it's \"bye bye\"!

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Delhi
December 7, 2008 8:16 PM
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Yep they raised my APR from 9.99 to 21.99 and I am one of those who pay's the amount if full at the end of the billing cycle. I called customer service and fought with the 1st level support who were no help at all. Then I got a supervisor on the line who could get me the next best thing as 10.99% apr which I accepted.

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Mistrez_Mish
December 8, 2008 2:38 AM
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I received one of these rate increase notices from Citi last week... Like many others, I make payments on time... always over the minimum balance, been a customer of Citi for years, etc. My APR was only slightly over 9%, they were going to raise it to 16.99%.

two words: CALL THEM

The conversation started with a brief chat with a guy from an Indian call center, a transfer to an American call center, and the the rep. telling me that I can \"rip up the (notice of change) letter\". They lowered my APR to 8%. (Not a promotional rate, this is my regular rate now - AND they're sending it in writing to me).

If you are smart about your cc' spending and approach the rep in a calm and rational manner, don't be surprised if they will cut you a break.

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Anonymous
December 8, 2008 2:55 AM
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I got that letter and called. I got my % reduced to 12.99 percent and they told me to call back in three months and they could reduce it again. I've been a Citibank holder for 18 years now (since first year of college) and I've rarely been late - I think twice in the 18 years. So don't be afraid to call.

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geekfather
December 8, 2008 1:44 PM
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It's simple math...

Small balance + No late payments + Great credit rating + A letter from Citi saying my rate was going from 6.79% to 14.99 = Closing the account and refusing to do business with Citi ever again.

No matter who buys/sells them.

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paco
December 8, 2008 2:25 PM
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My letter raised me from 11.99% to 16.99%. I called and asked for a rationale. The CSR told me it was a change being applied across the board. I asked what I could do about it, particularly since my rate had just been LOWERED and since I'm working to get out of the CC debt. She said she didn't have an answer for me. Then she added that she'd gotten one of the letters too, and that she wasn't any happier about it than I was.

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Saboth
December 8, 2008 2:37 PM
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I've had a citibank card for 14 years now. I've got close to a 780 credit score. My rate went from 11% (because it's a cash back platinum card) to 19% under their new terms. I called to complain, and the girl on the phone didn't really seem interested in keeping a customer. She told me right off the bat my options were to opt out or cancel my card. I was quite flabbergasted they were willing to toss out a 14 year customer that usually keeps a pretty healthy balance on his card. I said fine, I'll opt out. She said ok, anything else I can do for you today?

Hmm...seems to me losing customers isn't a good way to do business. I really hate to think what this will do to my credit score though...this card has like a 24,000 credit limit and I've had it for 14 years...but damned if I am going to put up with a 20% interest rate like some kind of payday loan person with their first credit card and a $200 limit.

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TheFuzz53
December 8, 2008 2:58 PM
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I got mine 2 weeks ago. My APR is going from 13.99% to Prime + 13.99%, with a minimum of 19.99%.

Good thing I have never paid a cent of interest to Citi, and I get cash back from them. THey must hate me.

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Anonymous
December 8, 2008 3:12 PM
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I received the same letter. I immediately called Citi and explained that I am a customer in good standing (never pay late, always pay balance in full, etc) and that a letter threatening to cancel good customers is ridiculous. I escalated to a manager who not only did not raise my rate, she actually lowered it. Not much of a decrease, but a good gesture none the less.

A few days later a letter came confirming my new rate and that I would not be subject to cancellation upon expiration of my card for opting out of the new terms.


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Russs
December 8, 2008 3:47 PM
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Yep, got my letter. went from 8.99 to 19.99. Called up and asked if I could trade some of my available credit to lower the interest rate back down, they said they already lower my available credit. So I went from a 25k, 8.9% interest rate card to a 7.5k 19.99% card. Thanks Citi for making me shop for a new card.

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Anonymous
December 8, 2008 3:48 PM
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my card went from 8.75 > 18.99. I called and said I was going to close my account and promptly was offered Libor +3% which came out to mid 7%. Yes that's lower then my original rate..

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DraconWolfX
December 8, 2008 5:30 PM
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I got the letter in the mail raising me to 22% from 13.9% and unfortunately I had ~$5,000 on my card. No, it was not $5,000 because of TVs/iPods, it was actually due to emergency situations. Regardless, I called them up and asked for a lower rate -- no budge. So I called up my credit union and asked for a personal loan and was approved the same day.


Thanks Citi, I hope you enjoy your 22% of $0.00.

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catmomma
December 8, 2008 5:43 PM
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I have a very good credit score and have been a Citibank cardholder for 15+ years. Never had a late payment and now they take me from 14% interest to 20%. Also the letter stating this was sent to me AFTER the fact. I usually pay off my account each month but of course right now when they do this rate hike I have 3k floating on my card. I have been a happy customer of theirs for a long time but now that has changed. They now suck in my book

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Anonymous
December 8, 2008 5:53 PM
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I received the letter, and I'm as low-risk as they come:1. I've always paid the entire balance of my credit cards. Not one exception for either of the cards I've held throughout my entire life.2. Never a late payment.3. Credit score is pushing 800.

It's insulting, really.

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Saboth
December 8, 2008 6:45 PM
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Update:

I wrote a nasty email to citibank last monday that never got a reply (not really that bad, just saying they have lost a customer, don't know how to run a company, etc). Today I called up to give them one last chance after I had already opted out. I got a MUCH more helpful/knowledgable CSR. In about 10 minutes, she removed my opt-out, reinstated my card, and not only did I not get the 18.99% rate increase, but my current rate of 11.99 (rewards card) went down to 9.99. So they have finally made me happy.

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uncle moe
December 8, 2008 6:55 PM
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i've got a Citi Driver's Edge card, it worked out great when i had some car repairs and the rebates paid almost half the bill.

now my interest rate goes from 9.99 to 16.99. me and my 810 credit score will be supporting a new card very soon. I'm planning to file the card away and forget that it's in my arsenal once the holiday spending spree gets paid off (before Jan 1). still, it's like being punished for being responsible...i guess that's what this whole economic bailout is about tho, huh? free money for the stupid and incompetant!

i wonder what credit card should replace my citi card now.....

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joos
December 8, 2008 7:10 PM
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Got this letter too...my rate was to change from 9.99 to 23.99...called and asked some questions, they said if I changed card type (to a \"Citi rewards\" card), they could keep me at 9.99%


The rep told me that whether your rate changed had NOTHING to do with your individual profile, but rather they type of card you had

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Anonymous
December 8, 2008 7:32 PM
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Got this letter, and spent some time on the phone trying to haggle with no success. Been with them for 5 years with great credit score and a very small balance. They didn't even seem like they were interested in keeping me on as a customer, so I took the hint and opted out. I already moved the balance away, and will be cashing in my rewards points for a new camera.

I would have loved to keep this card around, but apparently their aim is to get rid of people who actually pay their bills on time. Mission accomplished.

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SugarMag
December 8, 2008 7:34 PM
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I keep waiting for the axe...but none so far.


Rec'd a recent letter stating the APR increase - but ONLY if I DEFAULT. I called to verify I was reading the letter correctly, which I was. It is not an interest hike letter (yet). Haven't received a lower limit either. (i know this can all change on a dime, I'm just shocked I'm not getting a raw deal)


Also received a credit increase last week. Regardless, the talk of Citi and these random hikes made me finally apply for another card - opened a Discover at a much better rate. I was surprised it was so easy to do with all the credit clamp down. I'm not feelin' the love from Citi after 20 years...so I'm glad I have a back up card with better rate and rewards in case I get scrwed too.

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mpaquette
December 8, 2008 7:56 PM
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Received my letter last week. My rate is going from 7.99 to 14.99 (prime + 8.99). I've had the card for a few years, I do carry a balance, but always pay on time and pay way more than the minimum. Anyway, I called Citi-crooks today and they verified that my new and improved interest rate would apply to new purchases AND my current balance. Credit score be damned, I opted out and will keep my 7.99 rate until I pay this thing off. Thanks for the nice kick in the balls, Citi. Oh, and you're welcome for the bailout too. Is there anything else I can give you?

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BrianDaBrain
December 8, 2008 8:56 PM
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Epic screwage. I have long been a Citibank customer, and a loyal one at that. Up until last week, I had a great interest rate, I carry a very small balance on the rare occasion that I carry one, and I am never late nor do I spend over my limit. Yet, my interest rate jumped 15 points! I'm keeping the card because it currently doesn't have a balance and I like its positive effect on my credit score, but make no mistake, I won't be carrying a balance on it. The hell if they're going to make any money off me with practices like this.

Yet another reason the stupid bailout packages should NEVER have passed. First AIG, now Citi, then add that to the general air that banks have that they would rather hoard the money we the taxpayers are giving them rather than push it back out into the economy. They're too shortsighted to see that in the long term, people not spending any money is a really bad thing for them. They think that they can fleece the people who are carrying balances right now and just weather the coming storm. They'll find themselves to be sadly wrong when the time comes.

Of course, most of this disaster could have been prevented had people (namely big corporations and their CEOs) had some measure of foresight. But that's another topic for another day.

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Anonymous
December 8, 2008 11:58 PM
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I received the same letter. The rate was going from 11.99% to 18.99% on my Dividends Platinum card. My FICO is around 720. I pay the balance off in full every month with no late payments except once when I moved to a new address and missed the statement for that month. After receiving the letter, I called and asked them nicely to reduce the rate as I felt this increase was unwarranted. Not only did they lower the rate to 10.99%, they also increased my credit limit (after I asked for it). Citi is a business. They are going to do what it takes to make a profit (or in this case survive). I don't think it does any good to get angry about this poor business decision. If you have managed your finances in a responsible manner, you are most likely in a position to negotiate for better terms, or take your business elsewhere. But if you've been financially irresponsible and painted yourself in a corner, then well, you need to be more responsbile. When all is said and done, Citi will lose all it's good credit customers and get stuck with junk credit customers. Yes, you might feel like you are wasting valuable time negotiating better terms, but you also have the choice of eliminating credit card hassles by paying cash for everything.

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Kimaroo - 100% Pure Natural Kitteh
December 9, 2008 5:48 AM
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I don't have a Citi card, but I got a shockingly similar letter from a local credit union who I have a card with.. and just to make sure it wasn't just me, I asked my mom if she got the same letter because I knew she had a card with them too.. and she did. They raised my rate by a little over 50%.. The letter had the same stipulation that if I rejected the new terms then I would have to close my account. Oddly enough they also included that I would be soon recieving a **NEW** Platinum card in exchange for my **old** gold one... Weird.


Thankfully I had a smaller/older card with a different credit union, and after I recieved that news I applied to increase my limit with them, they approved it and now I'm in the process of a balance transfer.


I'm shocked that a credit union would share the same scummy practices as a company like Citi.. but I won't be spending any more money on them in the future.

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Anonymous
December 10, 2008 1:38 AM
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Once thing was incorrect in this if you opt out you don't have to close your account. You will need to close it on your card expiration date. I've been a citi customer for a long time, great credit and do carry a balance. Got the notice and they wanted to jack my rate to LIBOR plus 11.99, I'm currently at LIBOR plus 5.49. When I called I basically told the gal opt me out and I want my comfirmation letter. Citi has lost all of my business in the future and more press should be made of this unfair tactic. They should be ashamed. Maybe they will show up to DC in a Bentley and ask for their \"fair share\" of taxpaper dollars as well.

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burnt_orange98
December 17, 2008 1:27 AM
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I got the letter saying my rate would go from 9.99% to 14.99% (Prime+10.99%). It took me 3 tries to get my rate changed back.

I spoke to the 1st CSR and Supervisor, neither was able able to help and had no offers. The second time I called, the CSR was useless, and all the supervisor would do was lower the rate to 11.99% (Prime+7.99%), which would still be a 2% increase. The third call resulted in the CSR doing nothing, but the Supervisor was able to offer my old 9.99% rate (Prime+5.99%) which I reluctantly accepted.

Instead of going through all of this hassle, I recommend getting a USAA Rewards credit card where you can get a rate as low as 5.75% (Prime+1.75%) and way better Customer Service.

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Anonymous
January 26, 2009 2:52 PM
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I would ask the President to call me before he gives any money to Citibank, they are and practice unethical business. Their lawyers lied to the Department of Fair Employment and Housing, wrongfully terminated me while out on workers comp and all because I wanted to put my daughter first. Now Citibank ask for bail out money from our government yet when I wrote to over 200 senators and government people I got no help. They broke California labor codes in the process of firing me, while I was ill. My attorney made over 200,000.00 and checks were sent out to about 2000 people. They want your help but no one would help me and all though they wrongfully terminated. There is greed at Citibank and they knowingly gave mortgages to people who didn't qualify by pumping up their income and now they want my tax dollars. My attorney said firing me cost them about 3.5 million and I don't feel they should get or deserve the bail out money. My story is on line, and President Bush's office never did reply and the people that did just kept passing the buck. Fell free to call me for more details 831-236-0112, or look at the case filed in Monterey Superior court. I lost everything because of them, bad manager Jeff Ursino and they didn't even follow their own firing policy, fired via UPS by Citibank. My husband voted for you and had I voted I would have voted for you. I didn't vote because when I tried to get help from people I had voted for no one helped, they say to write your congressman for help and they don't help you, but Citibank asks for bail out money and they get help. where is the justice, what about me, Jeff the plumbers wife? Citibank made the list of the best 100 companies for working mothers to work at, yet they fired me for putting my daughter's needs first! Where is the justice? Why should we bail them out? I prayed for you all day and watched on my TV, stunning, we are truly blessed to have you. My favorite photo/moment is the thumbs up by your beautiful daughter, which I am sure you also put her needs first. Thanks for caring about our country, God Bless you and your family, may he keep you safe and happy.

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Anonymous
February 2, 2009 8:56 PM
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Me, my wife and my best friend all received these letters within days of each other. I don't recall my wife or friend's rate changes, but my increase was close to triple my original rate and I have never missed or been late on a payment, though I do currently carry a balance of around $4500, which is probably why I got screwed especially bad by them (more interest income since I carry a balance). We also have a mortgage with them. We plan on refinancing our mortgage with another lender as we don't care to give them any more of our money after screwing over good customers. This is something I would never have dreamed of doing to customers if I were running a bank, especially at a time when so many customers are just barely making ends meet. Citibank should be ashamed of themselves for doing this, especially after taking TARP money from our tax dollars. It's shameful.

The 20 or so people I've talked to that this has happened to have all elected to opt out and therefor close their account with CItibank and we are all vowing never to do business with them again if we can help it.

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