Citibank tells cardholders to take a hike
(Thanks to BT for the photoshop.)
Terrific: Bailouts for Citibank, rate hikes for their cardholders.
Reader Elizabeth e-mails:
Dear Michelle,
I have been a Citibank cardholder since 2002. I have a better than average credit score and a perfect payment history with Citibank. My current APR on my Citibank credit card is 7.99%. Yesterday, the same day I find out Citibank is receiving $25 billion in bailout cash from our tax dollars, I received a notice with my billing statement stating my APR would nearly double to 14.99%. The notice also said I would be given the chance to opt out of the rate increase and keep my current rate until my card expires, at which point my account would be closed, and I could pay off the balance at my current rate. When I called to opt out, a Citibank representative assured me that I did not have any problems with my account that would have prompted a rate increase and read me a canned message about the “current economic crisis” and how Citibank would otherwise be “unable to keep its doors open” if it doesn’t increase its cost of extending credit. It is my understanding that last week, Citibank told the Wall Street Journal it would be raising APR rates 3% on average and the rate increase would affect about 20% of Citibank cardholders. Sure. My fiance also received the same notice despite his high credit score. When he called Citibank, he was given the same canned speech.
A blogger who had the same experience is calling Citibank out.
Found on Michelle Malkin’s Blog.
I had a card with 25,000 limit. They reduced my limit to 100 bucks for non-use. I have been a member since 1994. I have not made a late payment, ever. I make a good salary as an attorney (read after working three jobs at a time to put myself though college, grad school and law school). I have a high credit score. Is there not a parable in the Bible about the manager who got grace from the king for a big debt, who in turn, instead of showing compassion to his own servant, demanded immediate payment of a much much smaller debt himself? I believe in the end the Manager (Citi?) got his. What kind of an America do we live in where the King rips off the servant too and then gives the Manager more money – the servant’s money and the servant’s kid’s money?
Same thing happened to me after I got a letter saying they were going to cancel my card for non use.I used irt rarerly and paid off my balance in full each month. So I started using the card again for fear that my credit rating would be comprimised by letting them cancelling it for non use. I found out that doesn’t fly as far as the credit bureus go so I ‘m letting the card die a natural death.