UPDATE: Please see Citibank Interest Rate Increase Solutions for detailed information on the most recent rate increase.
A few weeks ago, I wrote an article about Citibank raising credit card interest rateson a small number of store issued credit cards. At the time, Citi had been generating very few negative comments from readers and it appeared as if Citi was shaping up to be one of the best behaved credit card companies. I was proved very wrong, as CitiBank has substantially raised interest rates on an apparently large base of customers to as much as 29.99%.
Here is a rather colorful comment left by a visitor whose interest rate was substantially raised by Citibank:
“My citi (sic) card, which I have had for probably years and hav (sic) never made a late payment, decided they wanted to raise my APR fro 14.99% (which is still high ) to 29.99%. I could understand if I late on my payments or not making payments at all. Then to top it off when I called the “customer service” witch was very rude and I felt like I was being told ____ off by her! I am so angry that this is happening and I can see that I’m not the only one…”
Prior to the credit crisis, it generally took a missed payment, bounced check, or over-the-limit transaction to trigger an interest rate increase to 29.99%. According to many people who’ve written in about recent Citibank interest rate increases, they did nothing to trigger the rate increase.
For a person with a $5,000 balance on a Citibank credit card that previously had a 14.99% interest rate, a 29.99% rate will cost them close to $900 more in interest during the course of a year.
Ultimately, if Citi is unwilling to budge on a recent interest rate increase, the best more is to either pay your card off or transfer your balance to a new credit card that offers a 0% rate and a lower long term interest rate.
You can review, compare, and apply online for a new credit card in the 0% credit card section of this website. Many of these card offer 0% rates on balance transfers as well as significantly lower long term interest rates.
Lastly, if you have had any luck dealing with a Citibank credit card interest rate increase, please share with our visitors.
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July 22nd, 2009 at 8:20 pm
July 22, 2009
I just received a notice that my Citi Card was increasing my APR from 15.9% to 29% effective August 1, 2009.
I have an outstanding balance of $3,800.00 with a credit limit of $10,000. No missed payments on anything EVER, all my unsecured credit is at less than 50% of my limits, and my FICO just updated yesterday was still 839, Esperian.
I guess the F__K you and thanks for the bailout is Citi’s way of thanking the US taxpayers.
Your local Congressman should be contacted. Scan your bill/increase notice, FICO and tell him/her that it’s time to pull the plug on any additional bailout monies for Citi via our tax dollars!
Mike
Huntington Beach, CA
July 23rd, 2009 at 8:58 am
[...] Citibank Raises Interest Rates A Lot [...]
July 28th, 2009 at 11:55 am
I just contacted Senator Diane Feinstein, my CA senator. I hope Citibank fries in hell.
September 11th, 2009 at 10:20 am
I was shocked and dismayed when I looked at my statement online to see that Citibank raised my interest rate from 7.99% to 14.99% to 29.99%. They did not even notify me that they were again raising my interest rate to 29.99%. I called Citibank on September 10, 2009 and I was told there was nothing they could do and they blamed it on new laws. We all know that a credit card company has the power to reduce interest rates. I spoke to a senior manager at Citibank and she said she could reduce my rate to 21.99% and that was the best she could do. I kept asking her to please reduce my rate or reduce my minimum payment and she said no. What happened to customer loyalty?
Please understand that I have been a loyal Citibank customer for about 20 years and they did not even care if they lost me as a customer. Not only that, I never had a late payment and always made double payments on time. I told them this and again, they did not care. It left me no choice but to opt out and close the credit card which will bring my interest rate back down to 14.99% but they are now going to close my account. I could not afford the mortgage sized minimum payment of $800.00 a month. That is ludicrous.
What they are doing is unethical and represents poor customer loyalty and customer service. I believe that we need to send a message that doing this to their loyal and good customers that this is not acceptable. I would ask that each Citibank member check their interest rate as I was shocked to see mine went up so high without any notice of it, which I believe is against the law. The woman I spoke with said that they were losing a lot of customers and I believe that all Citibank members should close their accounts and send the message that we are not going to take these “loan shark” tactics.
September 24th, 2009 at 8:13 pm
I just had the same experience with Citibank. Last November, they attempted to raise my interest rate from 9% to 21. I was going to take the opt out, let them cancel my card and pay off my balance. When I called back, they offered me a different type of credit card in which I could keep my 9.4 interest rate. Now, again, they have raised my interest rate to 29.99%. I called, spoke to a supervisor, she apologized and said that she could only reduce it to 22% or I could opt out and they would cancel my account immediately and return my interest rate to 9.4%. That’s great, except it will annilate my FICO score and I need to purchase a new car in April when my lease runs out. I can’t believe that the cash advance interest rate is lower than the purchase interest rate. Like the others, my payments are never late, they are always more than the minimum. I am angry. my only option is to transfer my balance over to my MBNA/BOA credit card. I fear that they will do the exact same thing. Now I am taking a second job so I can pay off all of my debt. Screw the credit card companies!
October 12th, 2009 at 5:01 pm
I went to pay my bill today and found myself in exactly the same situation. I also never saw the rate increase notice in the mail so my option to opt out had expired. I called and talked to three levels of customer service and demanded to be placed in the opt out program. Just keep asking for the supervisor, which even then didnt help me. I spoke to the supervisors manager and after much persistence they allowed me to close my account at the original 6% interest rate. Their 30% apr is such a scam. The 22% option was such a joke still! Dont take their no’s for a answer, remember you are paying money to them, they should work for you!
October 13th, 2009 at 11:50 am
Its good to hear that persistence still pays off. Many people give up too early when dealing with these issues and end up paying hefty prices. I hope more people have the luck you do.
October 13th, 2009 at 12:11 pm
[...] Balance Transfers Helper: Its good to hear that persistence still pays off. Many people give up too early when dealing with these issues and end up paying hefty prices. I hope more people have the luck you do. [...]
October 16th, 2009 at 2:16 pm
I too just received notice from Citibank that my rate was going up to 29.99%. I have been with them since 1994. I hadn’t made a late payment or over the credit limit boo boo. I always have made payments on time. I too was told due to the new laws. There is something wrong with our banking industry when they get help from the government from our tax dollars and then they turn around and screw us the loyal consumer and customer. Citibank has turned into the modern day “loan shark” company. I too must opt out. I am not able to afford the new payment as it would stretch me too thin! No wonder foreclosures are still rising! Hello government, when are you going to start helping out the little people instead of the banking industry who is hurting the little people?
October 16th, 2009 at 6:58 pm
I just got my letter today and immediately called and opted out of this utter failure in business and customer service. They could care less to lose a customer of 17 years. Heck, they gave me my first credit card when I was 18; I’ve only been more loyal to my wife. I have made a good chunk of change on their miserable stock lately… it’s time to sell all of my Citibank stock and stop using this credit card for good. Whatever they are trying to do can be nothing less than pure evil.
October 16th, 2009 at 11:16 pm
We recently had our rate jump from 7.99 to 14.99 all the way to 29.40% 0n a balance of $20,000.00 plus. CitiBank gave me screw you attitude saying you were late , I was late by 6 hours , the first time I was late in over 7 plus years. They have jumped my minimum so high that they are forcing me into a corner. When I chose who gets paid and who does not I can assure you they will be at the very bottom and Bank of America is no better. I am ready to beat the crap out of someone. When I get out of this mess and I will, I will never use another card again. People quit supporting these vampires. I will right the most hateful message on every offer they send to me and waste there postage in the process. Get out of debt America do not be a slave anymore. God Bless!
October 16th, 2009 at 11:47 pm
I received the same 29.99% interest rate increase today and was shocked, to say the least. I have been a loyal customer for nearly 20 years, never missed a payment, never maxed out my account which has a 27,000+ limit, always pay at least twice what was due, and recently paid down my account balance to less than 100.00. And still I get a rate increase; this just doesn’t make sound business sense. If those of us who are “good” customers are getting treated this way imagine how they are treating “bad” customers. I must admit when I called the company they received both “barrels” full of my anger but it didn’t seem to faze them. Their excuse of “due to economic times” we need to increase your rate BS just caused more anger. Let me remind you not only do credit card companies receive income from these outrageous interest rates they also receive income from the numerous fees that they charge. An example of a fee we don’t often think about is the merchandise transaction fee, for every purchase we make the retailer is charge a processing fee for the “privilege” of doing a credit card transaction. The consumer ends up paying for all the fees that the retailer is charge through higher prices.
This is America; I am not opposed to a business making profit this practice just goes to far. Citibank/Citigroup’s practices, as well as others, are the reason we are in the economic crisis we are in today. They received millions of dollars in “bail-out” money from the tax payer, pay out huge “retention” bonuses and have the nerve to raise our interest rates. I say it is time to send them a message loud and clear WE ARE NOT GOING TO TAKE IT ANYMORE!!!! We all need to contact the media, our state and local government official and friends and get the word out about these “SHYSTERS”. I have used my Citibank card for the last time I challenge all of you to do the same.
October 17th, 2009 at 10:48 am
I just got the “[very funny Expletive Deleted]” mail today stating they were inexplicably raising my rate to 29.99%. To say I am seething and livid, is an understatement because this will effective double my payments though this is not due to non-payment, late payments or anything of that nature. I cannot believe they treat customers in such a manner and many of my other cards are underwritten by these MoFos. They were the best rate card I had but at this point, I almost have to opt out to keep my current rate, RIDICULOUS. Gotta love American companies screwing their customers and then they wonder why things are so bad?
October 17th, 2009 at 11:46 am
I also received then notification that my citi card apr has been raised from 9.9% to 29.99%. I have had the card for 15+ years, have a credit limit of $25k, and have never had a late payment ever. When I called to discuss this, the rep said the best they could do was 22.9%… Unfortunately, I cancelled the card and went with Chase who gave me 9.9% for one year.
Why do this to customers with an excellent credit history when the bank’s performance is in such turmoil? Very poor decision to chase away good customers in an environment where many people may be forced to miss payments or default due to unemployment or reduced earnings.
October 17th, 2009 at 4:33 pm
I have recently received the same notice. You can offset this increase by 1) pay the bill on time and ask for 10% of your Finance charges (this will be credited to your account after two months from the day your new 29.99% rate takes effect) 2) I would call Citi and try to enroll in there partner program which could give you additional 10% of the financial charges for at least the next 8 months ( this will be credited to your account at the end of 8 months, up to $550)
I feel the pain, we have bail them out and they turn into Mafia like banking system.
I thank you mister president OBAMA and in order for me to pay this account, I am in need of some change.
October 17th, 2009 at 5:54 pm
Just got a notice today that my rate would be increasing to 29.99%!! I had called 2 month ago to complain about them raising my 7.9% to 13.99. At that time they gave me a 5.9% rate for 9 month, then it was going to be bumped to the 13.9%. The Account Manager I spoke with today, gave me the typical “with the economy and bail out….” speech. I ended up opting out. Luckily my card was just renewed so I have until 10/11 before my card is closed. I’ve had the card since 1998 and they didn’t even blink when I told them to opt out and close the card. I have great credit, am never late, always pay more than the minimums, and I’m not close to my credit limit. It really seems as if the responsible customers are the ones taking the brunt of this deal.
October 18th, 2009 at 2:05 pm
Received my rate increase notice from Citi yesterday moving my rat 14 to 29.99. I am a 20 year customer with a perfect payment history , high FICO, etc. CITI doesn’t care..people who pay their balances are deadbeats in their mind. And we bailed this kind of company out? I am opting out and won’t be back. Bye bye Citi…
October 19th, 2009 at 8:53 am
Ace,
Opting out is clearly the smartest move available. However, I suggest that everyone who opts out immediately apply for a new credit card from a different bank, as closing an account can have a large, negative impact on credit scores as it reduces your available credit and makes consumers appear to be “maxed out.”
To compare other credit card offers, please see the 0% APR credit card comparison section of this website.
October 19th, 2009 at 8:55 am
Rhonda,
To keep your credit score in excellent shape, strongly consider opening a new credit card so that your credit utilization ratio (the amount of available credit you are using) remains low. Closing a credit card can really damage your credit score-but anyone who has a balance of more than a few hundred dollars MUST OPT OUT!
October 19th, 2009 at 8:56 am
VB,
You’re best option is to OPT OUT. This leaves your rate at the current level. Do not waste your time and money with these 3 card monte options.
October 19th, 2009 at 8:58 am
Dana,
Please opt out. Open a new credit card account with a 0% introductory rate from a different company so you have access to credit and your score isn’t damaged by the account closure. But please OPT OUT!
October 19th, 2009 at 9:00 am
Dorothy,
I am happy to hear your balance is only $100. I think you should leave your account open, as this will help your credit score, and just stop using it. I hope to hear more from others in your situation who can afford to keep the account open instead of being forced to close it because the interest expenses are too high, although I wish I wasn’t getting any of these comments.
October 19th, 2009 at 9:05 am
Chris,
I recently heard from a customer who, by calling over and over again and asking for the supervisor of the supervisor, was able to get their rate reduced. I suggest you try this strategy. If it takes ten calls to get your rate down, its the best ten calls you’ll make in your life. This will save you thousands in interest. If you cannot work out a deal and do not have the cash on hand to repay your balance, I think you might benefit from a credit counseling service. These are not the ones you hear on the radio offering to cut your debt in half. These are very legitimate companies that work with credit card issuers to get rates reduced very low, often 10% or less.
I recommend the website http://www.nfcc.org, which allows you to search for qualified, legitimate credit counselors.
I am truly sorry to hear of your predicament and hope you can find a solution that can help you get out of debt faster and at fair rates.
October 19th, 2009 at 9:16 am
Rusell,
To help keep your credit score from taking a hit after opting out, I strongly recommend opening up a new credit card to increase your available credit. This will prevent your credit utilization ratio from going up, which can have a huge negative impact on your credit score. A good free trial of a credit score estimating service can be had at Identity Guard. You can estimate the effects the closure will have on your score and how opening a new credit card account can help mitigate the damage.
October 19th, 2009 at 9:17 am
Debbie,
By all means OPT OUT. As I noted above, you may want to open a new credit card account to prevent your credit score from dropping however.
October 19th, 2009 at 12:42 pm
Got the same notice from CITI today that my card is going from 15% to 29.99%. I have a high balance (15k) and OPTED out immediatly so my minimum payment doesnt go through the roof.
October 19th, 2009 at 2:55 pm
I just got the letter on Saturday that they were raising my interest rate to 29.00% on November 30. I have paid on time since I received the card more than seven years ago. I called and asked if they were raising MY interest rate or everyone’s, and the rep said they were doing it to everyone. She also told me other credit card companies would be doing the same (but she refused to mention names). I asked her how Citibank expected to stay in business since most likely everyone would cancel their cards due to the high rate, and she responded that surprisingly very few people were canceling their accounts. Well…for all of us who do have good credit, I advise that we ALL close our accounts with Citibank (credit card and banking). Send the message that we will not support companies with such gross business practices. They do not deserve our business.
October 19th, 2009 at 3:24 pm
I received my letter on Friday, Oct. 19.
I too was shocked to see that my Citicard Mastercard was being raised to 29.99% from 13.24%.
I have been a Citicard customer for years and liked it for the American Airline miles earned.
I have never missed a payment and never gone over my balance. How can they get away with this.
I called and was told by a supervisor that it was due to the “economic times.”
Wont this make the “economic times” be worse for people like me?
October 19th, 2009 at 4:11 pm
Because of the huge number of new complaints, I posted a new article laying out options for those of you who have been victimized by Citibank interest rate increases.
Please leave comments on that article so we can work together to share solutions to this growing problem.
October 19th, 2009 at 4:50 pm
Same letter for me too, raising my rate on a substantial balance from 6.9% to 29.99%. I spoke to customer service and explained that I had been a great customer, never paid late, never missed payments, never went over my credit limit. In short, I’m the kind of customer who won’t screw the credit card company by failing to pay, and would be a profitable customer at 6.9%.
His reponse was basically that I could either close the account (which is a crappy mark on my credit), or start paying 29.99%.
This is outrageous. Those ***** at Citibank take our tax money as a bailout, then turn around and screw us again. A double whammy.
I have never, ever be shown such disrespect from a company. I will be closing my account by paying off the balance in full with funds I’ll scrape up from somewhere. I’ll be damned if Citibank makes another cent off me as a customer.
October 19th, 2009 at 5:01 pm
I got the same 29.99% letter. I only went 1 round with customer service but I guess I was wrong thinkin 15 years of loyalty and a perfect payment history would mean something. I opted out. It is amazing to me that anyone would stay in. The same day I got an offer from Wachovia for 13.99% (long term). Crazy
October 19th, 2009 at 5:59 pm
Citi is free to charge each and every one of us the maximum interest rate allowed by law. If we don’t care for that, we have the option to allow the card to expire while continuing to pay at our previous rate. The lesson many people need to understand is that Citi (and banks in general) are businesses trying to operate at a profit. They will act in a manner consistent with their own self-interest. Their ‘loyalty’ is only to the business, not to any customer of that business. Unfortunately, many people believe that their having been loyal customers for years and years should count for something. It does not. So opt out and make sure Citi never sees another dime of your money. The next time they try to reel you in, remind them of what they did to you, and the fact that they do not deserve your business.
October 19th, 2009 at 7:29 pm
I also received a letter in the mail stating that
my interest rate would be going up to 29.99, I plan on
paying in down by the 30th of Nov., and kept it but
will not use it like I have in the pass. Taxpayers
bail them out thru government TARP funds then punish
their customers, what’s the old saying “what comes around goes around”, it will back fire in the long
run. Bankers are just thieves wear suits..
October 19th, 2009 at 8:21 pm
I, like many of the people who have already posted, just received my letter telling me that my APR is going to be 29.99%. And just like everyone else, I have been with Citi for a few years and have never been late on a payment. I don’t know if there are any words to describe my reaction, other than absolutely disgusted. When I called the 800 number, the person was rude and told me that the reason for the increase wasn’t because of payment history or credit, it was solely due to the “economic” conditions of the company. Who’s fault is that? And didn’t we just bail their butts out? We, the TAX PAYING citizens of this country, bailed them out. We, the consumer, need to pull the plug on these corporations. We do that by NOT doing business with them. Transfer your balances, close any and all accounts, and tell them thanks but no thanks!
October 19th, 2009 at 8:51 pm
Hello Friends Out There,
After citibank dumped a rate increase back in April of 2009 from 9% to 14%, I received a notice in the mail today that my interest rate of 14% will now be increased to 29.9%, increasing my minimum payment ~$200/month. Unfortunately, I do not have the funds currently to pay off the balance, and I have a couple of other cards but their limits smaller and less than what I owe on the citicard. After talking to a customer service rep about lowering my interest rate or keeping it where it was and then to someone about a payment plan, I was told they could put me into a debt relief program that would take the balance at a lower interest rate or not interest rate if paid off over 60 months. I was also told that I could reopen my card after a period of time if desired, but it would be at the 29.99% rate with this program. I was told to call back in 2 days for the program details though because “my account is in excellent standing and my account is not a first line priority because it is not late, not overdue, etc.” I am tempted to do this, but really worried how it will effect my credit score (which is not excellent, but good). The citibank rep told me this should “be a neutral” on my credit score because it is closed by me and I am still taking responsibility for the balance. I am not really sure what to do……any thoughts? I guess my other option is to opt out, because my card doesn’t expire until 4/2010 and try to pay off the balance as much as possible and then decide to un-opt out in March 2010? Would that work? It’d be nice to turn the tables on them if I could…..plus, if that would work, by that time Obama’s credit plan of “interest rates cannot be increased on previous balances” so I wonder if I could somehow incorporate that? It burns me that Citibank is trying to raise the interest rates as high as possible before this new plan is put underway. UGH!
October 19th, 2009 at 9:27 pm
So let me understand this: Citibank receives $300+ Billion in taxpayer money as a “bail out” for their own ineptitude, then decide to increase the majority of their customers’ interest payments to 29.99%? And conveniently, in advance of a new law that would prohibit such action?
Like others, I too received the joyous letter from Citibank. After 22 years of on-time payments and being a good customer, I guess it was time to tell me to take a hike.
October 20th, 2009 at 12:14 am
I too received my 29.99 interest hike. Been with these crooks for 10+ years and have been in good standards.
Well, I guess not no more. Will try and call and see if they can help. If not, I will opt out and look to get these funds transferred. The hell with these crooks.
October 20th, 2009 at 6:39 am
I have been a “member” since 1982. My interest rate was already 19.99 and I paid them $100 in interest last month alone. I have been thinking about just getting rid of this card since I have a great credit score. I also got the letter raising me to 29.99%. When I called to opt out and asked why they were doing this, I was told the want to maintain the high level of customer service they have always provided to people in the Citibank “family.” My response, to my “family member” who clearly resides in India, was “is this any way to treat your family??” He told me he recently had his rate raised to 29% also and he had to close his account too. It was actually slightly humorous. I am also going to refinance and get rid of my Citi Mortgage. Screw them!!
October 20th, 2009 at 6:55 am
I too received that wonderful notice yesterday. Unlike most folks, I do not carry a balance and haven’t for over 5 years. I’ve been with Citi for over 24 years and have been late twice in the timeframe and over limit once. For me, this is insulting but currently will not greatly affect me as I don’t pay interest charges but I feel for everyone who is not in that situation. I had a feeling something like this was coming but didn’t beleive that Citi would go THIS far. 29.99% is beyond ridiculous. Especially in today’s financial environment where the financial institutions have made credit critical to doing anything, from buying a car to getting a security clearance. And then BAM, they change the rules of the game that they created. Nice, very nice. And what I love the most about this game is where was Citi 10 years ago when they were pulling in RECORD profits? Did our interest rates and fees go down? Nope.
Good luck to those who are being hurt by this.
October 20th, 2009 at 7:03 am
Rate was: 0% teaser 2008 jumped to: 14.99% Nov 19 09 jumps to 29.99% NEVER BEEN LATE! LOYAL CUSTOMER! This company is blaming everyone else for their troubles, including the loyal customers who used their card to build their credit history. Without us, they’d be nothing. Opt out of this horrible program. Transfer away from CITI and let them see their numbers drop and the loyalty disappear. I don’t trust my money or my future credit with these people and plan on paying off the current balance and then- GOODBYE!!
October 20th, 2009 at 11:00 am
I received the same notice in the mail from Citibank on October 19. I couldn’t believe it. They are doubling my interest rate, raising it from from 15.42% to 29.99%. I have been a Citibank card holder for over eight years, have never made a late payment, and have an FICO score in the excellent range. I called to find out what was going on and they said the increase was across the board. This makes no sense, both good and bad customers are penalized. They said this was something they had to do for business. I don’t believe it. Why aren’t the credit unions facing the same issue. Their rates have remained steadily low.
October 20th, 2009 at 11:01 am
That’s the way to fight back-take your business elsewhere. You should also consider using a 0% balance transfer to get your credit card balance-and interest payments-away from the people at Citi.
October 20th, 2009 at 11:11 am
You are very right to point out that many people have loyal to their banks and credit card companies, only to find out that they are nothing more than a revenue source. It is truly a shame that customer loyalty is worth nothing in the eyes of our too big to fail institutions.
October 20th, 2009 at 12:37 pm
I had 2 credit cards form Citibank. I had been their customer for many years – never ever made a late payment or overcharged any of the accounts. I had the promotional rate on one of the accounts 1.99% until paid off, and 3.99% on the other one. Yesterday I received account changes notification for both accounts, raising them to 29.99%!!! I called them right away to opt out, and closed both accounts to keep my low APR. They closed both without any question or hesitation – did not care at all about loosing a customer. Hey, they are making money on the customers who don’t pay on time, overcharge the accounts, and have high APR already. They do not care about the ones that always pay on time, and I guess they don’t make enough money on the low percentage on such accounts. I have very little hope that someone will put the stop on the current, greedy practices of many credit card companies. I do hope they many of them will fail anyway, and one beautiful morning I open a newspaper, and I will see the news headline “Citibank Bankrupt…”. Anyway I don’t miss my Citibank credit cards…
October 20th, 2009 at 12:39 pm
I received the noticed of the rate increase from 11% to LIBOR + 29.99%…I could not believe this. I thought the Credit Card Act of May 2009 was supposed to address these types of rate hikes AND protect consumers. This is outrageous!! I’ve been a loyal customer for over 18 years. I spoke to a Citi rep and was told that there were doing everything under the law and that could simply opt-out. Unfortunately, this is a not a good option for me since I want to preserve the credit history. Instead, I opted to transfer my entire balance to Capital One who approved me right away and gave me a 0% interest until 9/2010. I encourage people to do the same.
October 20th, 2009 at 1:51 pm
Well I got the letter stating that I was going from 18.9% to 29.9% or I could opt out. I had just gone from 9.4% to 18.9% less than a year ago because of the economic climate. The rep today said that maybe in the future I can be a customer again when their rates are more agreeable. She said since I have an excellent payment record with them, that I should reconsider. Well screw that. I opted out.
October 20th, 2009 at 2:08 pm
Doing a 0% balance transfer is a great idea, and one that many wouldn’t have considered were it not for these outrageous rate increases. However, if you choose to do a balance transfer, make sure you are granted a large enough credit limit to cover your outstanding balance. Many people with large amounts of credit card debt may not be able to fit their balances onto a single card. 99% of the time, you won’t know your credit limit until the card arrives in the mail, so be sure to act quickly so there is still time to opt out if you can’t do a balance transfer.
October 20th, 2009 at 2:31 pm
Here’s what you do if you have a citi rewards card. I have a Citi Platinum Dividend select. Do whatever you possibly can to reduce the debt you have on your card. I have been carrying a balance for as long as i remember, paid over 600 in interest over the past year. Thankfully I started getting rid of the debt and my balance will soon be zero (have another $200 to go). Make all of your purchases that you would normally pay for with cash, then pay off your balance in full every month. Not only will you not incur finance charges, but you’ll actually be getting something in return (between 1-5% of purchases). For once the credit card company will have to pay you…
October 20th, 2009 at 2:56 pm
I don’t understand how Citibank’s management and board could be so short-sighted on this issue. I had been very happy with this company for the past 8 years, and I’m only 30 years old. So now they’ve lost a customer in me for the next 50 or 60 years (God willing!).
I know that the only customers they’ll end up keeping are those who have no choice but to use credit at 30% APR, and will end up defaulting on their debt. Good luck with that.
October 20th, 2009 at 4:48 pm
For more information on the current rate hike, please see the article Citibank Interest Rate Increase Solutions posted specifically about the absurd rate increase Citi is trying to gouge its customers with.
October 21st, 2009 at 11:14 am
I too received the outrageous 29.99% bump. I remained calm but my wife totally lost it and blasted the “customer service” rep with both barrels. I said screw it – I’ll opt out and take the FICO hit rather than pay that kind of loan shark interest. Then this morning I received an email asking me to take a customer service survey for Citibank. I blasted them. It does no good, but made me feel better.
October 21st, 2009 at 4:18 pm
Got one 29.99% letter on Monday and one on Tuesday.
Citi actually cut my credit limit in half – BEFORE I even opted out. Ready for my credit score to tank.
Reason? Same song and dance… “economic climate” I’ll bet the kids they have answering the phones have no idea what that meant before this week.
The rep told me that they are seeing a high number of collections and that they have to recoup that from somehwere. He also told me that no one should have a mortgage in this day and age… WHAT!?!?!
October 22nd, 2009 at 11:38 am
Kochos,
Its really annoying to pick up the phone and talk to someone across the world or barely old enough to vote when you’re trying to deal with major financial issues. Now you’ve found the Oracle of Citibank who apparently thinks having a 5% mortgage is a bad idea and 29.99% credit card is completely reasonable. What!?!? is a question I ask myslef all the time.
October 22nd, 2009 at 6:50 pm
I just got my kiss my FU letter from Citibank. I could not believe my eyes. This had to be a mistake. I have been a loyal Citibank customer for over 20 years. I was never late and I even pay more than my minimal balance. In fact, I usually pay 1/4 of my balance each month. Well it is time of for the public to tell Citibank FU. If at all possible, do not pay off your account and do not opt out of your account. I suggest you simply bring your balance down to around $500 per month and make minimal payment on the due date electronically. This tactic will save your credit score and send a messager to [bathroom expletive deleted] bank.
October 23rd, 2009 at 9:56 am
Same story here…no late payments…been a good customer for years, yada, yada, yada. Got the 29.99% notice. I’ve opted out and the card will close August 2010. I plan on paying the card off immedietly. However, in reading this blog it looks like I might take a credit score hit over this (my current credit is really good…top 5%)?
Would I be better off to transfer the balance to another credit card?
Oh, and I will be contacting my congressman.
October 23rd, 2009 at 12:27 pm
Max,
Opening a new credit card will definitely help mitigate the damage closing the account will have on your credit score. Without knowing your current interest rate and how long you’ll need to repay your debt, I can’t say for sure that a balance transfer is the best move. However, in most cases getting a 0% rate for a year proves to be a big money saver, so its worth considering opening a new credit card for balance transfers. You can review offers and apply in the main section of Smart Balance Transfers.
October 23rd, 2009 at 1:00 pm
I’m with you all, got my notice on Tues. I’m going to opt out for sure, and if I can’t pay off my balance by the time my card expires, I’m going to tell them to take the rest from $300 billion bail-out money that I contributed to as taxpayer.
Am absolutely going to write my congressman/woman also.
October 23rd, 2009 at 1:23 pm
The narcissism epidemic is still alive and well in Corporate America.
October 23rd, 2009 at 3:16 pm
One other comment for Smart Balance Helper, when I click on the “Smart Balance Transfers” link that you give it lists Citibank as one of your “top balance transfer” cards….?????????
October 24th, 2009 at 12:23 pm
I have about 30,000 spread across several credit cards with a average apr of 3.9 percent on them. Never had a late payment until last month on my chase card which was due to it being lost in the mail. Chase is raising my apr to around 20 percent effective Jan. 1. They have given me the option to reject this and close my account at my request and the apr will remain at 3.9 percent.I can pay the card off in two years easily but if they raise the apr I would be paying over 100 dollars monthly in interest(unaceptable). How adversely would my credit score be affected me closing out the account to keep my low apr? Needless to say I am over credit card companies!
October 26th, 2009 at 2:35 am
Take a look at the situation…
The new credit card law that will kicks in next year will put a stop to arbitrary interest hikes from credit providers for existing accounts. New accounts opened after the law goes into effect will be exempt. What this translates to is that existing accounts will be much less profitable for the bank when compared to the new ones over the long term.
If you are the CEO of a major bank, what would you do?
Question: You can’t just close everyone’s credit account without a good reason. What if you could make it so that customers would want to close their account on their own?
Answer: One logical approach to get around this new law is to force your existing customers to close their account by hiking the interesting rate to the limit of the current law before the new law kicks in. A lot of customers will be lost, but hopefully some will return under a new account with a low teaser rate. Opt out and close your account now and you’ll be offer a new card in a few months with great rates to start the hike game all over again. Think you can transfer your remaining high interest balance to the new lower interest credit card? At a cost of course!
You can always take your business to another bank, but what if they are all following the same strategy? Who would you turn to then? Would you be surprised in getting a similar letter from another bank a month from now?
If all else failed, the bank can always send more reps to colleges around the country to help eager students sign up for their first credit card. That is how I got enrolled with this bank 20 years ago. Ah, there is always the next generation to recruit.
Obviously, the new legislation is flawed. Congress should have put a freeze on interest hike immediately after the passing of the new law so as to protect existing customers from getting dump or the banks setting the interest rate to sky high before it can be fixed. The bankers requested that the lawmakers provide a grace period to prepared for this change. We are just a part of that preparation.
The bad economy is pushing a lot of people to get whatever credit they can in order to make ends meet. If you think the housing bust is bad, wait to see the credit card bust. We are heading straight into it. On top of the move by this bank and others to circumvent the new law, this mass closing of accounts could also be indicative of anticipation by the banks that there will be a whole lot of credit card defaults coming next year. Millions of jobs have been lost in the last few years and more is continually being shipped overseas. If a million jobless person with an account balance of $10,000 each defaults on their account, that add up to $10 trillion dollars on the balance sheet.
In viewing from a wider perspective, why would the bank use the stimulus money to provides credit access to people who could ends up being unemployed at a moment notice? That is when it is safer to use the public money to buy out other banks and for investments. Remember that the stimulus program (started under the Bush administration) made no restriction on what the bank can actually use the money for. It is all about risk for the bankers, and the credit market of any kind is particularly risky right now.
I hope this writing shed some light for those who are as frustrated with the situation as I am.
October 26th, 2009 at 10:14 am
Great post. Lots of great ideas, especially your theory about closing credit card accounts now and taking customers back at less generous rates. I think you’re onto to something there.
October 26th, 2009 at 10:29 am
Shannon,
I realize how absurd that looks, but it is there for two reasons. One, very few companies are currently offering 0% balance transfers, which leaves me little option when it comes to providing offers. Secondly, the card posted under the top offers provides different fine print terms than the cards issued in the past. With the new card, Citi cannot raise your rate until the card expires (generally two years) unless you miss a payment or bounce a check. Sadly, new customers are getting much better deals on Citibank credit cards than previous customers.
As you can tell from what I write on the site, I provide visitors with my honest opinions, and as much as I’d like to boycott Citi, they offer a deal that is good for new customers.
October 26th, 2009 at 12:02 pm
Hi,
I recieved the 29.99% letter too. Never been late, always paid more than the minimum, etc. Current rate is 9% so I have to opt out. My credit utilization number was sky high anyways since the card didn’t have a limit per say, so the credit limit showed 0. Tried to fix that with Citi a while ago to no avail…but anyways, does anybody know what it says on your credit report under your Citi account when you opt out and it’s closed? Thanks.
October 26th, 2009 at 2:03 pm
Depending on the situation, it may say closed at issuer’s request or closed by lender request. Since you are choosing the opt out, your credit report should indicate that it was closed at your request, though with Citi, one can never know.
October 26th, 2009 at 2:07 pm
Mike, I think you shouldn’t even worry about your credit score, since it will probably cost you more than a thousand dollars, if not more, to keep the card open. You should try to mitigate the damage by opening a new account with a different company, but unless you are buying a house in the next few months, you shouldn’t be paying to keep your credit score where it is.
October 28th, 2009 at 4:36 pm
Citibank has raised EVERYONE to 29.9 percent. EVERYONE.
Late, not late, good client, bad client, sick client, well client are all being raised.
This was just told to my aunt today when she inquired about the mail and the opt out thing. They are raising everyone due to “the economy.”
You can call and find out the same information. EVERYONE is going to pay or opt out or go bankrupt. They are aware of this. They need the cash. People will cash in their pensions, their 401Ks, sell their jewelry, anything to pay them off. They need BIG NUMBERS. Likely they have figured out that they can get more money in big lump sums than in struggling people who will pay the big rate over time and then go belly up.
I guess those who have “health savings accounts”
will have to opt out as well.
If I could have one wish before I die it would be to see everyone out of debt and never borrow another nickel. Is this to teach people a lesson? What is the point of this besides unfettered greed?
October 29th, 2009 at 9:36 am
Ten,
I think the only positive that may come out of this situation will be the fact these rate hikes are motivating people to get out of debt-and fast. Unfortunately, many others who cannot afford to opt out, or those who don’t see the email, will pay a steep price.
November 4th, 2009 at 5:59 pm
Citibank should be made to pay for their bad management. Instead, our tax money is used to bail them out then they turn around and stick the gun in our faces and rob us. I say, turnabout is fair play.
November 4th, 2009 at 11:29 pm
I am a Citibank victim, too. I just learned that by end of December Congress will have enacted legislation to STOP THE CITI[funny, but wildly inappropriate EXPLETIVE DELETED]. However, those who have been affected thus far will not be entitled to a remedy. Clearly Citibank needed an infusion of fast capital and this seemed logical to someone in the ranks, but is there any real recourse? I think there exists some opportunity to take the outrage to the social networks, and create an uproar that’s so loud Citibank can’t ignore it. Does anyone the have mad social media skills to pull this off?
November 5th, 2009 at 11:57 am
Citibank took taxpayer dollars, and then turned around and starting taxing their customers. Many of us are paying twice for the mistakes their management made, and stockholders are paying three times.
November 5th, 2009 at 11:59 am
Clearly the mainstream media isn’t raising a storm. Its up to consumers to take action, either by paying off their debts to Citi and cutting up their credit cards or using balance transfers to stop the flow of interest money into their pockets.
November 7th, 2009 at 11:47 am
Please, whatever you do, don’t Opt Out! Move everything off of the card to some new card (and there are plenty out there) and call and cancel the card immediately! Two major measures of success in the credit card business are the number of customers and customer loyalty. If you opt out, you stay on Citibank’s books as a card member until your card expires. It won’t impact them until next year or later and it’s clear they do not care about that at all. If you cancel right now, you immediately impact them. While other companies have realized the harm they caused themselves with short-term gains, Citibank has apparently decided to embrace short-term gains as the way out of the mess. I sure would not be holding any Citibank stock at this time, that’s for sure.
November 7th, 2009 at 4:57 pm
From the Business Ethics Corner: I am now obligated, by common decency (in additional to any of the major ethical standards: rights, justice, and utility) to opt out of Citibank’s credit card. After 17 years without a single late payment, Citibank (with a letter signed by Ken Stork) is raising my rates, like others on this blog, without consideration of customer FICO score or loyalty. I could pay off the balance and go about my way keeping a good FICO score. But only an en masse defection from this corporation will send the message that it pays to moral. The corporation is a part of the community, and as such has a duty to exercise some minimal standard of respect and service. By throwing their customers to the sharks (quite literally if you mean loan sharks) Citibank is orchestrating its own demise. It is an example of what a corporation should not to do for long term recovery and maintenance of market share. Even if you, the card holder can pay off your debt each month, consider the sort of business you are now dealing with. Do you want to be in a business relation with this sort of company? THE WASTELAND GROWS.
November 9th, 2009 at 12:03 pm
That is a good point Charles, though many people are not in the position to opt out due to higher balances or lower credit scores. Anyone who can take advantage of a 0% balance transfer deal certainly should do so, but for most rate increase victims, opting out is the best option.
November 9th, 2009 at 4:38 pm
Citibank credit card users across the country rec’d RATE HIKE notices this week – 21.99% !!!!! Seems the only way out of this soon to be illegal practice of BAIT & SWITCH is to “transfer” another $5000.00 to them!
The better to screw you with!
After all my hard earned tax dollars already propping up this TARP bloated buffoon of a business, I am hardly likely to want to add more to their coffers. YOU AS A TAXPAYER ALREADY OWN PART OF CITIBANK! DEMAND ACTION!
KEN STORK sent me this notice but when I called he was unavailable for comment.
Be aware of this last ditch scam to rob you! New Credit Card Laws go into effect in 2010. If you accept their strong-arm offer to “help” now, you’ll be stuck with all the old nefarious terms & conditions that the new laws are designed to avoid.
DON’T GIVE UP YOUR RIGHTS!
CONTACT YOUR PRESIDENT, REPRESENTATIVES, & SENATORS! Contact the media, write letters to the editor, & CALL, CALL, CALL, them on this bluff!
November 9th, 2009 at 9:29 pm
I received the letter today that my dividend platinum card was going up from 15.99 to 19.99. I never realized it had risen up from 12.99! When I called, the oversees customer service agent advised that due to the economy, the rate at which Citi borrows money increased, thus, causing my rate to go up. LOL. When I got to a manager, I was discretely disconnected. I called back, and the manager, you could tell was already in a foul mood likely from other callers like me, didn’t even want to here my plea. He cuts me off and says, ‘you either keep this, or opt out and close the account.’ So after working there for 2 years, then being a loyal customer for 17 years, with a credit score of nearly 800, I had to opt out. I can’t do business with the likes.
November 10th, 2009 at 9:20 am
I wrote to my senator.. please advise on how victims of citibanks extortion tactics can be fought legally.
Isnt citibank violating are rights and defaulting on their obligation not to raise rates unless there is justification ie: late payments or deliquency?
I dont think this is legal.. could someone advise please
November 10th, 2009 at 10:05 am
Just yesterday I received a notice in the mail. My Citibank credit card that I’ve had since 1999 was going to raise my rate from 10.24% to 29.99%. In the 10 years I’ve owned the card I’ve never made a late payment and I always pay about $400 more than the min payment. I was an excellent customer! When I called them because I knew it had to be in error I was pretty much told…”well we can do whatever we want” so I was therefore forced to “opt-out” and close my account because I currently owe them 18K!! With rates like these, I’d be better off borrowing from a loan shark! I reported Citibank to the Federal Reserve. Shame on them!!
November 10th, 2009 at 11:51 am
PRV,
Hopefully someone with a legal background can comment, but as far as I understand, the ability to raise rates at anytime to the highest levels allowed by law is written into credit card terms and conditions. This is an unfortunate fact many of us have learned the hard way.
November 10th, 2009 at 11:56 am
Loyalty means nothing to these banks. That’s a lesson many of us are learning the hard way this year.
November 10th, 2009 at 12:50 pm
It happen to me since i was a member since 1986, and charged over 300,000. I have never missed a payment.
They raised the rates to 29.99%
This is unreal…..
November 10th, 2009 at 12:54 pm
Received yesterday, 11/9/09, from Citibank-”To continue to provide our customers with access to credit, we have had to adjust our pricing. These changes include an increase in the variable APR for purchases (from 9.24) to 29.99% and will take effect December 20, 2009.” I had to opt out and close my account. If the government truly wants to help us, perhaps they could loan us the money at an affordable rate, cutting the unethical credit card companies right out of the mix.
November 10th, 2009 at 10:58 pm
I just received the same 29.99% rate-hike notice. I relish the thought of closing this account, but since this is my oldest account (opened it in college), I will simply pay off the balance and bury the card. My FICO score is 760, pay off all balances in full each month, and I have never missed any credit card payments. In this economy where you can’t even get 3% for a CD, its amazing that credit card companies are racking in 30% from their best customers! Behavior like this will not stand the test of time. Mark my words: CitiBank will fail.
November 11th, 2009 at 10:43 am
Sam,
You bring up a good point. Closing your oldest credit card account can have a negative impact on credit scores, but it is not as big as many other factors. However, if you can pay it off without too much pain, its worth keeping open. If, on the other hand, paying your balance off will cause a headache, you may be better off transferring the balance to a new card or opting out.
November 11th, 2009 at 6:19 pm
I too received a letter from Citibank indicating that my interest rate would be increased to 29.99%, effective November 30, 2009. I have a Platinum card, have been with Citibank for almost 20 years, and pay my balance in full each month. My first two calls to opt out were not successful – I was bumped to a rep that tried to convince me to stay with Citibank: ‘Just don’t use the card’, ‘you’ll get $2 back on every $20 of interest you pay’, ‘we hate to see a long-time member leave’. On the third phone call I finally got someone that cheerfully closed my account. I have other credit cards to use, and if this negatively affects my credit rating (which is excellent) I’ll simply get a new card from a different company or credit union. Citibank does not deserve to have my business. But they did want my email for promotional purposes!
Also, the letter has an Information Update: We are replacing the “Changes to this Agreement” section of your Card Agreement with the following: “We may change the rates, fees, and terms of this Agreement from time to time as permitted by law.” etc.
So beware of future rate hikes from Citibank.
November 13th, 2009 at 11:21 am
I am glad to see I am in good company as I have also received the 29.99% letter with the little clause that they will give me back 10% of my interest, they must think I cant do simple math, That still leaves an interest of 27.99% ….which in my book IS TOO HIGH! I just called and cancelled with no second thought, people I have seen many comments about closing an account wrecking/distroying your history, it can lower or increase your score depending on the length of term but very minimal. I work in a banking institution as well. So if you get this 29.99% dumbness do not flinch and OPT OUT! Here is what is going to happen, the credit card companies are losing customers and they will have to rethink their strategy and dont be surprised if in a few months they call you to reopen your account at your old rate. Opening or Closing an account is just a mouse click it is very reversible!!
November 13th, 2009 at 11:40 am
Great point. Credit card companies will be seeking our business in the future. Unfortunately, the deals will be somewhere in between absurdly high 29.99% rates and the low 8-12% range we’ve all become accustomed too. However, no company will do any credit card business if they’re best rate is 29.99%.
November 16th, 2009 at 9:34 am
I am also a customer of Citbank, perfect payment record, stellar credit. I received my letter today (dated on the letter November 1, 2009) telling me that my interest rate is going from 5.24% to 29.99%! This is beyond what I thought could happen legally in America.
Perhaps my trigger was paying off most of my balance 2 months ago. They refuse to reveal their system for determining who got rate jacked.
Of course you have to be careful before closing an account if you need a good credit score, because the equally unfair scoring model basis a significant weight on length of payment history. If you cancel a long-held card, you could face a serious score decrease and be surprised with a decline the next time you go to try and buy a car or especially a house. I will go back to paper statements, only charge $1 a year on the card and pay it off immediately in order to keep the card active, and make sure they spend more money on me than I am worth to them. I am also starting a letter campaign to my senators and representatives and posting on all my networking and group sites notices hoping friends and family will join me in boycotting Citibank. I hope we put them out of business as a lesson to other corporate loan sharks.
November 17th, 2009 at 4:55 am
I have a platinum and a diamond card with citi and one of my investment property mortgages is with citi. Both credit cards are at zero balances and the mortgage is in perfect standing… Our rate on our Platinum card just got jacked to 29.99% for no apparent reason.
I have been arguing with them via email.
I have just starting copying and pasting examples from this blog into multiple messages across multiple departments and I think everyone with an axe to grind with them start doing the same!! They probably have some legal requirement to have to respond to every single one. We’ll see!
What I hate is that we have two cards with a long good credit history that I do not want off my credit file….
November 17th, 2009 at 5:12 am
p.s. to above message… We have no real current balance on any of our cards – they were all paid off in full labout two months ago. I was opening the envelople expecting some kind of great offer instead I got this 29.99% surprise!
November 17th, 2009 at 5:15 am
Fred in NC:
Yeah I just realized maybe it was paying off the card that triggered our letter too. Weird – they just made money off of me. They got their investment back. They were likely to again. Not anymore, though, as we have plenty of other cards at zero balances to choose to use. I guess just holding the account open at zero balances won’t hurt me though.
November 17th, 2009 at 9:03 am
i must be a preferred customer. mine just got raised from 9% to 0nly 19.99% eff. dec. 29. screw them. i opted out. if they pull the same crap on my other card with them, i will get rid of that one also….
November 17th, 2009 at 10:33 am
How generous of Citi to be so kind. Be sure to open a new credit card account if you haven’t already to offset the effect opting out may have on your credit score.
November 17th, 2009 at 10:34 am
Linas,
If you know you will be paying in full, you might as well keep the account open, especially if you have rewards points or can earn rewards. Just watch out for more letters. I suspect good customers like yourself will probably get charged annual fees in the coming months.
November 17th, 2009 at 2:19 pm
I got my letter today..going from 12.24% to 16.99%…and I opted out, we have around a $10,000 balance and which would be another $28 month in interest I was told by the “Account Specialist”. I hate to see my 790 FICO go down, but I can not afford this increase. I would never pay off my card that way….I think it is outrageous your FICO goes lower because of something beyond your control.
November 17th, 2009 at 7:12 pm
Got my letter today increasing my rate to 20.99% from an already increased 16.99%. I will opt out, keep the already disgusting 16.99% and pay them off. If I sell their crappy stock to pay off what I owe them is that a net zero on their part?
At least I got lots of their stock super cheap & it’s gone up since then.
November 17th, 2009 at 9:11 pm
So the same day we got our crazy increase to 23.99% we got a balance transfer offer ON THE SAME CARD to .99%. I called and they said we could transfer the balance. This is retarded!
November 17th, 2009 at 11:27 pm
No comment – please read the following
http://www.foxbusiness.com/story/markets/industries/finance/citigroup-reports-executive-salary-rase/
November 18th, 2009 at 9:30 am
Whoa! Mine went to 24% yesterday. Been a customer for 14 years, never late, never exceeded limits, never missed a payment even when out of work for 18 months. I had to deplete my savings, raid my retirement, and even sold my house so nothing would impact my credit. What a crock. I wonder what Citi’s CEO’s interest rate is?
November 18th, 2009 at 10:20 am
Steve,
Did you double check to make sure the balance transfer offer would be honored? Oftentimes, those offers are sent out by different departments, and some customers have reported rejection of balance transfers and balance transfer checks by other companies. Just be careful.
November 18th, 2009 at 10:21 am
Lew, At least your not selling Citi stock for a loss, though do keep in mind you will have to pay capital gains taxes, which will only end up back in Citi’s pockets.
November 18th, 2009 at 10:23 am
Amy,
That only $28 a month adds up to over $300 a year. Customer service has a way of trying to make these increases look small. Given your large balance, you may also want to look into a credit card that offers 0% balance transfers. That could save you about $1200 in interest this year. If you choose to go the balance transfer route, be sure to wait until your card arrives in the mail to make sure you are given a low long term rate that is similar to your current opt out rate.
November 18th, 2009 at 3:47 pm
I got my letter 11/17 taking me up to 19% and I’ve had my card for 20 year and have impeccable credit. Shame on them so I decided to treat them like they did me. This morning I called my bank were I keep my checking and within 10 minutes I stuck it to good ol’ Citibank. 3.9% for 18 months when I transfer my balance from Citi. 0% on new purchase for 6 months, and a rate lower then Citi even before the increase. My letter said my rate will be 15.75%+Prime.
November 18th, 2009 at 4:06 pm
I got my 20.99% letter. I am another never late, pay off my balance monthly customer. I called up to see if I could at least keep my existing high rate and was given a resounding no. I told the guy good luck on paying back their TARP funds because they wouldn’t get any more merchant funds from me. Anyone know of another card that give American Airline miles?
November 18th, 2009 at 7:35 pm
Balance Transfers Helper — I spoke at length to the balance transfer representative and she said it would work. My wife and I have had bank accounts at Citi for more than 30 years so we’re going to the branch to see what happens if we threaten to close all our accounts including investments over this.
November 19th, 2009 at 9:35 am
Air Miles User,
You may actually be better off with a card that offers miles on any airline and charges no annual fee. There are two Discover credit cards that provide this. This way, you can fly on any airline.
November 19th, 2009 at 9:47 am
Another loyal customer for over 20 years. Never late, never missed a payment. By balance is now only a bout $550, but I’m paying it off and closing my account with a note to Sh–ty, I Mean Citi bank – I will NEVER – NEVER hold another citibank card again. Customer loyalty?? Ha! I’ve never even held another card for the entire 20 years. I was their dream customer. Now they do me like this. They have screwed me and so many like me. I say good riddance to those crooks and I hope they go under.
November 19th, 2009 at 10:07 am
Daniel,
You many want to pay off your bill and keep your account open, as closing your oldest credit card account can hurt your credit score. Plus, because you have a small amount of debt, that too may hurt your credit score. (You can use a free credit score service to get an estimate of how closing the account will impact your credit score.) You may also want to get a new credit card to replace your Citi credit card, but closing the account may not be the best idea, no matter how good it feels.
November 23rd, 2009 at 8:07 pm
Citi sucks!!! They raised my rate from 8.2% to 13.99% 2 months ago. today I get a letter it is 29.99%. Never late, no over the limit. I do carry a balance and my minimum is going to be crazy. I closed my account. I know it will hurt my credit score but I can’t afford the minimum. My mom has a citi and she pays the balance off in full every month. Never late! She gets a letter today they will up her interst rate to 25.99% I hope Citi goes under!!!!
November 27th, 2009 at 12:15 pm
A couple weeks back, Citi sent me a letter raising my rate to 19%. I called w/i three days and closed my account. Get this. I had $1600 built up in my drivers edge account–they pay that whenever you buy a new car–and the operator dangled that in my face to try to get me not to leave Citi. (She also offered not to raise my rate, but I was so hacked off I just closed the account.)
After that experience, I was wondering why Citi was urging decent, paying customers toward the door in favor of those who, because they could not repay the company, would stay behind and eat exorbitant interest rates.
Now I see the company is exposed on $1.9 Billion in debt in the Dubai debacle. Anyone making brain waves could have told you Dubai was overbuilt. What were the alleged risk managers thinking?
The truth is, Citibank is just a poorly run company trying to get its own customers to pay for its horrendous mistakes. If the comments on this board are any indication, the company is failing even at that. Eventually, it will get what it deserves, which is to be broken up.
December 3rd, 2009 at 4:39 pm
Citibank lost me as a customer forever. I have had a cc with them for almost 25 years and they were going to raise my rates to ridiculous amounts even though I use their card for several thousand dollars of purchases per month and have never missed a payment. What a crappy way to treat a valuable customer! I am now looking into changing my mortgage from Citi just because I hate them so much.
December 8th, 2009 at 11:23 am
I, like many others here was informed by Citibank that my rate was being raised to 29% for no reason (never late, never missed a payment). Fortunately, I had just paid off the $3000 balance thanks to a bonus from work. I begged and argued with the customer service rep and their manager, but got the same answer…no.
Citibank does not care for you as a customer or person.
I was able to contact my credit union and open a new account. They offered a 9.9% fixed rate (Truliant FCU).
Normally I would opt out of citibank, but since I paid off my balance, I am going to keep my citi card so that my credit score doesn’t suffer. I will NEVER keep more than a $10 balance which I will pay off monthly and citibank will NEVER get another dime from me in interest rates.
Good job Citibank, your avarice has lost another loyal customer.
December 12th, 2009 at 7:16 pm
I received that letter back in October stating that my 13.99% rate would jump to 29.99%. I’ve been a Citi customer for over ten years and have never made a late payment and always pay more than the minimum amount due!! I’ve never made a late payment on any account I have ever had!! I also have acredit score well over 750. I figured that I would keep the card and pay off the balance that i owed. I have a credit limit of $16,500 and was carrying a balance of $9,300. I paid it off in full!! Today I got a call from Citi stating that they reduced my credit limit to $500. I pay it off in full and this is the thanks that i get for being a loyal customer. Screw them!!! I closed the account. A $500 credit limit with a 29.99% apr?? Who needs it!!??
January 6th, 2010 at 11:33 am
My husband has two cards with Citi. As far as we know we never received a letter stating that his APR was going up. He went from 6.7% to 29.99%. He has never missed a payment. Now times are hard right now and we are only paying the minimum, but we still paid on time every month. He called them and got them lowered to 19.99%, but that is still so unfair. We should all revolt, not pay our cards, then we will see how much money they get.
January 6th, 2010 at 8:02 pm
I owed Citibank about $15,000+ last year when they upped my interest rate from 7.99 to 14.99. I called them and they reduced my interest rate to 7.99 for one year if I agreed not to transfer my balance to another bank. Ten months later they upped my rate to 14.99 and sent me a letter that my new rate would be 18.99 in January; and believe it or not I missed a payment once last year because of a lost check. Now I owe them <$13,000 and they have raised my limit to 30,000+. I opened another account with a local bank and transferred most of what I owe from Citibank to their card at 0% for six months and then 9.99%. Now I owe Citibank a small amount which I will be paying off monthly. They will probably close my account and I will take a hit on my credit score but I'm OK with that; it won't last forever. BTW: I get checks from Citibank at least twice a week trying to get me to transfer what I owe on other cards to Citibank; WHAT KIND OF A FOOL DO THEY THINK I AM??????? They also wrote me a letter and said that they would lower my interest rate by 10% if I charged at least $500 a month on my credit card. That's CRAZY …. Do they think that I am that stupid????? At some point I will have to pay that off and during that time I will charged 18.99% interest. PLEASE PLEASE PLEASE don't let them convince you to do that. Do they sit in a board room and try to think of new ways to squeeze the shit out of us????? I have been a Citibank customer for over 30 years and now I'm over them!!!!!
January 7th, 2010 at 10:50 am
Charles,
It’s pretty absurd to think about how dysfunctional Citi is. They have one department sending out balance transfer deals, another raising interest rates and a customer service department that knows nothing. At least you were able to do a balance transfer. It looks like that will be a good move in the long run anyway, so in a way, Citi did help you save money. Its unfortunate that others with lesser credit scores aren’t able to secure deals as you did.
January 7th, 2010 at 10:54 am
Lacey,
I have only two words: BALANCE TRANSFER! You can get a 0% rate for a year, than a much lower interest rate afterwards, probably 12% or so. You can compare balance transfer offers in the main section of Smart Balance Transfers. Feel free to contact me directly if you have any questions.
February 3rd, 2010 at 12:05 pm
I found out last night that my interest rate had been JACKED UP from 14% to 29.99%. I was on AUTOPAY and never was late or missed a payment. I called them and I was told a letter went out and I “accepted it”. I was FURIOUS! I told them I would NEVER accept a double rate hike. I was told that I was a loyal customer and I was right, no late payments. I was then transferred to an account manager who after introductions, hung up on me and never returned the call. I am FURIOUS that people who actually PAY thier bills are being treated this way! At first, I thought “Well, maybe I’ll just become a deadbeat and not pay mine either” but after further thought, I’m taking a low interest rate loan from my 401K to pay these sharks off and will NEVER do business with them again.
Thanks CITIBANK – You are a prime example why the working middle class is suffering to pay you bailout.
February 3rd, 2010 at 12:18 pm
Keith,
I would take a few more shots at customer service. Ask for a US rep, then a supervisor, and be really nice. Tell them you missed the notice and see if they will help. Some visitors have told me this has worked. The key is getting the customer service rep on your side. They’re getting yelled at all day, so if you’re really polite, they may want to help.
A second option, which you should weigh before a 401k withdrawal, is getting a new card that offers a 0% rate on balance transfers and a reasonable rate after. While I don’t know the particulars of your situation, this is an option you should look at or discuss with a financial advisor or accountant.
Hope this helps and truly sorry to hear you got caught in the 29.99% storm.
February 3rd, 2010 at 6:35 pm
I was really mad till I read all the comments on this board. Now I am astonished that so many good hard working people have gotten s—–d by this company and they are getting away with it. Like all the rest, never late or missed. Always made more than the minimum payment and look what it gets you.
February 4th, 2010 at 10:37 am
Well, I’m in deep..and have to blame myself for allowing my balance to get so high. HOWEVER, I never imagined after all this time (as a good customer) this would happen (29.99). I was always able to pay extra each month, I don’t know what I’ll do now. It makes is tough to stay afloat.
Also, customer service is nothing short of PATHETIC!
Shame on you, citibank! You will burn.
February 4th, 2010 at 10:52 am
With the massive amount of comments, I wanted to make sure this suggestion didn’t get lost in the mix. Here are some ideas worth trying I posted in response to a similar complaint.
As to your particular situation, I believe you likely received an opt out notice from Citi in the fall that could have easily been mistook for junk mail. The opt out notice would have allowed you to close your account and keep your same interest rate. Unfortunately, the opt out date has passed, which is why your rate is 29.99%.
A few people have written in and said they succeeded in getting their rate reduced by doing the following: calling Citi (and being as nice as possible), requesting a US rep (still being as nice as possible) and then a supervisor. Explain that you never got the notice and plead for them to help. They might work for a heartless corporation, but these people have hearts. A little honey can go a long way.
If the first rep can’t help you, try again a few times. Keep being as nice as possible, explaining your situation and pointing out that they are the only ones who can help you. This has worked before and it could work for you.
If you are unable to get a break from Citi, you should look into a 0% balance transfer credit card immediately. At 29.99%, you’ll be spending $300 or so a year for every $1000 you owe, and getting out of the hole will take five or ten years and cost you a fortune. If you have a good credit score, you’ll like be able to transfer at least some of your balance to a lower rate card. (You can compare 0% balance transfers here.)
I really wish you the best and do let me know if you have success dealing with customer service. There are a lot of people who have been put in the same situation and if you have success, perhaps others will be able to benefit.
February 4th, 2010 at 5:31 pm
If you did not read your opt out notice and just learned that your interest rate increased to 29.99%, please share you concerns on the open letter to the CEO of Citibank I have posted in hopes that this situation will be resolved fairly. See http://www.smartbalancetransfers.com/blog/2010/02/letter-vikram-pandit-credit-card-rates-719/ to read this letter.
It is my hope that Citi will realize it made a mistake and help out the people who have been hurt by this rate increase. The more people who share, the better chance we have of getting the attention of the people who can fix this situation.
March 1st, 2010 at 11:01 am
Yup, another screwed Citibank customer. First they slash the credit limits. I was at 50% of my credit limit until they slashed my credit limit and suddenly I’m at 90% of my credit limit. They also tried to raise my interest rate a year a half ago for no reason other than “you have high limits on your accounts,” I have 2 Citibank accounts. They agreed to lower my interest to lest than 9% after I rasied hell with them over the phone. Now, they’ve down it again, I made my payment for this month but because of their sudden raise of interest, it didn’t cover the minimum payment so my account is suddenly past due. I really hate the fact that there are relieves for banks when they screwed up the entire financial system but no relieve for consumers on their credit reports. The banks are slashing credit limits, raising interest rates and go as far as saying it’s the “lowest rate available.” And our credit score take a hit because suddenly we have high interest accounts with maxed out credit limits. WHAT A BIG FU TO THE PUBLIC. We bail them out with our tax money, and we get screwed once again.
March 1st, 2010 at 6:12 pm
Well I might as well add my 2 cents worth. I’m in the same boat with interest rates on my citi cards jumping to 29.9%. What I would like to know is how they are treating their bad customers? I was never late, always paid more than the minimum, never went over my limits. I would consider that a good customer, so again, what did they do to the bad customers? Send a hit man after them? Unbelievable!! Now I know them for the true loan-sharks they are. It ruined my credit score because they reduced the credit limit to the amount I owed so my credit to debit ratio is topped out! This snowballed because other cards were also reducing the limits. And then since they raised the rate, I didn’t use the card and knowing I didn’t put any new charges on it, continued to pay what I had been paying for a payment (more than the minimum). Of course I didn’t realize the minimum went up and paid the same last month. They called me late because I didn’t pay the extra $28.00 due to the increased rate and charged me 39.00!! After a perfect payment history for nearly 10 years, it’s been ruined! I’ll never use a citi card again and will tell my friends and relatives not to. I would like to mention that of all the cards I have, American Express has been the most decent bank. Always friendly and willing to compromise. Their rates increased to after this economic shamble but only to 15%! They will continue to get my business and I will pass that opinion to others. CITI doesn’t need to crucify their good customers because they lost money on their bad customers. I can’t believe this government bailed them out! They should have let them go down the tubes. They aren’t worth saving, they’re scum loan sharks and nothing more! Now I know why their stock is only $3.00!
March 14th, 2010 at 4:00 pm
Got my letter last month. I had a $50,000 credit line. Was a customer for 15 years. No missed/late payments. My credit is good.
My credit line reduced to $7,000 and my interest rate upped to 29.99%.
I walked into my local bank branch, threw the card at the bank manager, told him “f–ck you” real loud” and tossed the card at his face.
March 15th, 2010 at 10:08 am
Daniel,
I think a lot of people have wanted to do what you did. Thanks for letting them live vicariously through your actions!
March 16th, 2010 at 7:57 am
Hey! Nice job Daniel. Every cardholder should do just that. That gives me an idea to do the same. I think there is a CITI branch somewhere nearby.
March 16th, 2010 at 2:43 pm
I had a felling Daniel would inspire a few people.
August 22nd, 2010 at 8:44 pm
This is the funniest site ever!!!
1. The bail out was nothing more than an unsecured debt that was solicited to citi that we accepted. As everyone of you has. Only dif is that we can pay ours back and we read all the terms and agreements. The only way Citi’s cards have hurt you is if your not intelligent enough to spend pm it the way it shld be spent. (dont buy something if you dont know when you can pay it back)
2. Citi paid back bal in full on the “bail out”
3.Closing a card hurts your credit very smally. The way it is calculated is debt to availible credit. All it does is lower your availible credit. Which does not affect it much unless you only have one card and have spent so much on it that you will never be able to pay it back, hence why citi is going to get as much money as they can while they can. And if you close the card it will show you requested to close the card. If you wiat long enough citi can close the card and then it will show closed by bank.
4. Even if you dont miss a pymnt on you citi card Citi will watch to see how you are paying your other bills, what you are worth, and what your asscitates are worth. If all this adds up to more than what you owe, ope there comes your increase in rate.
5. And for all of you who are saying how stupid citi is for this b/c you are so well off, do a balence transfer and stop whinning. PLEASE!!!!
Thanks all.
Now you can all understand why you’ve gotten YOURSELVES in such a mess. Not Citi.
August 23rd, 2010 at 7:56 am
Crazies,
I considered not approving your comment, as you take aim at guests of this website and are unfairly harsh towards them. If you read these comments closely, what you will find are honest, hardworking, ETHICAL Americans. There are no deadbeats or crazies posting here. These are honorable people who were often penalized by the aggresive use of the most nasty fine print tricks that existed before the CARD Act.
As to your point #2: WRONG. Citi has paid back the cash, but the government still is stuck holding millions of shares of Citi. So the bailout is still helping them.
As to 3: Closing a card can hurt your credit score quite a bit. I know of some people who have contacted me, and one who was subsequently profiled in Forbes, whose credit score went from Excellent to Average (about 100 points) due to credit limit cuts.
And as to 5, yes, doing a balance transfer is a good idea. But guests aren’t whining. They are sharing so that other people can benefit from their experiences.