A little over two weeks ago, Smart Balance Transfers began receiving a deluge of complaints from Citibank customers who had their interest rates increased to 29.99% (See Citibank Interest Rate Solutions to view comments). Surprisingly, however, major media outlets seemed not to notice this headline worthy story. I personally attempted to contact ABC news to bring attention to the story. They were uninterested.
As the days began to pass, I grew increasingly frustrated. While hundreds of responsible card members were contacting me, I feared that less responsible victims of this rate increase may not have noticed or opened their rate increase letters. I blogged and blogged, and thousands of people have read my thoughts on the matter. Unfortunately, the readers of this blog were often searching for information on the rate increase or looking for a balance transfer credit card to transfer their Citi balances from. The people that needed to read about this, i.e., the people with high balances and a tendency to toss junk mail looking opt out notices in the garbage, were not getting information on this situation.
Now, over two weeks later, the Citibank interest rate increase finally got a nod in a Wall Street Journal credit card article penned by Karen Blumenthal. Although the increase is not the focus of the article, Ms. Bluemnthal does mention the rate increase in the second paragraph. Not the headline American consumers deserve, but a head start. (By the way, Ms. Blumenthal’s article contains some very good general information about the direction of the credit card market as well as sound advice to consumers.)
As I’ve stated before, the real problems with the Citibank interest rate hike will not be known until those who failed to read their opt out notices see their interest rates tripled in a few months. At that time, consumers will have no remedy. Thus, it is my hope that more mainstream news sources cover this story, as the general public needs to be made aware of this situation, as many of the people who will learn of the rate increase with their statements arrive in the mail may not be able to qualify for the type of 0% balance transfer deals available to consumers today, leaving them stuck paying interest rates usually reserved for people who fail to pay thier credit card bills.
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