It has now been over a week since Citibank raised interest rates on many of its most loyal customers and it seems as if no one in the media cares.  This continues to shock me, as the number of visitors contacting me has not dwindled.  And my concern that tens of thousands of customers have overlooked these letters and tossed them in the garbage is growing by the day.

I searched Google news a few moments ago expecting to see results from the Wall Street Journal, the New York Times or USA Today.  Nothing.  And, since these are the only three papers anyone seems to read these days, that leads me to believe anyone who threw their rate increase notice in the mail will be in for a very big surprise when the new Citi interest rates take effect. Continue Reading »

Since so many of you come to Smart Balance Transfers to vent, I want to take the opportunity to do some of my own venting.  People began receiving rate increase notices this weekend.  By Monday morning, I’d heard from at least 30 people, and the number of comments continues to swell.  Increasing interest rates to 29.99% is absurd and this ought to be big news.  But its not.

So far, I’ve found little more than a Huffington Post blog article, which for some reason rejected my comment on the story, and a small blog posting on MSN.  Other than that, no major media outlet seems to be interested in the story.  Have we become so accustomed to malicious credit card practices that this massive rate increase is no longer newsworthy. 

So I tried to contact ABC news.  No luck.  Apparently, no one seems to care that the financial well-being of tens of thousands of Americans is in danger.

And that’s my vent.  I am very privileged to have the opportunity to facilitate the sharing of information on this matter via the Balance Transfers Blog, but I am also deeply, deeply disappointed in the major media players for turning a blind eye to an event that has far reaching implications for everyone who carries credit card debt.  Shame on them.

I just got a copy of the Citibank interest rate increase letter and, perhaps like many of you, am completely baffled.  Unfortunately, I’ve spent the past five years reviewing credit card terms and was hoping to find some definitive answers in this letter.  However, the terms Citi is proposing are as incomprehensible as its decision to raise rates on what I’ve learned from over 60 readers are very good customers with very good credit scores.

1.)  Traditional opt out notices require those who opt out to accept an immediate closure to their account.  You opt out, the card is closed, and that is it. Period.  In the letter I reviewed, it states that the cardholder can use the card until the expiration date on the card.  This wreaks of trickery and my fear is that consumers who opt out but use the card after the opt out date will see their rates increased to 29.99%. Continue Reading »

After a relatively calm three months in which credit card rate increases slowed substantially, Citibank’s decision to raise interest rates to 29.99% on tens of thousands of customers has taken many-myself included-by surprise.  Yesterday, I posted some options for people dealing with this situation and I wanted to update those as well as point out some additional points. (See Citibank Interest Rate Increase Solutions for yesterdays article as well as Citibank Raises Interest Rates A Lot to read comments from other visitors.)

First off, most people will need to opt out of the rate increase.  Continue Reading »

The shocking and unprecedented interest rate increases from Citibank has generated a flood of comments and, as editor of Smart Balance Transfers, I am trying to put as much helpful information online as I can.  Consequently, I am hoping that someone can email me a copy of a rate increase notice so I can review the terms and conditions more fully.

If you received a Citi rate increase letter and want to help out, please email us a copy.  However, PLEASE be sure to use a BLACK MARKER to cover any personal information such as your name, account number etc, as I would like to post this online.

Thank you in advance for your help and please see our tips on Citibank Interest Rate Increase Solutions for ideas on how to handle this troublesome development.

After a brief pause, and right before new laws to limit interest rate increases take effect, Citibank appears to have raised interest rates on a wide range of its customers.  Over the past weekend, close to a dozen people posted on Smart Balance Transfers about monstrous rate increases that lifted APRs to 29.99%.  Fortunately, if Citibank raised your interest rate, there are easy steps you can take to lessen your financial pain

Option 1:  Opt Out and Open a New Credit Card Account

Unless you have the ability to pay your credit card balance in full, the best way to deal with an interest rate increase notice is to opt out by closing your account.  This will allow you to repay your balance at the current rate, ultimately saving you hundreds, if not thousands of dollars in interest expenses.  If, for example, you carry a $10,000 balance on a Citibank card with a rate that is moving from 15% to 29.99%, you will save around $1,500 in interest by electing to opt out.  This is a no brainer.  Don’t over-think it.  Get on the phone right now and opt out. Continue Reading »

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%. Continue Reading »

Editor’s Note:  At the time of publication, Citi had only raised rates on a few store branded credit cards.  For information on the current Citibank credit card interest rate increases, see this article.

Much has been made today about Citibank raising interest rates on consumers.  However, it appears the increases are only tied to co-branded store credit cards issued with Macy’s and Sears.  According to reports, the interest rate increases average 3%.  The media, however, has turned this into a headline story when, compared to the actions of other banks, this is a rather small increase.

Late last week, Chase raised minimum payments for some consumers by 150%, from 2% of the balance to 5% of the balance.  This has put many consumers on the brink of default, as once manageable payments have ballooned into mortgage sized responsibilities.

Similarly, Chase, Capital One, and a wide array of other banks have been sharply increasing interest rates on broad swaths of consumers with solid credit histories.

Perhaps the fact that Citibank is a semi-nationalized bank is causing this big uproar.  But ultimately, Citibank’s decision to raise rates on already high interest store credit cards people should not have been carrying balances on in the first place is one of the least newsworthy credit card headlines of the past six months.

I’ve been intrigued by the thought that Citi might be becoming a good credit card company.  At first, I had some theories, which I stand by. (Read More Here).  Today, after sticking my neck on the line, I got some reassuring evidence that the new Citibank is a good credit card company.

Today’s evidence arrived in the mail, in the form of a mail offer for my wife.  Unlike similar offers which have been infrequently appearing, this card provided a 0% APR for a full year on purchases and balance transfers.  This in itself is surprising, as the few offers that have hit our mailbox lately have only offered 0% rates for 6 months.  (The offer was the Citi Platinum Select Card, which you can learn more about here.) Continue Reading »

Consumers worried that their credit card companies are going to raise their interest rates who are also scared that a company they do a 0% balance transfer with will also raise their rates are justifiably concerned.  However, these concerns are generally unfounded, as credit card companies must honor 0% introductory rates as long as consumers don’t violate the terms of their agreements by going over the limit or paying late.

That said, 0% interest rate periods only last so long, and choosing a good credit card company is more important today than ever.  That is why even I am surprised to write that Citibank’s 0% balance transfer deals are probably the safest balance transfer offers around.  I recently outlined my thesis on Citi in the article, “Is Citi Becoming a Good Credit Card Company?.” Continue Reading »

Overview

It is almost painful to write this, but amidst all the recent rate increases, credit limit cuts and fee increases, battered and beleaguered Citibank is emerging as a good credit card company.  There.  I said it.  I just stuck my neck out and made a positive statement about Citibank.  In the days when Citibank wasn’t owned by our government, Citi traditionally ranked pretty low on the credit card totem poll.  J.D. Power, for instance, consistently ranked Citicards near the bottom of the pack.  But now that we own Citibank, it appears as if its credit cardholders are getting treated fairly.  And perhaps its time for the rest of us to start reaping what little benefits we can from our multi-billion dollar investment in Citibank. Continue Reading »