CITIBANK NA - CttiBusiness Card Late delivery of payment resulted in astronomical interest rate increase sioux Falls, South Dakota

To Robert

Robert wrote "So, I tend to believe that anyone who has had a significant interest rate increase or credit limit reduction or a closed account very likely has "other issues" that may have triggered such actions."

Well, Robert you are wrong.  I have had an account with Citibank for 5 years. I have very good credit.  I have never missed a payment and I have never been late with a payment to Citibank.  I always pay more than the miniumum payment. They even gave me a $3,000 credit increase about 2 months ago, without me asking for it.  Then I recieved a letter saying my interest rate was going up to 29.99%. I started out with a 9.9% interest rate.  They even agreed I have been an excellent customer but their explanation was:  "To continue to provide our customers with access to credit, we have had to adjust our pricing".   I was told I could pay the increase or opt out at my current interest rate,  but if I opt out, my account would be closed and reported on my credit report.   The only issue I can think of is my age, because I am 61 years old.  I cannot afford to pay the 29.99% interest, so I will have to opt out.  If  I opt out I have to have the card paid off in 5 years, so maybe Citibank is trying to make sure my card to paid off before I retire.  Other than that there is absolutely no reason for them to raise my rate. 

credit card agreement

I understand how you feel regarding your rate increase.. But what you do need to remember is that when you activated that credit card you were accepting the credit card agreement. You agreed to the terms of the bank which does state that if your payment is late that your rate can be increased.

The reason...

Because you signed the agreement...you did leave the company an opportunity to raise your rates if you are late. But they probably would have found a reason anyhow.

There is legislation going into effect next year that will put a cap on what these greedy monsters can charge..so they are raising rates like there is no tomorrow while they still can...and we are noticing this happen to customers that have never had a late payment..ever. Way to help the country during a recession..there is nothing else to say really.

They find a reason..that is what they do now. Either that..or they are simply canceling cards altogether if they are not making enough on the account. Most customers who have lodged a complaint here state they did not even know the card was canceled until they were at a point of sale. Imagine that?

Customer service or consideration is a thing of the past. Welcome to the new world.

Really Ronnie?

"There is legislation going into effect next year that will put a cap on what these greedy monsters can charge..so they are raising rates like there is no tomorrow while they still can..."

Really?  Kindly post the law that was passed in Congress and signed by the President that is going to limit the amount of INTEREST that the credit card companies and banks can charge.  I already KNOW that you can't because no such legislation has been passed.  Also, there is no VIABLE pending legislation that will do this because such a federal "standard" for credit interest would be unconstitutional.  Kindly post the passed legislation that is going to CAP any interest rates, late fees, etc. 

The legislation that I have read does NOT CAP any of these things, rather, the legislation sets standards such as time required for change notification and changed rate implementation as well as "triggers" for such fees.  The legislation mainly deals with NOTIFICATION and date of implementation-NOT the actual AMOUNT of the interest rates and fees.

"and we are noticing this happen to customers that have never had a late payment..ever. Way to help the country during a recession..there is nothing else to say really."

I agree that based on media reported complaints this would APPEAR to be the case but I doubt that it actually is or is as widespread as would appear on such websites as this.  I have posted in the past that this is not happening to everyone, in fact it's hasn't happened to me or anyone I know.  I have had the SAME VISA card since 1995 and my interest rate has been PRIME plus 7.99 (not the best rate available but it has been CONSISTENT) for the last 13 years (it changed from fixed 8.99 to variable prime plus 7.99 in 1996.)  My LIMIT has INCREASED over the same time (never been lowered)- last year they upped my limit by $2000.  During this period I became UNEMPLOYED, returned to school full time (graduated with 2 degrees) and am currently self-employed.  So, I tend to believe that anyone who has had a significant interest rate increase or credit limit reduction or a closed account very likely has "other issues" that may have triggered such actions.

Clearly, these interest rate increases and lowered credit limits are NOT being applied on a scale that certain media report-the actions are occuring with a small percentage of consumer credit accounts.

Response for Robert...

"There is legislation going into effect next year that will put a cap on what these greedy monsters can charge..so they are raising rates like there is no tomorrow while they still can..."

Really?  Kindly post the law that was passed in Congress and signed
by the President that is going to limit the amount of INTEREST that the
credit card companies
and banks can charge.  I already KNOW that you can't because no such
legislation has been passed.  Also, there is no VIABLE pending
legislation that will do this because such a federal "standard" for
credit interest would be unconstitutional.  Kindly post the passed
legislation that is going to CAP any interest rates, late fees, etc. 

You are correct.  Thanks for pointing it out..it is not actually a cap..it got voted out I know..but you must agree the changes in 2010 are causing the banks to panic and raise fees...for example this excerpt copied from a business news article...

President Barack Obama is expected Friday to sign stricter credit card regulations, but don't expect immediate protection.

Most of the rules won't take effect until February 2010. Meanwhile,
credit card companies may continue to tack on new fees and increase
interest rates while they can.

Credit card companies also warn that, under the law Congress
passed this week, they'll have to search for additional ways to earn
money. Even cardholders who pay off their balances on time could see
higher charges on a variety of services.

The legislation that I have read does NOT CAP any of these things,
rather, the legislation sets standards such as time required for change
notification and changed rate implementation as well as "triggers" for
such fees.  The legislation mainly deals with NOTIFICATION and date of
implementation-NOT the actual AMOUNT of the interest rates and fees.

"and we are noticing this happen to customers that have never had a
late payment..ever. Way to help the country during a recession..there
is nothing else to say really."

I agree that based on media reported complaints this would APPEAR to
be the case but I doubt that it actually is or is as widespread as
would appear on such websites as this.  I have posted in the past that
this is not happening to everyone, in fact it's hasn't happened to me
or anyone I know.  I have had the SAME VISA card since 1995 and my
interest rate has been PRIME plus 7.99 (not the best rate available but
it has been CONSISTENT) for the last 13 years (it changed from fixed
8.99 to variable prime plus 7.99 in 1996.)  My LIMIT has INCREASED over
the same time (never been lowered)- last year they upped my limit by
$2000.  During this period I became UNEMPLOYED, returned to school full time (graduated with 2 degrees)
and am currently self-employed.  So, I tend to believe that anyone who
has had a significant interest rate increase or credit limit reduction
or a closed account very likely has "other issues" that may have
triggered such actions.

Of course they are going to go after the ones with "issues" first. When they run out of those..who do you think is next? And has far as "issues"...it seems judging at least by some of the reports here I have read...did not necessarily warrant rate increases so extreme or cancellations. Robert, we don't need to argue our differences in opinion...if you state a fact that proves me wrong or misstating anything..I will conceded..but something as evident as what is going on now..that did not go on before to this degree..is merely reporting the obvious.

Clearly, these interest rate increases and lowered credit limits

are NOT being applied on a scale that certain media report-the actions
are occuring with a small percentage of consumer credit accounts.

This statement rings familiar of what we had to read in defense regarding overdrafting and re-sequencing policies. And yet.....even with a so called "small percentage" of banking customers that incurred overdraft fees...policy changes are being made.

I can not tell you how to feel..but I can tell you this. Even if ONE customer is hurt by an unfair policy..it should be treated as if 50 billion people were hurt. Just like if you murdered 50,000 people..you could not get off with less time because you only murdered a small percentage of the population..extreme example yes..but it's proving a point. In my opinion..every person has a right to complain...and request changes if they believe they were done wrong..and not crawl under a rock and hide because it only happened to a "small percentage".

Because if ANY company is allowed to continue hurting others without it being exposed and can profit from it...then it can only get worse before it gets better, and before you know it..a "small percentage" gets larger and larger..am I wrong?

You don't even have to answer that. Time and evidence will for you.