Citi Hikes Card Interests Rates
I have been a long standing customer of Citi bank as well as the rest of my family. I have had a credit card through them since I turned 18 years of age several years ago. I have three cards with them, all of which I have perfect credite with… never been late 2 of which that are zeroed out every month and one that has a relativly low balance.
I got a letter in the mail the other day with a notice that all of my credit cards interest rates have been increased 8% from their orignal rate. I was terrified that something had gone wrong, I quickly rushed to the phone and called. The lady was polite but informed me that they needed to raise their interest rates in order to cover their costs. I asked the lady if going from 11.99% APR to 19.99% was anywhere near right. She told me that she thought it was crazy and I had to agree.
Now, I was asked if I agree to those terms and if not I would have my card cancelled once the new rate went into place 2 months later. I challenged her to the best of my abilities… and she lowered it down to 14%… she told me that she was told that everyone is required to raise their card rates by 2% but to try and get customers to agree to their new rates and only if they threaten to cancel to offer lower rates. I don’t know about you but thats a pretty terrible way to treat your customers.
People wonder why credit is killing America when credit card companies can just hike your rates 8% and give you a couple month warning if that before they increase your rates… what if you had a balance you were paying off… but that is where they get you… variable rates.
