Citibank review: interest rate increase 23

I have my citibank master card since 1989 and checking/saving since 1980. This past billing statement, my interest rate went from 10% t0 29.99%. I called citibank customer service and was told there is nothing they can do about it, that federal laws mandates them to do so and they cannot break federal laws. No one was able to give me an answer as to why the rates went up. I tried to keep up with all my payments, however, this increase now put me over the top. How do you go from paying $250/month to almost $800...I am a very responsible individual, however these companies makes it impossible for people who are struggling in this economy. Guess since I cannot make the payment, they will be calling and bugging my phones trying to negotiate with me. I had it with these banks.

Due to a divorce and financial issues from the recession, I could not "opt out" and pay off my card. So now I am stuck with a 30% interest rate and a very high monthly minimum payment. I have never been late and always had excellent credit. I am now trying to keep my head above water, and have called repeatedly to try to work out some sort of payment plan so that I don't have to go to a debt negotiator or file bankruptcy. I was raised to be responsible, pay what you owe, and be fair. Apparently, the banks no longer feel they need to be respectful of their customers, and customer service is no longer a requirement. After several written and phone communications, and essentially begging them to help me pay them back the full amount without the ridiculous interest rate, they repeatedly refused to help in any way. So I cancelled my automatic payment, and will no longer be paying them ANYTHING. I wonder how long it will take before they call and offer a solution to my problem? I am done being sucked dry by the banks that couldn't make enough offers for money a couple of years ago. Don't want to play fair, then neither do I.

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?

I agree with everyone on this rate hike. Why did the government give them so much time to screw us? I have three accounts with citi and high balances. No balance transfer offers coming in, so I am just closing the accounts. It will put a real dent on my credit report, but I have paid off my mortgage, and always pay cash for my cars, and my kids are out of college. I'll take the ding on the credit report before being raped by Citi

I received the letter yesterday. Fortunately I never carry a balance anyway.

I find it even more ridiculous that after raising the rate to 19.99%, in the very next paragraph they make me the generous offer offer of keeping my rate 10% below the published rate until 2011 IF I transfer a minimum of $3000 to them. Say WHAT!? So for the "privilege" of transferring $3000 at a cost of $90 (don't forget the 3% balance transfer fee (cha ching!) I get to keep my rate where it should be to begin with.

Does anyone recall them before Congress in 07 promising not to raise rates? How soon they forget.

Umm, thanks but NO THANKS Citi. I prefer to close the card. Amex Blue and Chase Freedom will meet my needs just fine.

Why Isn't This On Mainstream Media ?

Why isn’t this on Mainstream Media? All of the banks are doing it ! Maybe certain politicians may look really bad? Aren’t these drastic rate increases directly related to recent legislation passed to “regulate the credit card industry”? And, the politicians allowed the the credit card company(s) and banks many months to adjust their terms and interest rates far ahead of of these “regulations” taking effect. The politicians really took care of their “Banker Friends”! Appears that this pending “regulation” is really created to be a financial windfall for the banks and credit card companies while the poor working guy who supports ALL of them is having the life choked out of him! How do they ever expect the economy to ever recover if all of our hard earned dollars are going to ever increasing taxes and this “Legalized Loansharking”! There are no $$$ left for us to spend! Let’s send them all some more “bail out” money ! . . . What a disgrace!

I just checked. I didn't realize the HomeDepot uses Citibank. I spend 3-4 thousand a year there. I use the CC if it's a interest deal like no interest for 6 months. I have to call and find out if they are doing the same thing.

My wife just got this. This is insane. Did they think people would be OK with this. There are a ton of CC companies out there with 10% for new customers. My wife had her card for 20+ years. SO BY BY CITI. I guess they will go under anyway from what I am reading in the paper

They did this to my wife also. She has had card for 20 +years. Did they really think people would be OK with this. They are Trying to screw their customers. There are a ton of credit cards ou there. SO BY BY CITI. Looks like a whole bunch of people are leaving you. I wonder who's brilliant idea this was.

I too am opting out of the right to pay them 30% of each purchase I make. If I could pay my balance down today, I would and never give them another cent. I spoke to an agent who gave me the name of the Fair Lending Officer of Citibank - here's the info if you want to write and tell him there is no 'fair' in their lending practices...

Vincent Scanlan
Fair Lending Officer
1 Court Square 01-48
Long Island City, NY [protected]

Victims of greed

Yes, I am another “victim” of CitiBank. Great move bailing them out – should have let them fold. Legalized LoanSharking! I own a business and will never again consider using ANY CitiBank Product. Like the others I received the unjustifiable 29.9% increase as well. CitiBank has made it’s bed and lost the valued, loyal customers base that would have supported them for years to come. They have further driven many more nails into the coffin of the dying retail industry and the economy. This one is really going to catch up with CitiBank – they have broken the backs of the people that they need to stay afloat! Good bye CitiBank!

Here's another one. I was a good customer with AT&T / Citibank since 1993, never late, never over my limit, rarely ran a balance. I went from 6.9%, and $13, 000 limit to a; 16.99%, and $610.00 limit, now they want 29.99%! I can't believe we the people baled them out. I cancelled my account tonight. Sooner or later these ### will be out of work, serves them right. Never again will I give Citibank or AT&T my business.

I am a citi customer service rep i take the calls every day about the rate increase. First just want to say i agree with all the comments it is horrible what is happening to great card members and just wanted to say please keep in mind when u call about your rate that the rep u speak to has no ability to override citi changes they give us 2 things to tell u = accept or reject and asking for a supervisor doesnt help either, its not the reps fault that it is happening or that they cant change it just please think about that before calling and cursing out the poor rep on the other end of the line

Same thing here. Received a notice of rate going up to 29.99%. I have gold star credit. When I called, I was told it had nothing at all to do with my credit or payment history. Just 'economic conditions'. Ridiculous. Of course I had to opt out. Who in their right mind wouldn't? I can't imagine anyone paying that rate.

Thanks EVER SO MUCH to all those jerks who decided to bail on their mortgages, credit cards, etc., because Oh they weren't really told how much that luxury home would cost. BS! Irresponsible lazy ###s.

I was told my account would remain open until the expiration date on my card. Then it would be closed, but that I could continue to pay down at my current rate. I could then opt back in if I wanted. Because she seemed sure this rate change was a 'temporary thing' and that who knows what will happen next year. Right.

She also mentioned they were giving us a 10% credit on the interest charges we pay each month once this takes affect. I told them that was a complete joke. You give me 10% off, but I still end up paying an addl $80 per month in finance charges? They are insane. Only the most desperate folks who have absolutely no other options would continue to keep this card. Anyone with even an inkling of choice will dump it. How are they going to stay in business that way? And who will help those folks who HAVE to keep it? It's just sick.

I've had my Citi Bank Mastercard since 2003 at an interest rate of 11%. I've never missed a payment and often paid anywhere from $25 to $100 over the minimum payment. I just received my notice today, October 21, 2009 that my APR will increase to 29.99%. I called Citi and was told my only options are to pay the balance off to avoid my minimum payment jumping to a whopping $150 OR to opt out and close the account in order to keep my 11% rate and pay off the balance. Well, I opted out and they shut me down. This is going to severely hurt my credit score because it's my oldest credit account with the highest credit limit. Citi took my tax money as a bail-out and then does THIS to me?

I'm tired of being raped by banks and mortgage companies. I also received the same notice from Chase bank that my rate is going to 24.24% and US Bank is jacking that card up to 21.99% by December 1st. I asked all three banks why my accounts were hit with these rate increases and was told that "all of our card holders have received the same increase". They all did this to make off like bandits before the January 1st laws go into effect. Way to go Congress...way to watch out for us consumers!

The ripple effect of this is going to be massive and small businesses will be hit the hardest. With Citi, Chase, Wells Fargo and Skank of America raising these rates like this, most people will opt out of the rate hike and these thieves will close the consumers' accounts...meaning no credit cards or at the very least, credit cards with high interest rates. This in turn will cause severe cutbacks in consumer spending...again sending the economy into a major tailspin.

I own a boat rental company and 80% of my customers use credit cards for the rentals. My guess is that this will hit my business so hard that I will be forced to close my doors and lay off eight employees. God only knows the vast numbers of businesses across the country that will suffer the same fate. I hope Citi collapses completely and their executives go to prison or contract some horrible disease that keeps them in severe chronic pain for the rest of their miserable thieving lives. Thanks Citi for taking my tax money to bail yourself out and for jacking my interest rate up so I have no other choice than to close my account and hurt my credit score, in turn killing my ability to obtain credit lines for new boats and equipment. Oh, and thanks for jacking up the interest rates on the rest of your credit card holders so that they can no longer use credit at a reasonable interest rate to take their family out for a boat ride...I mean, who wants to pay 30% interest on a boat rental?

We consumers desperately need to band together and file a class action lawsuit against CITI, BOA, Chase and whoever else is following suit. Because not only does this effect our credit and spending power, it will kill small business. Anyone interested in participating in a class action lawsuit, please email me at robr@aquaducrentals.com. I am getting the ball rolling on this tomorrow morning.

Time to take action folks, America is dying...at 29.99% interest.

I know of a company that can settle this debt down to about half of what you currently owe. Send me an email to debtrelief@rocketmail.com

I have been a customer for 16 yrs, no late payments. My story seems like the rest I am reading. My letter from Citibank also stated that my interest rate was going to be raised to 29.99% for no reason. Of course, I opted out. And I will be even more furious if this has a negative impact on my credit. "Consumer credit protection act"...yeah, right.

Organize and start emailing Mr. Barney Franks US congressman who loves to take on the banking industry. Citibank took 36 million of TARP funds supossedly to increase leading...thats what they and Fed Reserve said...well they did and guess how they plan on paying it back...middle class americans are getting their credit card interest rates increased to 25-29% to repay TARP which was our taxpayer money in the first place. Go Citibank. Our notice of increase came yesterday for our Sears Citi gold card which we owe about $900, no late payments always pay more than the balance requested so we will opt out, pay em off and finally after 30 years...no more shopping at Sears...Sears choose Citi to handle their credit lines so to heck with them also for bad management.

My card had printed on the front "Member since 1987" - I got the letter - called and closed my account the same day - it is amasing that other credit companies are charging 5 to 12% and Citi has to go up to 29.9%. I thought the president was going to fix this - well if he did - we now know who got fixed... US.

Just got a notice yesterday. My card that was 7.5% which I've had for 18 years is going to 14.99 variable. I haven't carried a balance on this card for 8 years although I routinely use it for purchases and pay it off every month. My FICO score is 820 and I have no debt.

I see this as a panicked response to the new legislation. Nothing else makes sense. If I wasn't carrying a balance at 7.5%, I'm damn sure not going to at 15%. And I now have a negative view of Citibank as they seem to not value me as a customer.

I just wonder if they've calculated the long term ramifications of double crossing good customers. The recession and crisis won't last forever, but my opinion of them will.

Can't we band together and fight this? There are tons of people out of work who could most likely build a website in order to get a grass roots effort to Just Say No to these banks? because guess what...the others will follow. I have emailed everyone and every agency I can think of, but we need more organized action.

I just got off the phone with Citibank complaining of the same increase. I've been a loyal cardmember for over 14 years, never late, never over limit. I just wanted to know "why me?" They couldn't give me a straight answer, only citing "the current economic conditions." Obviously I cannot afford this kind of rate hike, so I opted out-- unfortunately still carrying a balance that I cannot pay off in full...

Another blow to hard-working, middle-class schmucks like myself who try to play by the rules and end up getting screwed. There goes my 760 credit rating...

I just got my Citi credit card account terms change notice today. They want to raise my rate to 29.99% also. I am weighing my options at the moment. It's amazing to me that these folks can take our tax money, start making a profit again (a BIG profit), and gouge their customers like this.

The only thing that I am sure of at the moment is that I don't intend to do any new business with Citibank or any of its subsidiaries or operations if I can help it. We even had our old mortgage with them and nearly got our mortgage when we moved with Citi. I'm glad they don't have THAT part of my business any more.

I also intend to write a complaint to my Senators and Congressman since their new "consumer credit protection act" is partly to blame for what Citi and the other big banks are doing to us. What good is a law that said, in effect, you must stop ripping the people off and in a year we will prohibit it?