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CitiBank, Sioux Falls, South Dakota Complaints & Reviews - Credit Card Interest Rate Hike

CitiBank Contacts & Informations

CitiBank

Posted:    JMS1234

Credit Card Interest Rate Hike

Complaint Rating:  100 % with 12 votes
Contact information:
Citibank, N.A
701 E. 60th Street North
Sioux Falls, South Dakota
United States
Today I recieved a notification from Citibank that my two credit cards interest rates will increase to 29.99%. This increase is basically doubling my current rate. I have been a Citibank customer for 14 years and have never been late on my accounts. When I called to speak to a representative to ask why this was happening I was told that it is an across the board increase. They said they have to increase their pricing due to the economic environment and it had nothing to do with anything I did. Needless to say I am completely shocked and honestly dont know what to do. I have a significant balance on my card and dont want to opt out of the program because they will close my account. That will tarnish my credit report. If I keep the card my monthly minimum payments are going to be so high I dont know if I will be able to afford paying it. I cant believe a company that is nearly 40% owned by the american people due to the recent economic bailout would treat its customers in such a horrible way. Furthermore, it is obvious that they are doing this rate hike now because of the new law that will go into effect in February 2010 banning such interest rate increases . Why isnt there more outrage out there?
Comments United States Credit Cards
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 19th of Jul, 2009 by   Pattycake64 0 Votes
I have yet to receive this notice, but I don't doubt that I will very soon. This is shameful behavior, but I am not going to close my Citi account, since my credit limit is high. I'll keep it open and use it to buy stuff here and there, but they won't get another penny in interest from me.
 20th of Jul, 2009 by   Chsmith 0 Votes
I have received the same notice in the mail on my citibank card!! 29.99% I too have a high balance on my card. I have to close and stay with the current terms because I cannot afford to pay the higher interest rate on the remaining balance. But MARK MY WORD... I WILL NEVER DO BUSINESS WITH CITIBANK, CITIGROUP, CITIFINANCIAL or ANY OTHER COMPANY ASSOCIATED WITH CITI AGAIN!!!
 20th of Jul, 2009 by   Jon S 0 Votes
I also received this notice in the mail... and I was told the exact same thing you were. I called and told them they were insane, 13.9% to a minimum of 29.9%... no way. I've never been late. I told them to close the account and remove me from any mailing list the company has. I will NEVER do business with CitiBank again. Ever.
 20th of Jul, 2009 by   John Z 0 Votes
I got a letter today also. My rate is going from 5.99 to 14.99 after being a customer for 10 years with not a late payment nor ever coming close to going over half the credit limit. I'm debating between opting out and keeping my rate or maxing the card and stiff them. It's gotten to the point with all of these bailouts and what not I don't care about the ethics of it anymore. They can all go to hell as far as I'm concerned.
 21st of Jul, 2009 by   JL62 0 Votes
I also received the change in terms notice in the mail and the change is more dramatic than those submitted previously. I had a variable rate of 5.49% plus libor which makes the current apr 5.78%. As of August 4th my apr increases to 29.99%, which is an increase of 418%. Yes I do have a significant balance, however, my monthly payment will increase from $375.00 to approximately $870.00. That is $70.00 a month more than my mortgage payment. I have been a cardholder since 1990 and never had a missed or late payment. My card is also imprinted on the front "charter member" which is supposed to mean I am a good customer. I have to ask WHAT BUSINESS RAISES IT RATES OR FEES BY 418% IN ONE FELL SWOOP THAT HAS SUCH A DRAMATIC IMPACT ON ITS CUSTOMERS?
 27th of Jul, 2009 by   Angryx2 0 Votes
I have emailed the local news stations asking for an investigation, emailed my Senators/Congressmen and the White House. I suggest you all do the same.
 28th of Jul, 2009 by   Yciti 0 Votes
I have the same story! i called them today and all they told me : "write us a letter"... i've been with them for 2 years! and this rate hike is forcing me to either change the bank :(
 5th of Aug, 2009 by   S. Harris 0 Votes
Got the same notice. Customer since 1995. never been late credit limit of $30k.
Will it close out
 17th of Aug, 2009 by   Edywam 0 Votes
I have been a customer for 15 years with citibank. When they increased my interest rate to 29.9% I was shocked and in disbelieve because I have never been rate. They recieved a bail out from our taxes and they still want more. Who will bail us out? I have decided to never use a credit card associated with citbank. I will do whatever I have to do to pay off this card and as long as I live I will never do business with citibank. Ever.

I will write the Congressman and the Senator and I will also write State Attorneys to stop them doing any shady business in the State. We are all reposible for what Citibank has become. We need to work together and let them know they will not benefit from this. Do not use your Home depot card or your Sears Card. Don't even shop there.
Thanks
Edward
 18th of Aug, 2009 by   dmplucas 0 Votes
i just got my notice yesterday. Im opting out- i have never been late on my payments either. The choice is pay the high interest or they close your account. If you accept high rates- you might not be able to make payments which will wreck your credit. If you close the account to avoid high interest- it wrecks your credit. Im not willing to take the chance on getting behind in payments. I'd rather close the account. Screw citibank. I hope they go out of business after this.
 18th of Oct, 2009 by   drinbkk 0 Votes
Same here.. and what makes this even worse is they are trying to back door 100s of millions in "bonuses" to their top execs for 2010/2011 even though they nearly destroyed the company with their incredibly poor management. You can opt out and you card will remain active under the current terms until the card expires.
 19th of Oct, 2009 by   rcaldera 0 Votes
Please, please, please... everone write their senators, congressmen/women, newspapers, blogs, etc... about this! Complaining on this website won't change anything. I wrote all of the above. If enough of us write to the right people we will be heard and things will change. This is still a democracy and the politicians, as much as they are fueled by lobbyists, have no choice but to listen to the majority. WE HAVE TO BE HEARD!!
 21st of Oct, 2009 by   carlo2009 0 Votes
I guess the only "good" news in all of this is as the old saying goes, "Misery loves company"!!! I have had a Platinum Select CitiBank Mastercard since 1987, never missed a payment and more often than not paid more than the minimum monthly payment due and paid it ON TIME!!! So, what do I get in the mail yesterday, the exact same notice than my APR is going UP to 29.99%, effective November 30, 2009. Now, I realize that in a free market society companies are free to charge what they please and as a customer I have the right to not do business with a company if I don't like their policies, etc. But, I do expect to be treated fairly and with honesty and respect and in light of WE bailing out Citi this is way out of bounds!!! I have to agree with the others that strongly suggested we right our congress person and voice our displeasure with how Citi is treating their loyal customers, in as much as WE bailed them out and have funded their survival!!!
 23rd of Oct, 2009 by   miscellaneous 0 Votes
I received the same 29.99% letter. Been an excellent customer since 1984. Since I had a zero balance, I called them up, and became an ex-customer. Why did we give these people our tax dollars?!
 24th of Oct, 2009 by   UrbyTuesday 0 Votes
long time customer. suddenly 29.99%. long time customer no more.
 24th of Oct, 2009 by   twothoughts 0 Votes
we pay for them (billions in bail-out $$) to treat us like this... totally wrong. Who do we complain to - sent a memo to my senator but want to know how we raise this issue higher. btw, the banks are also getting their $$ at the lowest rates in history. Very sad we put up with this from the banks.
 30th of Oct, 2009 by   Screw Citi 0 Votes
I too received this letter. I am a Citigold customer with a lot of money sitting in my bank accounts. I have banked with Citi on two continents. I have had to research the effect of a potential FDIC seizure of Citi a couple of times so that I could tell my wife our money was safe. I do not carry revolving balances on my credit cards -- both of which I have had for more than 20 years. When I told them I was going to move my entire banking relationship over this bullsh--, they basically shrugged their shoulders. I will be glad to move my money and close my cards, and I will NEVER do business with Citi again.
 10th of Nov, 2009 by   Sickandtired of bank corruption 0 Votes
I received this letter today. For no reason my rate was raised from 10.24% to 29.99%! I was forced to "opt-out". Nothing for nothing but I would think customers would be more apt to pay off a balance on on open account rather than on a closed one. I'm considering telling them to pound salt...and not pay them for a year and then settle for a much lower amount. Yeah it hits your credit rating but lets face it...these days everything is hitting your credit rating negatively. I filed a complaint with the Federal Reserve and I urge everyone to do so. Citibank got a huge bail-out with OUR money and now they commit this fraudulent act? They should not be allowed to get away with this. Here's the website to file a complaint with the Federal Reserve. http://www.federalreserveconsumerhelp.gov/
 17th of Nov, 2009 by   MrsRRPhillips64 0 Votes
I am shocked to see so many people having the same issue. I too have had the exact same thing happen and we never carry a balance and have never been late. We all need to get together and file a complaint. Citibank is becoming corrupt and their customer service is abominable. Everyone file a complaint...that is the only way to get attention and stop the madness.
 23rd of Nov, 2009 by   Kevin citi stinks 0 Votes
I just got my letter today too. The place to file a complaint is not with the Federal Reserve but the Office of the Comptroller of Currency. Call them at 800-613-6743 or go to www.helpwithmybank.gov. Assuming that this rate hike strategy is completely legal and within the cardholder agreement, there is not much that a complaint can do though.

The best way to fight back and let citibank know how terribly we think of this is by publicly denouncing them, pulling all money you have with citibank or any of its affiliates and let any affiliate or sponsor or advertiser associated with Citibank know that they will not be getting your business solely on the basis of their association with Citibank.

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