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CitiBank Credit Card Complaint - Credit card rate hike
Complaint
Citibank raised my interest rate to 29.99% for no good reason. This all happened just before the Obama Credit card act passed and went into affect. I was a long term good customer and paid each month on time and more than amount required and had a rate of 12.99%. A Little high but, oh well, I paid. Then for no good reason, they raised my rate and closed my account. The only reason they will give me is that I am a "potential risk". So I refuse to pay anything at all to them!! and have told them so!!! My credit is borderline any way because of them. They call me every other day asking for payment and I tell them no way until I have in writing a better rate than 29.99%. So far no one from Citibank will help me. It's outrageous that banks can get away with this. Alot of good the Credit Card Act did consumers. It just gave the credit card companies the time which they used to review and raise rates.
Comments:
Posted by justcuz on 2011-06-15:
There is a reason your interest rate was raised to the max amount allowed, and you would have received notice with an explanation.
Why in the world would you want to risk your credit rating going down even further by not paying anything at all? If the account is closed now, call them up and work out a payment arrangement. Refusing to pay and doing nothing doesn't hurt them, it hurts you.
Why in the world would you want to risk your credit rating going down even further by not paying anything at all? If the account is closed now, call them up and work out a payment arrangement. Refusing to pay and doing nothing doesn't hurt them, it hurts you.
Posted by bcd on 2011-06-15:
Refusing to pay on the account supports their claim that you are a risk. You may want to reconsider that decision.
Posted by bob93 on 2011-06-15:
bcd is right, the last thing you want to do is stop making payments.
Posted by trmn8r on 2011-06-15:
"My credit is borderline any way because of them."
This statement is revealing, in that you state your credit is borderline (regardless of why it is). This is probably why your rate was increased.
The original rate of 12.99% is as outrageous as tthe 29.99% figure. 12.99% was appropriate back iin 1982, but not now. If I had a 12.99% rate, I'd pay down my balance to 0 so I no longer paid any interest.
If you are going to refuse to make payments to the bank, they will stop calling you and the collection agency will start calling you. This will trash your credit even more.
This statement is revealing, in that you state your credit is borderline (regardless of why it is). This is probably why your rate was increased.
The original rate of 12.99% is as outrageous as tthe 29.99% figure. 12.99% was appropriate back iin 1982, but not now. If I had a 12.99% rate, I'd pay down my balance to 0 so I no longer paid any interest.
If you are going to refuse to make payments to the bank, they will stop calling you and the collection agency will start calling you. This will trash your credit even more.
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