Citibank N A Complaint - Unacceptable Credit Card Rate Increase
I received a letter from Citibank stating my credit card interest rate was going from 8.9% to 15.9%. The letter stated that if I don't agree to the new rate I could call and opt out. I was mystified as to why this would be happening. I have a stellar credit rating, I've never missed a payment and I pay the balance in full every month.
I called the number mentioned in the letter and I was told by the representative that the rate hike was not due to my banking practices or credit issues, but that it was a "company wide" initiative. I asked if they could do anything about getting me a better rate than 15.9% and I was told they could probably offer me a better rate, but it would still be higher than the original 8.9% rate. At that point I was so frustrated that I just told them to cancel the card.
If anyone wants to keep their cards, I suggest calling Citibank to see if you can negotiate a lower interest rate even if they've told you in writing that it's going up. They seemed willing to drop it a bit, but like I stated, they were not willing to set it at the original rate. Personally, I opted out just out of principle.