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Established Member
Posts: 122
Registered: ‎04-27-2007

Cancelled card instead of paying their high rate...

I have investigated / called many CC companies this a.m..  When Citi gave me two options....pay high rate and keep card, or cancel card and keep lower rate, I decided to call and talk to them today. I  got nowhere.  Those were my only options.  I then called my other CC companies to see about transferring my citi debt to other lower rates with other CC companies, but they charge a fee to do all that so there is another expense/fee they want out of us.  I decided to call Citi and cancel card.  They said my 11.2% rate will stay if rates do not go up!  They say I will get a letter confirming I opted out.  I then called customer service again and gave them the CC # I just cancelled and the lady told me it was cancelled already and could not see anything on my account, so it was done.  I will now get this card paid off ASAP and never get a card w/Citi and hopefully no other companies.  Now I just  hope my other CC's do not go up to 29%.  We all have to cancel our cards and stop them from stealing our $!!! 
Senior Contributor
smallfry
Posts: 4,831
Registered: ‎04-20-2007

Re: Cancelled card instead of paying their high rate...


dee wrote:
I have investigated / called many CC companies this a.m..  When Citi gave me two options....pay high rate and keep card, or cancel card and keep lower rate, I decided to call and talk to them today. I  got nowhere.  Those were my only options.  I then called my other CC companies to see about transferring my citi debt to other lower rates with other CC companies, but they charge a fee to do all that so there is another expense/fee they want out of us.  I decided to call Citi and cancel card.  They said my 11.2% rate will stay if rates do not go up!  They say I will get a letter confirming I opted out.  I then called customer service again and gave them the CC # I just cancelled and the lady told me it was cancelled already and could not see anything on my account, so it was done.  I will now get this card paid off ASAP and never get a card w/Citi and hopefully no other companies.  Now I just  hope my other CC's do not go up to 29%.  We all have to cancel our cards and stop them from stealing our $!!! 

 

Good luck. In the future it might be better to call during the week during business hours and speak to a credit analyst.
Established Member
Posts: 122
Registered: ‎04-27-2007

Re: Cancelled card instead of paying their high rate...

I did call Fri when I first got the letter and got the same answer from them.  Two optioins only...nothing else they could do.  Today I called to just talk about what will now happen to my lower rate when I do cancel the card and then I called my other CC companies.  They did transfer me to and english speaking manager today, so that was good. This was the best choice if they only give you two options and two options only... 
Senior Contributor
smallfry
Posts: 4,831
Registered: ‎04-20-2007

Re: Cancelled card instead of paying their high rate...

Sadly they left you no choice.
Senior Contributor
creditwherecreditisdue
Posts: 4,923
Registered: ‎04-19-2009

Re: Cancelled card instead of paying their high rate...

If it doesn't have a fee I am not closing it. Period!

 

Fortunately I can move any possible RJ'ed balance quickly or just pay it off. Avoiding exposure to an RJ is the name of the game these days. The best way of doing that is to keep your UTIL way down!

Regular Contributor
ExcellCR
Posts: 153
Registered: ‎07-10-2009

Re: Cancelled card instead of paying their high rate...

My util under 10%. Have PIF for over 10 yrs except for a brief 4 mo period a few yrs ago with a promo Discover rate. Been cardmember of Discover and Cap 1 for 10 - 15 yrs. Discover RJ from 9.24V to 12.99V and Cap 1 from 6.9F to 15.9V this yr.
Senior Contributor
creditwherecreditisdue
Posts: 4,923
Registered: ‎04-19-2009

Re: Cancelled card instead of paying their high rate...


ExcellCR wrote:
Discover RJ from 9.24V to 12.99V

I would not consider this an RJ. It is a rate adjustment, but nothing severe.


ExcellCR wrote:
Cap 1 from 6.9F to 15.9V this yr.


This is an RJ. Seems very in line with the reports that have been made regarding Cap1 cards.

 

There will be a whole lot of this kind of thing going on between now and the start of enforcement of the new CC regulations. That date is 01JUL2010 unless some type of legislation is passed that imposes an earlier date. The CCC's with the riskier portfolios, like Cap1, will probably be imposing the greater rate hikes. This is going to be a time of great turmoil - if the APR changes are not obviously tied to specific usage patterns and you do not have an exposed balance it is probably best to let it go and keep the TL intact. After the storm passes and competition starts again those APR's will come back down as easily as they went up if you remain worthy.


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