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Valued Contributor
oracles
Posts: 1,699
Registered: ‎08-18-2007
0

Re: Citi is Rate Jacking Me


itsjustmeibe wrote:

Another Citibank success! I got my letter today, increase to 14.99% (prime +8.99%). This is for my CitiBusiness card I have had for 18 months. The first guy told me that there was no other rate available and to continue to make my payments for 6 months and call back. (I have always made my payments on time). I told him that I have no use for the card with this type of interest and to go ahead and close it. (Gutsy since I owe about $3800, even though I have some brand new Discover & BOA business credit available but not at a decent balance transfer rate). Anyhow, he said he would have to transfer me to an account specialist. The account specialist decreased my rate to 4.99% for 6 months, and kept my current rate of prime + 2.99% after that. This was the first thing he said to me, I didn't even have to fight!

 

What a Forum!!!!!!!!!!!!!


 

WTG, congrats
Established Contributor
Posts: 513
Registered: ‎04-03-2007
0

Re: Citi is Rate Jacking Me

Fused,

 I am sorry about your encounter with the brick wall.

I just noticed something in your post that I had over looked before.

You might have uncovered another piece of the puzzle (how the lenders are going to behave when the new laws go into effect..

 

 

 


fused wrote: 
I did learn a bit of helpful of information, however.

 

"if I want to revolve a balance in the future, give him a call back and he will let me know if something good becomes available."


The major problem that I have with the new consumer credit law is the restrictions placed upon the banks prohibiting repricing of rates on existing balances.

 

It looks that a push is on to raise interest rates on certain customers. 

 

Your CSR might be giving us a glimpse into future interest rate pricing.

 

Step one is to raise rates as much as possible before the new law goes into effect.

 

In the future if a person asks to have a rate reduced he might be offered a "temporary" reduction for say 6 months or so. After that the rate would be the "go to" higher rate.

 

 

Your CSR pretty much told you to call back when you need some money or want to revolve a big purchase or vacation and he will see if there was a lower "promo" rate available.

 

The new law specifically exempts "promo rates" from being included in rules that don't allow a rate on existing balances to be raised.

 

 

 

Established Contributor
Mike14
Posts: 618
Registered: ‎09-16-2008
0

Re: Citi is Rate Jacking Me

Citi jacked me too!  I never look at my APRs because I always PIF, except for a Chase card at 3.99%"for life" (we'll see how long that ends up being) and a Citi card with a BT I did in October that's at 0% for another few months which will be paid by then.  

 

After reading another thread here, I took a look at my rate: 16.99%.  Seemed kind of high, so I looked at my past statements.  From 10/3/08, it was 10.49%.  Then, for November and December, it was 9.49%, DOWN a whole point, the month after my $7K BT and as of January 5, 2009, it's 16.99%!  

 

I was paying double the minimum on this card each month and got tired of the high util, so I used part of my holiday bonus to pay it down $5.5K (from $6.7K to $1.2K, and that's how they rewarded me?  That's terrible, I'm going to call them tomorrow and tell them I'm going to transfer my balance to Chase and close it, and see what they'll do for me!

Wife's FICO Scores, 7/10/09: TU:??? EQ:634 EX: ???
Wife's FICO Scores, 2/13/09: TU:??? EQ:604 EX: 630
Wife's FICO Scores, 2/05/09: TU:??? EQ:592 EX: 630
My FICO Scores, 6/19/09: TU:757 EQ:744 EX:758 (all from MB; EQ Agrees)
My FICO Scores, 3/29/09: TU:755 EQ:746 EX: ???
My FICO Scores, 2/05/09: TU:??? EQ:730 EX: 720
Established Contributor
Mike14
Posts: 618
Registered: ‎09-16-2008
0

Re: Citi is Rate Jacking Me


score_building wrote:

apparently citi sent out 100s of thousands of these notices just recently and quite a few (including me) have already reported success requesting that citi vacate the rj.  why not try your luck and ask citi to reverse the rj  and preserve the account before considering the opt out option. 


 

I don't recall ever getting a notice of this.  If I did, I ignored it :smileytongue:  I'm not REALLY going to cancel, I'm just going to threaten!
Wife's FICO Scores, 7/10/09: TU:??? EQ:634 EX: ???
Wife's FICO Scores, 2/13/09: TU:??? EQ:604 EX: 630
Wife's FICO Scores, 2/05/09: TU:??? EQ:592 EX: 630
My FICO Scores, 6/19/09: TU:757 EQ:744 EX:758 (all from MB; EQ Agrees)
My FICO Scores, 3/29/09: TU:755 EQ:746 EX: ???
My FICO Scores, 2/05/09: TU:??? EQ:730 EX: 720
Frequent Contributor
Cheech
Posts: 282
Registered: ‎03-26-2008
0

Re: Citi is Rate Jacking Me


Mike14 wrote:

Citi jacked me too!  I never look at my APRs because I always PIF, except for a Chase card at 3.99%"for life" (we'll see how long that ends up being)

 


Good luck, because that's the same card they tried to jack for me!  My rate was "guaranteed for life" (which, if you read the fine print, really means "until the card expires.")

 

I kept the so-called "guarantee" that was printed on my statement from months and months ago because I had a feeling I might just need it one day. I read it, verbatim, to the CR who still insisted that unilaterally raising my interest rate in direct opposition to the verbiage on my "agreement" with them didn't REALLY constitute them breaking the agreement.

 

In the end, I got a 1.25% reduction (instead of an increase) in my APR, but I was very disappointed in Citi to see them specifically go back on a commitment they made in writing, and then defend the action. I may not know much, but I know contracts, dammit! :smileywink: Spent 30 years reading, writing and interpreting them.

Established Contributor
Mike14
Posts: 618
Registered: ‎09-16-2008
0

Re: Citi is Rate Jacking Me

[ Edited ]

Cheech wrote:

Mike14 wrote:

Citi jacked me too!  I never look at my APRs because I always PIF, except for a Chase card at 3.99%"for life" (we'll see how long that ends up being)

 


Good luck, because that's the same card they tried to jack for me!  My rate was "guaranteed for life" (which, if you read the fine print, really means "until the card expires.")

 

I kept the so-called "guarantee" that was printed on my statement from months and months ago because I had a feeling I might just need it one day. I read it, verbatim, to the CR who still insisted that unilaterally raising my interest rate in direct opposition to the verbiage on my "agreement" with them didn't REALLY constitute them breaking the agreement.

 

In the end, I got a 1.25% reduction (instead of an increase) in my APR, but I was very disappointed in Citi to see them specifically go back on a commitment they made in writing, and then defend the action. I may not know much, but I know contracts, dammit! :smileywink: Spent 30 years reading, writing and interpreting them.


Did Chase jack your "for life" rate or was this on a Citi card? The Chase offer was on a balance transfer for me on an existing account. I have a feeling based on other things I've read, that I'll be able to get at least two years out of it. By then, my balance should be a lot lower, and hopefully, I'll have more options available if they do jack my rate.

I called Citi this morning. First the lady told me I could opt out. I said I didn't want to, was there a way my rate could be lowered without opting out? After a pause, she said I could get a promo rate of 7.99% for 9 months, so I took it. Once it goes back up, I'll just call in again, if it's absurdly high. So now my rate is 1.75% lower than two months ago.
Message Edited by Mike14 on 01-27-2009 12:55 PM
Wife's FICO Scores, 7/10/09: TU:??? EQ:634 EX: ???
Wife's FICO Scores, 2/13/09: TU:??? EQ:604 EX: 630
Wife's FICO Scores, 2/05/09: TU:??? EQ:592 EX: 630
My FICO Scores, 6/19/09: TU:757 EQ:744 EX:758 (all from MB; EQ Agrees)
My FICO Scores, 3/29/09: TU:755 EQ:746 EX: ???
My FICO Scores, 2/05/09: TU:??? EQ:730 EX: 720
Established Contributor
Posts: 513
Registered: ‎04-03-2007
0

Re: Citi is Rate Jacking Me

[ Edited ]

Mike14 wrote: 
After a pause, she said I could get a "promo rate" of 7.99% for 9 months, so I took it.

 

 Once it goes back up, I'll just call in again,


 

Again there is an example of a promo offer being used to raise the permanent interest rates and still keep the customer in the game..

 

Under the old system, when  deposit interest rates fell we could get our credit card interest rates lowered for the asking.

 

 In the future when interest rates for installment loans fall, we probably won't be able to get our CC rates lowered. We will instead get promo offers.

 

 

 It seems that they are raising the official on going rate as high as possible with out forcing the consumer to "opt put". Even if the consumer opts out, I'll bet some consumers will get an offer to reactivate a card in the future at a higher interest rate after paying off the outstanding balance. If the company doesn't want to acquire higher balance risks with a particular consumer I believe there will be no other offer except to "Opt Out".

 

If the CC company is willing to let a less risky consumer keep the card open in order to raise the balance it can offer a special promo rate for a limited term. That could eventually help the consumer go deeper into debt that will be priced at the higher interest rate.

 

I don't think you will be able to count on new promos the next time. I think that we are in for one big game of musical chairs. One never knows when the lower "regular" interest  rates or "promo" rates (just for the asking) will be refused in the future.

 

We are definitely seeing the new risk based interest rate pricing structure being implemented. 

 

 

The best way for people to protect themselves is to use the temporary lower interest rate, reprieves to make sacrificial efforts to pay down balances and reduce overall debt.

 

I do not trust a "reform" by a bunch of politicians to allow us to stay in debt without pain. The noose is tightening. :smileyindifferent:

 

Those of us with high FICOs, and don't carry balances will not be immune from higher on going interest rates. The banks will not allow us to keep 6% interest rates and $50,000 credit limits when the new laws go into effect.

 

If a current PIFer suddenly maxes out a $50k card at 6% that would create problems for the banks if they could no longer reprice risk by increasing the interest rates.

 

I believe that the PIFers will eventually get interest rates raised. Of course that will keep the 0% offers still coming into my mail box. That will be fine with me. $20-30,000 at 0% interest for 12 months. If not paid in full by the end of the promo period it can be a 29% interest rate for all I care.

 

Of course the banks will also probably pull the old retroactive interest game that the big box store credit cards use. If the promo rate is not paid off at the end of 12 months the entire original balance could possibly get backcharged at the "official" rate of 29%.

 

I think we should consider very carefully how the new laws will actually affect our individual credit  situations and make our plans accordingly.

 

I don't want to beat a dead horse by constantly bringing up the subject. I am afraid that if there is a dead horse, it is consumer credit as it was once upon a time. :smileysad:

 

.  

 

 

Message Edited by CreditAble on 01-27-2009 02:46 PM
Established Contributor
Mike14
Posts: 618
Registered: ‎09-16-2008
0

Re: Citi is Rate Jacking Me

On a positive note, one my other Citibank cards had the luv button available today and I got a $1K instant CLI, with no credit report pull!
Wife's FICO Scores, 7/10/09: TU:??? EQ:634 EX: ???
Wife's FICO Scores, 2/13/09: TU:??? EQ:604 EX: 630
Wife's FICO Scores, 2/05/09: TU:??? EQ:592 EX: 630
My FICO Scores, 6/19/09: TU:757 EQ:744 EX:758 (all from MB; EQ Agrees)
My FICO Scores, 3/29/09: TU:755 EQ:746 EX: ???
My FICO Scores, 2/05/09: TU:??? EQ:730 EX: 720
Senior Contributor
MattH
Posts: 3,245
Registered: ‎04-03-2008
0

Re: Citi is Rate Jacking Me


fused wrote:

jdh0526 wrote:

Fused, and those of you who threatened to close your accounts, do you currently have a balance on your card that you are paying off, or would closing your card be as simple as calling to cancel? Just wondering if they would treat me different if I threatened to close my account (since I have a running balance with them they may think I am bluffing).

 

My discover card has a nice looking balance transfer but after the fees, it is worse than my original 6 percent citibank(but better than my 14.99 percent citibank as of today...) 


 

I have a $0 balance on my CITI Dividends card. I don't recommend you threaten to close your CC account with any CCC if you have a balance and can't pay it off immediately.

 

That is of course true of any threat: one must always be ready to follow through if they call one's bluff.

 

TU 791 02/11/2013, EQ 800 1/29/2011 , EX Plus FAKO 812, EX Vantage Score 955 3/19/2010 wife's EQ 9/23/2009 803
EX always was my highest when we could pull all three
Always remember: big print giveth, small print taketh away
If you dunno what tanstaafl means you must Google it
New Member
matt314159
Posts: 3
Registered: ‎06-15-2007
0

Re: Citi is Rate Jacking Me

[ Edited ]

Hey everyone, thanks for the great info and the time you put into these forums!

 

Citi pulled the same crap with me, on my platinum select card, but it was a whopper...6.99% to 24.99%.  

 

Not knowing any backdoor tactics, I called the frontline CSR, she was pleasant but gave me the same crock about it's nothing i've done, but costs of lending and the changing economic climate, etcetera...I told her such a massive increase was not acceptable, and I would have to cancel the account if there was nothing they could do.  (I do know how to play the retentions game with these kind of companies, just not to the level of expertise you all do!)

 

So they transferred me to barry, a very friendly retentions guy who offered me 3.9% for the next 9 months, which I accepted.  That will buy me some time anyway.  When he was done, he asked me if there was anything else he could do for me....I happen to also have a few other citi credit cards, so I told him jokingly, "you're going to be sorry you asked me that"...and had him pull my other accounts, and he was able to do the same 3.9% apr for 9 months on all three.   We seemed to be able to develop a quick friendly rapport on the phone and he seemed more than happy to help me out.

 

But here's where i Have some questions.   I know that ideally an account review and a 'permanent' apr adjustment would be the best way to go, is there any way I can get them to review my account for that during this promotional period or do I have to wait until september?   I'm not sure how much I would accomplish anyway, given the fact that I have about 80% utilization on all three cards, and my fico score varies between 650 to 670 between the bureaus....so it's not great.  Though my only blight right now is my high usage, which I am in the process of hopefully cutting from $12,000 to at least half that over the next six months, dumping everything I can on it...my guess is that the best thing for me to do is wait, but I'd like to see what you all think, so you can point me in the right direction.  

 

last question, I was under the impression that when you cancelled a card that held a balance, that basically just locked you into your current payment terms until you paid off the account, but the gist I get from you guys seems to be that it might actually be payable in full when the account is closed.  Can someone clarify that for me?  

 

My oldest card is the platinum select they tried to ratejack, I have had that since I was a sophomore in college in 2002.  So I wouldn't want to close that account anyway.  

 

My payment history with Citi is excellent, never late, never over the limit (though I know my utilization is through the roof compared to what you all are used to, but I'm starting to get very serious about tackling this debt and gettig it paid off as soon as possible.  Any comments or advice you have in regards to my post and situation are welcome, and appreciated.  Thanks!

Message Edited by matt314159 on 01-29-2009 10:59 PM

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