topic Re: Citi is Rate Jacking Me in Credit Cards

Citi is Rate Jacking Me

Anonymous — Fri, 09 Jan 2009 22:38:01 GMT

I have enjoyed a handsome 7.74% but given the economy and despite the love I feel for my Citi card I am compelled to Opt Out of the anymore rate jacking. I am going on a credit diet and intend to lose some "weight". I did quit the candy banks and joined the low-fat credit union

Re: Citi is Rate Jacking Me

marty56 — Sat, 10 Jan 2009 13:13:12 GMT

Dont opt out. Just pay the balance down and then PIF if you use the card. Closing a CC card is never a good idea unless they have monthly and or a large yearly fee.

Re: Citi is Rate Jacking Me

score_building — Sat, 10 Jan 2009 15:32:12 GMT

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 too was strongly considering opting out when i received the citi rj notice a few weeks ago, but luckily they agreed not to rj instead. i just mentioned that i like my card and woud enjoy building my v. good record with citi under the most favorable terms. i was dumbfounded when the account specialist responded that she could stop the rj and instead offered an apr decrease. in other posts, citi responded by reducing the orig. apr and offered a cli.

citi retention dept. back door: 1 (800) 444-2568

Re: Citi is Rate Jacking Me

Anonymous — Sat, 10 Jan 2009 18:43:35 GMT

@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 too was strongly considering opting out when i received the citi rj notice a few weeks ago, but luckily they agreed not to rj instead. i just mentioned that i like my card and woud enjoy building my v. good record with citi under the most favorable terms. i was dumbfounded when the account specialist responded that she could stop the rj and instead offered an apr decrease. in other posts, citi responded by reducing the orig. apr and offered a cli.
citi retention dept. back door: 1 (800) 444-2568

score_building:

I just called that number. I told the representative that I didn't have a good reason to use my Citi Dividend Platinum Select MC: I earn better rewards with Chase Freedom, and my Citi card has the highest APR of all of my major credit cards. He overrode the 16.99% APR ratejack, and I'm keeping my original PRIME + 4.99% APR.

Thank you, score_building!!!

Re: Citi is Rate Jacking Me

score_building — Sat, 10 Jan 2009 19:46:33 GMT

that's really great news psychic, you're welcome and congrats heavan knows they are lucky to have retained someone with your remarkably well established credit record.

i hope the OP has success with citi too. GL!

Re: Citi is Rate Jacking Me

Anonymous — Sat, 10 Jan 2009 22:27:22 GMT

I just got off the phone with them (great back door number BTW)

They are trained to make you believe there is nothing they can do regarding the Change in Terms Notice, however in my case I asked for an account review for purposes of decreasing my APR and it worked. You need to specifically ask for an account review for a lower APR. Not a change in terms reversal, like others have pointed out.

My APR is still 2 points higher than I started with, but not the 19 percent they were trying to raise it to.

Its my oldest card, issued in 1999 and no lates. Its literaly the conerstone of my credit record. I need to make sure this one stays open.

Re: Citi is Rate Jacking Me

Anonymous — Sun, 11 Jan 2009 04:56:55 GMT

From a thread I made a couple days ago

My Citi card definitely just went from 11.99% to 18.99% for no reason. Had the card for over 4 years, never late once. APR should be 12.24% according to the website and since its a variable apr which is calculated by 8.99% + prime (3.25% at the moment) so I definitely wrote them an email to customer service complaining and asked for it to be lowered to at least the 12.24%

Reply message from Citi, same response when I called

Our records indicate your interest rate increased due to a change in your account terms. You were sent notification of the change in terms in November. If you do not wish to accept the new terms, please reply to this message.

Our recent actions are based on the significant changes in the financial markets. Our costs in borrowing money we lend to customers have gone up significantly and we are seeing dramatically higher loan losses and delinquencies for many of our customers. In managing to these significantly dramatic changes we must increase some of the prices we charge to customers.

Thank you for using our website.

Re: Citi is Rate Jacking Me

Anonymous — Sun, 11 Jan 2009 05:16:44 GMT

Just used the backdoor number. At first he said there wasn't anything he could do about the interest rate. After I started talking about a CLI he was talking about the increase then said oh I just found a way to lower your rate, so I'm back down to where I was . Also gave him my information for a credit line increase, which will result in a hard pull but oh well. I don't have any many inquires at all on my report, this would be like my second, so its whatever.

Re: Citi is Rate Jacking Me

mark925 — Sun, 11 Jan 2009 11:51:30 GMT

Anyone who gets one of those notices really needs to call.

I was one of those that got a Citibank ratejack notice back in November saying my APR was going to go from 14.99 to 19.99%. I called them up (at the number on the back of the card, surprisingy) and asked about getting my interest lowered. Without any problem they brought me down to 8.99% + prime - which at the time would be 12.99%.....then I ended up with a CLI which I didn't ask for a couple days later from them. When my statement cut in December I was down to 12.24%.

But it's strange as I've been reading others stories on calling and it seems like some are being told "that's the way it is, there's nothing we can do" and some are having success. It might depend on who you get on the other end.

I just feel sorry for those who won't bother calling and take it as face value.

Message Edited by mark925 on 01-11-2009 03:51 AM

Re: Citi is Rate Jacking Me

Anonymous — Sun, 11 Jan 2009 15:42:35 GMT

mark925 wrote:
Anyone who gets one of those notices really needs to call.

I was one of those that got a Citibank ratejack notice back in November saying my APR was going to go from 14.99 to 19.99%. I called them up (at the number on the back of the card, surprisingy) and asked about getting my interest lowered. Without any problem they brought me down to 8.99% + prime - which at the time would be 12.99%.....then I ended up with a CLI which I didn't ask for a couple days later from them. When my statement cut in December I was down to 12.24%.

Prime rate dropped from 4 to 3.25 on December 16th. Yay!

Congrats on getting the orig RJ reduced! And welcome to the fora!

Re: Citi is Rate Jacking Me

Anonymous — Tue, 13 Jan 2009 23:24:42 GMT

Hello,

The same thing happened to me with my two Citi Cards amd I have never been late. The weird thing is that they gave me a credit increase without my asking for one ($9,100) and that was supposed to be for my great credit history with them. One will now be at 19.99% and I cannot opt out since that is my oldest credit card. (2002) The other one I decided to tell them I would opt out since that one does not expire until 2011 and I could always call them back and decide to accept the terms (12.99%) My fico score is over 680 the last time I checked and I have 9% utilization. Any advice?

Re: Citi is Rate Jacking Me

MidnightVoice — Tue, 13 Jan 2009 23:27:20 GMT

As long as you pif, the rate is no problem. Buy a cup of coffee every few months, allow your score to improve and the credit crunch to go away

Re: Citi is Rate Jacking Me

Anonymous — Tue, 13 Jan 2009 23:40:01 GMT

Don't opt out if these trade lines are helping your overall credit portfolio. Like you mentioned, you don't need citi closing your oldest account.

My advice is to call them again and ask when the new "Terms of Service" go into effect. The very day that they go into effect call them back (using one of the "backdoor numbers" that are on this message board). Ask for your account(s) to be evaluated for a lower APR. They will do this.

If you simply ask for them to reverse the Terms of Service changes.... they will most likely deny you. There are other changes in the new terms other than this rate jack that they want everyone to have..... like different default rates and cash advance rates etc. I chose my battle with this one and got my APR reduced and had to accept the other changes. I dont cash advance or pay late, so it's of no consequence. Good luck

Re: Citi is Rate Jacking Me

Anonymous — Wed, 14 Jan 2009 00:02:31 GMT

I have enjoyed an extremely handsome rate with Citi for much longer than I should have, I have to admit (7.74%). I do not want to close the account, rejecting the rate jack, but I am not sure I can afford not to. I didn't get a raise or a bonus, which doesn't surprise me...a sign o' the times for us all. I love my Citi and would love to keep it and may call to discuss with them. I should have dumped the crummy WAMU when they rate jacked me!!!! That's the one I could do without.

Re: Citi is Rate Jacking Me

Anonymous — Wed, 14 Jan 2009 00:41:55 GMT

@Anonymous wrote:
Hello,

The same thing happened to me with my two Citi Cards amd I have never been late. The weird thing is that they gave me a credit increase without my asking for one ($9,100) and that was supposed to be for my great credit history with them. One will now be at 19.99% and I cannot opt out since that is my oldest credit card. (2002) The other one I decided to tell them I would opt out since that one does not expire until 2011 and I could always call them back and decide to accept the terms (12.99%) My fico score is over 680 the last time I checked and I have 9% utilization. Any advice?

Did you call and complain about the rate increase? I did and they not only reversed the increase, they lowered my rate by 1.25%. I'm now at 6.74, with the recent prime rate reduction. Evidently, many people have had similar experiences.

I do believe that the average credit card customer simply doesn't know enough about the system. For example, my dad was irritated when he saw a notation on his bill, highlighted in pink, that said he had "48,000 points." He thought they were trying to pull a fast one. He was amazed to learn, upon calling customer service, that these were GOOD points, and worth nearly $500 in gift cards to various vendors.

As another example, my husband just got a check for $8.75 in his most recent HSBC card statement. The back of the check indicated that, once endorsed, he would be enrolled in a program that pays 2% cash back, up to a maximum of $100 per year, for purchases. The program, however, costs $59.99 semi-annually. So, you can pay $120 a year to TRY to get back $100. Sadly, I think that far too many people just sign this type of thing without reading or doing a little math.

I think credit card companies bank on that happening, and I think this rate increasing is another example. If just 50% of the people who get the notice do nothing, then the company makes a ton of money. So, it's not that big of a deal to reverse the increase for the few who have the gumption and knowledge to call and complain.

Bottom line: CALL CITI!

Re: Citi is Rate Jacking Me

Anonymous — Wed, 14 Jan 2009 15:39:26 GMT

Hello,

Thanks to all for your great suggestions and also the back door Citi number. I called last night and had what was going to be an increase to 12.99% changed to 6.49% on a card that will expire on 1/31/11. I can always call back prior to the expiration date and accept the "New terms" and the card will not be cancelled.

Re: Citi is Rate Jacking Me

score_building — Wed, 14 Jan 2009 16:19:51 GMT

@Anonymous wrote:
Hello,

Thanks to all for your great suggestions and also the back door Citi number. I called last night and had what was going to be an increase to 12.99% changed to 6.49% on a card that will expire on 1/31/11. I can always call back prior to the expiration date and accept the "New terms" and the card will not be cancelled.

you don't necessarily have to call to accept. my understanding is that it is auto accept if no response from card holder in specified time period. you have to call only to reject the terms if you do not want to accept them. in any case, congrats!

Re: Citi is Rate Jacking Me

MattH — Tue, 20 Jan 2009 04:06:20 GMT

My wife's CITI and my AMEX recently saw rate increases. My chase hasn't yet done so, the purchase APR is still 5.24%. The APR on my CITI has always been somewhat higher, currently 19.990% which I will never pay of course.

Re: Citi is Rate Jacking Me

oracles — Tue, 20 Jan 2009 04:11:24 GMT

Matt definitely call the backdoor number for citi and ask for a review to lower your apr. Many people have done this and received great success.

Let us know what happen

Re: Citi is Rate Jacking Me

Anonymous — Wed, 21 Jan 2009 03:18:45 GMT

I just used the backdoor number and they dropped my rate from 14.99% to 5.9%. I was at 4.9% before the rj, but I'm not complaining.