This news story was included in someone else's recent blog update
(link). Here's the key excerpt from the news story; it's a public statement from Monday November 17th from the Vice President of Public Affairs at Citi:
"Citigroup to raise credit card interest rates"
"In this difficult market environment Citi is continually evaluating its business to ensure that it is performing as effectively and efficiently as possible. The industry has recently experienced an unprecedented market cycle with severe funding dislocation and significant consumer credit deterioration driven by the mortgage crisis and rising unemployment.
In light of these unprecedented developments and others, Citi will be repricing a group of customers in our Citi-branded consumer credit card business in the U.S. to appropriately manage these risks. These customers base rates (purchase and cash usage APRs) have not been repriced in at least 2 and in many cases 3 years, and each customer will have the ability to opt out of the repricing and continue using his or her card until it expires. The cardmember will be able to pay down balances under the old pricing terms. We are carrying out this repricing in order to continue lending in this environment.
At Citi, we remain committed to serving as an advocate for our customers, offering them a variety of tools and resources to use credit wisely. We encourage our customers to contact us with any questions or concerns. As a leading advocate for industry best practices, Citi continues to support efforts to increase transparency within the industry so that clients can compare the terms and practices of credit card lenders and make informed decisions."
Message Edited by MojaveMoon on 11-29-2008 02:03 AM
