Why Did Citi Raise My Credit Card’s Interest Rate?

citi logoMany are asking why Citi raised their APR – often for no reason – to a higher interest rate. Well, you are not alone. They have raised rates on up to 15,000,000 US accounts. After the Financial Times broke this story, Citi responded claiming they are the rate hikes were part of their “regular account reviews.” Well, I suppose that makes sense if you consider it’s “regular” to raise an APR by nearly 24%, which is the average increase seen on their co-branded cards (such as the Sears card) from the first of the year through April, for customers who carried a balance.

It is true that credit card defaults are occurring at a record rate right now, but it appears Citi is being more aggressive than its competitors in raising rates. The other important point they should remember is that we, the American taxpayers, bailed them out big time. In fact, we took on over $300,000,000,000 in liability to keep their company afloat… and this is how we are repaid?

[We reported in May about B of A is doing pulling similar shenanigans. Check out the letter they sent out as their crazy justification for Bank of America cutting credit limits.]

Written July 2009

 
Comments
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Citibank raised my rate to 19.99% due to no fault of my own. To add insult to injury, they sent a pre-approved offer with a 0% introductory rate to my home addressed to “Goober Walker”. FYI, Goober Walker was the nickname of my 12 year old Shih Tzu!!!! Not even her real name!!!!! Maybe if Citibank prescreened it’s credit clients a bit more thoroughly, they wouldn’t have to jack up our rates to cover their bad decisions!

i too had my rate changed from 7.740 to 29.99.
I have filed a complaint on them with OCC.gov, (office of the comptroler of currancy as was given on Clark HOward show. the web site is occ.gov then file complaint. they are ligament. I had perfect credit like most of you however they advised me to close account which in turn would lower my credt score. like most was never late mostly early never over limit, but was advised hadto raise rates to continue offering credit. If close account goes against credit.

I thought it was unfair as I have a perfect record with Citi Bank. Had very large credit limits on 3 cards with only one with a balance. They notified me they were raising my APR from 7.99 to 15.99%. I had several medical bills that topped 20K I had put on the card just prior to the first raise in my APR. I was paying it off rather quickly despite the 1st hike. I just got notice they are now raising my card to $29.99%. This has gotten absurd now!! Cleaned out most of my savings and paid them in full and just mailed my certified letters to close out all of my Citi Bank Cards including Home Depot and Sears.

If everyone that is able to do the same, we could cripple them financially as they are doing to so many now due to the economy. Still blows my mind that they are doing this to all of us that have been excellent customers after all the bailout money I am sure they blew. Never do business with CITI Bank!!

I think it’s absolutely ridiculous what citi card is doing to the american public. Especially those people who have worked hard to maintain an outstanding credit history and pay their bills on time every month. It’s appalling that we are repaid this way after Citi was bailed out from the government. They should have let them sink. I am closing my account and will never have an account with Citi again. I’m hoping others will follow my lead.

I just received my statement from Citi and my rate showed 29.99, with no explanation of the rate change from 7.99%. What is going on? I have never been late on this card and just started having a balance. Called Citi and they said I could keep the rate at 7.99 if I “OPT OUT” and have the card closed. Is this legal? My credit rating will go down….

I was just advised today – that my APR is going from 7.99 to 29.99. I use this card all the time and never have been late on a payment. Plus, I always pay more than the minimum payment. How can this happen – legally? We are all being robbed. I closed the card out immediately. Thanks alot CITI – we will remember this! NO MORE BAILOUTS FOR CITI!!!!!!!!!

Citi has way to high of APRs as it is.

Did the same thing to me, fortunately I don’t use the card.

As a UK citizen, it boggles my mind the American way of doing business. If you give out handouts the companies should be accountable for them and respect such.

I stopped using the Citi Dividend Miles card after they got rid of the 5% cash back on gas, groceries, drugstores. Without it the card is useless.

that is total BS