Citi business credit card interest rate raised on pre-existing balance?

Discuss anything related to interest rates & fees, like balance transfer offers, low rate cards, annual fees, etc.
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legalbeagle10
 
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Citi business credit card interest rate raised on pre-existing balance?

Postby legalbeagle10 » Thu Mar 03, 2011 10:54 am

I have a business credit card with citi. For the first time in years, I was late with a payment by 18 days. In response, Citicard has jacked my card's interest rate up from 14.99% to 29.99% and has applied the new interest rate to my existing balance of $9,000. From my understanding of the Credit Card Act, an interest rate increases can only be applied to existing balances if the payment is over 60 days late. Is this true and does this apply to business credit cards as well or just personal credit cards?

Thanks for your help.


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Mogul of Pineapples
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Postby Mogul of Pineapples » Fri Mar 04, 2011 10:26 pm

I hate to be the bearer of bad news but business credit cards are exempt from the credit card reform. Your best defense here would be to first call up Citi and try to convince them to revert the rate to the original. If that doesn't work than you can explore moving the balance elsewhere if you don't have the cash on hand to pay it down right away.
Disclosure: I am a moderator/paid staff of this site, which does have advertising relationships with some credit cards that are discussed and linked to. Regardless, anything I say is my honest opinion.

Current Cards:
American Express: Blue Cash, Simply Cash Bank of America: WorldPoints Platinum Plus Chase: Amazon, British Airways, Cash Plus Rewards, Freedom, Ink Cash Citi: Thank You Premier, Dividend Platinum Select Discover: More
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