EDITED - Citibank wants 36.99%?? I about LMAO

[SmileyRose]

Plus a 3% "fee" in any month I did not carry over a balance from the previous month. The only credit card I have ever had. Pay it off every month. The interest rate is irrelevant to me. My previous rate was 6.99% - of course I called to opt out. Citibank has gone noodles. Absolutely noodles. The only people who are going to pay that are either not on the ball enough to pay attention or NEED their credit available and will take the hit (which automatically makes them a poor credit risk IMHO).

Folks like me, the low risk folks they need to spend money on the thing so they can make the merchant fees when everyone else has been forced into bankruptcy because of high rates, are going to bolt.


Noodles, absolutely noodles.

EDIT

I took a 2nd look at the Citibank info and the actual rate is 29.999% (yes it has 3 places to the right of the decimal) - it then goes on to tell me all the new fees I have to pay with the end result being an estimated 36.99% APR. SORRY peoples - you can't believe how much legaleze they smashed onto this little 3x5" piece of paper. I saw the chart on the back bottom of the page and took that -- but TECHNICALLY they can tell the US of A gubmint they are only sticking me with 29.999% - under the 30% max mandated by Congress in 2005

[varelse]

1. Legal loan sharking is a growth industry, apparently

it's "recession-proof"!

[undeterred]

2. Maybe we are witnessing the end of the credit card.

[a la izquierda]

3. Whew! I better make sure that Hubby...

has checked in on his for both Citi and WaMu...he carries a balance, but hasn't made a single late payment.

[SmileyRose]

7. Mine came in the December bill and easily missed tucked in the leaflets

you know all that "get a free $4.95 pen" crap they always throw in there. It would easily have been mistaken for that garbage.

They tried very hard to sneak it by, but I have an accounting brain.

Edit to add, for Citi, also look at the bill itself VERY CAREFULLY. In the mouse print they also put an easily missed comment about "account changes" - that's actually what got my attention and I went back and rummaged through the pile of crap they throw in the envelope.

[a la izquierda]

18. Thanks for the information!! N/T

[Sex Pistol]

4. Join a credit union. You will always be treated fairly.

[sufrommich]

8. I agree.I don't know why anyone uses banks if they

don't have to.

[flvegan]

5. That's not interest, that vigorish.

Isn't that usury?

[rucky]

6. Is that even legal?

[valerief]

9. In BushWorld, usury is not only legal. It's encouraged. So isn't poisoning the soldiers. nt

[SmileyRose]

26. yes it is

I thought the feds had passed a maximum 30% but I have now learned that measure failed. I have looked at the rules for Georgia and there is no limit at all. The state says I am simply bound by my cardholder agreement.

[muriel_volestrangler]

10. 'a 3% "fee" in any month I did not carry over a balance'?

3% of what? If you didn't carry over a balance, what can they charge for? 3% of your spending in that month? If so, then it moves from usury (when I opened the thread, I didn't think it'd be about credit cards, because interest rates never get that high, I thought, unless you're dealing with gentlemen with knuckle-dusters), and into 'protection money'.

Seems they must want to drive off sensible customers altogether. Leave themselves with just, as you say, the desperate or unwary.

[SmileyRose]

11. It said 3% of my average daily balance.

Gawd only knows how they calculate that.

[muriel_volestrangler]

15. It won't be far off what you spend each month, on average

It would depend on how quickly they send you each month's bill, and how quickly you pay it off.

But, in a way, it means they want to charge you 36% per annum on the average amount outstanding - 3% per month * 12. They seem to be taking the attitude that you 'sneakily' paying the bill when they ask you to is a way of getting free credit, so rather than working out the interest after you've paid, they'll work it out from the moment you use the card in a shop. Rather like they charge for cash advances.

You've done the right thing to get out of it, I;d say.

[Obamanaut]

16. Shortly before I paid off my card, the statement showed

balance = $xx.xx, so I sent a check for that amount. The following month the statement showed balance = $x.xx (a very small amount.) I called and the explanation was that the earlier balance was accruing interest between the statement date and the date the pmt was rec'd.

I asked the representative how much they required of me on my next check such that they would never hear from me again, sent the check for the amount on the statement, cut up the cards, and closed the account.

[amerikat]

12. Citi Bank is committing suicide.

I have a Citi Bank card. carry a small balance, never late and they want me to
sign off on my 9% rate for an 18%+ rate? I think I'll just let the sun set on
that offer. I'll pay it off at the current 9% rate, and never use the card again.

I think they are attempting to scare folks with big balances that figure they can't
pay off the debt within the time frame that the higher rates take effect. So Citi
is screwed either way.

They are attempting to become uncompetitive in the lending business, or they are way
ahead of the pack. I think they will just die a quick death as a lender or struggle
by as a lender of last resort.

[burythehatchet]

19. Shitti Bank cannot kill itself soon enough

[amerikat]

20. Citicide

thank you for that!

[Double T]

13. Citibank is a desperate corrupt corporation that should be put out of business.

Bailing out these desperadoes has only emboldened them to be even bigger criminals.

[emilyg]

14. I have one. Thanks for the warning.

[Cassandra]

17. Thanks for calling this to our attention.

I found my notice in last month's bill. There's nothing about the 3% fee but the 29.99% is there.

[sarcasmo]

21. I posted about this a few days ago about HSBC not wanting to lower my 28.9 percent rate.

These predators are getting extreme, soon it will be fifty percent.

[pinniped]

22. HSBC are the biggest scumbags out there.

I canned them after they tried to increase the rates.

[sarcasmo]

23. They wouldn't lower my rate on two different cards, closed them both.

[Cid_B]

24. I told Citi to go F themselves

They were always my holdout card for emergencies. A few months ago they had a security breach and had to cancel my card without telling me. 4 months later with $1.28 on the card and 200 bucks of late fees I didnt know about I railed into em on the phone and promptly cancelled the card. Felt good too.

[sarcasmo]

25. Late fees, and jacking up the interest rate is how these sharks make money.