Citibank Sticks It to Customers -- and Congress

Submitted by Anne Landman on

fist of money Citibank is dodging newly-enacted federal laws aimed at protecting consumers from unfair credit card company practices. The new law prohibits credit card companies from raising interest rates whenever they like, on short notice or no notice, and for no particular reason. To get around this, Citi mailed out letters announcing it was raising its rates for all of its customers to its bad-creditor rate of 30 percent, and telling customers that they are eligible for a "program" that lowers their interest rate back down to the previous rate they had been paying. The only catch: if they miss a payment their rate will zoom back up to 30 percent immediately and retroactively -- exactly the kind of behavior the law sought to end. Citi believes their behavior is legal because they are calling their new policy a "program" rather than a "rate." Citigroup customers only have only two options: go along with Citi's new "program," or pay off any remaining balance, cancel their credit card and try to find a different company.

Main Source: 
The Washington Independent, February 9, 2010
Topics: 
Banking
Corporations
Economy

Comments

Judith replied on

I received the same letter a few days ago and just got off the phone. I canceled my AT&T Universal card which I held since 1992. I have a low interest special offer balance which will be repaid this year. I won’t do business with a company that has no ethics! I was planning to use this card after the balance was paid. I guess that on time payments and living up to my end of the agreement for the offer that THEY! marketed isn’t good enough and will deprive an executive of a portion of his bonus so that he won’t be able to get a larger yacht! At this point I won’t put up with any of this bad behavior. Go to your room Citibank and think about all the good customers that trusted you to do the right thing…
Shame on you!

Srini replied on

I have Citi NRI account for th epast 10 years with Citibank. Recently I noticed a deduction of INR1.44 for some educaiton cess and not sure why and its deducted based on the service charge.. When I called the customer service, they begging "sir its just one rupeee sir and its going for education..." Iam not sure whose education is going and where and when and how.. so I asked to confirm if I authorized to deduct the amount and they cannot able to provide a proper answer even after 4 days. Try to reach some managers and that indain call centers no managers at work! US Govt paying big bucks for bailout money to citibank and no managers!
Waiting for resposne from the managers and lets take a legal action on Citi! Its un-ethic to deduct amount without knowing customer. Its called cheating, robbing in plain words!

Anne Landman replied on

Citibank is deducting money from your account for some educational pursuit without asking you? That's incredible. I hope you do pursue it.

Anne Landman

Filing Back Taxes replied on

All this is just an exploitation of customers. According to new law the credit card companies cant raise the interest rates whenever they like or on short notice or no notice or without any reason. But City Bank is doing the same in the name of “program”. Its really shameful for the bank like this to adapt such practices and make the concept of credit card a tool to make enormous money. I also canceled my card due to these reasons. Even after canceling the card and telling the reason for the same, I used to get the calls from City Bank again for the same credit card for a long time. Its just one type of mental harassment for a person like me.

Tax Attorney replied on

Thank you for the sensible critique. Me and my neighbor were just preparing to do some research about this. We got a grab a book from our local library but I think I learned more from this post. I am very glad to see such great information being shared freely out there.

Sara Zerr replied on

I am disgusted at these creditors. I thought that when the government bailed them out it was supposed to increase the money supply but instead the banks are just holding the money and sticking it to the customers. Honestly, how is anyone supposed to rebound from this awful recession if we keep getting hit with low blows. I agree that creditors have a right to increase rates for those who don't make payments, but to increase it to 30% for everyone? That's absurd!

Andy S replied on

Citibank closed my Business Card Account that was in good standing. Never had a late payment and paid my balance every month. Without warning they closed my account and took 87,000 rewards points. That's equivalent to $870. I called them and they said there was nothing they could do.

I spoke with Lisa and told here I had many cards with her and charged over 300,000 on my other cards that were not closed. I told her I would close my savings account, checking account and all my credit card accounts if they screwed my like this. She said she didn't care and could do nothing. Bye citi, I will never do business with you again.

the person I spoke to was:
"Lisa - Manager customer service, citibusiness cards, 1-800-750-7453
ID 7415"

I am closing all my accounts and taking my business elsewhere,

Brizie replied on

CITI bank is full of scum that's trying to make money however possible and they do not care a good, long time customer that pay on time and triple than minimun payment. The recommend that nobody consider this company for credit or anything.

pru76 replied on

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gecko morph replied on

Citibank is deducting money from your account for some educational pursuit without asking you. I just want to know more on this issue. Thanks.

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