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Citibank

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Dave of wellesley, MA November 19, 2009

Back in 2000 AT&T Citibank offered me a 1.99% lifetime offer. I took the offer and transferred about 25,000. I continued to pay down the balance at 1.99% and had no problems. The APR for purchases was 18.99%, however I never charged anything on the card and therefore it did not matter whether the APR percentage was high or low. Yesterday I received a notice that they are going to increase my purchase APR from 18.99% to 22.99%. The 22.99% is tied to prime. The result is that the 22.99% can increase without limit, but will never drop below 22.99%. These types of rate structures are called "Partial Variable Rates." They are not fixed, but they are not variable. They are a hybrid.

Since I don't use the card for purchases, the increase in rate is not a problem. What is a problem is that the notice did not specify as to whether the increase in rate applies to future purchases only, or whether it also applies to outstanding balances. Also, it does not specify as to whether it applies to promotional rates. At least with Chase’s change in terms notices the notices clearly stated that balances with promotional rates were unaffected and also specified that the increase in APR applies to both future purchases and existing balances. Of course I can call Citibank and ask them whether it applies to existing balances and to promotional rates. However, unless I get it in writing, what they say over the phone is worthless.

So I decided that I would end my 14 years with Citibank and opt out of the rate increase and therefore ensure that I continue to pay it down at 1.99%. I am curious if there are other people out there who had the 1.99%, 2.99%, 3.99% etc… lifetime rates, chose not to opt out of the rate increase, and then found that the rate increase did apply to their promotional rate balances. Are there people out there who lost their promotional rates?

nidal of Bel aire, KS November 19, 2009

i have been with citi bank since 1986 and i always pay more than the minimum payment within 2 days from receiving the bill. My credit score is higher than 99% of people in USA. On may 2009, citi increased my APR from 13.99 to 18.99 APR. Now, i just rexeived a letter from CITI that they will increase my interest to 24.99% APR next 12/20/09. I tlked to them twice but no luck.

Thomas of oakland, CA November 17, 2009

CitiBank won't cash it's own checks! I attempted to cash a Citibank check a friend wrote to me at the Citibank branch. After asking me to sign the check and then entering my California Drivers License details into the computer, and asking me how I wanted me cash, the teller decided she also needed my fingerprint. When I refused she, then her supervisor, and then the branch manager refused to cash the check.

Paul of Ann Arbor, MI November 16, 2009

I've had a Citibank card for over a decade, have never missed a payment and have excellent credit rating. Today I received the (infamous) letter telling me that the interest rate is doubling to 19.99%. I pay my balance in full each month, so I do not pay finance charges, but this rate is ridiculous. It seems that they are laying a trap for me in case I inadverdantly miss a payment. Or perhaps they're punishing me because they're not making enough interest on my account.

Anyway, they won't get another dime from me until they reverse the interest rate. In case anybody from Citi is reading this, the reason why you are losing your best customers is that you treat them like dirt. Doubling prices for no good reason will drive away customers. I'm gone. Goodbye.

KAREN of RIVERVALE, NJ November 16, 2009

My Citicard rate has been increased to 29.99%. I have had the account for over 10 years, no lates. I called and was told my choices were to pay it off. No other options. I faxed and emailed for over 1 month, no response. I just called and "opted-out" of this "offer". I will liqudate my IRA Roth to pay this off. It is loan sharking in my opinion.

Susan of Foster City, CA November 16, 2009

I was granted a Citibank Platinum Select Card in early 2002. I had been with Citibank for several years prior. I had used the card mostly to run my business, purchasing a lot of equipment and supplies. I usually paid off the account in full every month no matter how high the balance was. Sometimes the balance ran into the thousands but I paid it off in full each month to avoid any headaches. The last two years business has not gone so well but I paid the account first in halves, then in payments. I have never been late in all the years I have had this account. One reason for this is due to the automatic payment system that was set up. One month Citibank decides not to pay themselves from the Citibank checking account with the automatic payment set up.

Suddenly I go from a 1.99% to a whopping 29.99% monthly interest rate. This went on for months before it was picked up. They never sent us notification regarding this new interest rate. I called up and asked when they decided to raise the interest rates and when it happened. If the automatic payment process would not have happened I think it would have gone on for months more before I realized just how many months they had already been charging me this outrageous interest rate. I threatened to close the account and they suddenly changed their tune. They begged me to keep the account open but they would have to start charging me 3.99% interest rate.

I disputed the previous interest rates because I felt they blind sided me. They of course only decided they could credit back a few months but I dealt with that. I paid every month on time, most of the time early. We have been praying our business will pick up but it hasn't so, we have paid a small amount on the balance since until business picks up. What did Citibank do? They blind sided me again. Without notification, they again decided to charge me at the rate of 29.99%. They closed the account and decided they will continue to charge me at the rate of 29.99% even though I have never missed a payment for nearly 10 years! What can I do now? They will own me for the rest of their lives or if I decide to pay as much of it as possible with what I can, they will be making 29.99% off the balance. What is more, they admitted they did this recent move on many many innocent unsuspecting people -- just as they did to me.

S. of vero beach, FL November 14, 2009

Had payment arrangements with Citicards where they would automatically draft 200/month from my account to make payments. Interest rates were at a reduced rate of 4.5%. Payments withdrawals stopped without notice and the interest rate escalated to 13+% and the monthly payment was increased from a min. ot 167/mo to 335/mo. Payments were made as agreed until they stopped the auto drafting without notifying me that the plan had ended. Each month they sent me a notice telling me that the payment had been withdrawn. However, when I did not receive one for the month of September, it was too late, because the account was then already past due.

Maria of Yonkers, NY November 10, 2009

Filed identity theft reports with appropriate agencies in August 2009 for checks obtained and used fraudulently and attempted obtainment of banking card in my name to another address. Citibank assured me that a fraud alert was placed in my name and that no one can obtain checks or banking card by telephone and need to come in person to my bank branch with ID to obtain such items. Banking card was issued via telephone by Citibank early November 2009 and used fraudulently in my name for 2 days with debit purchases of over 2100. I was never contacted by Citibank for such activity, which is out of my character. As well, I was offered no explanation as to why a banking card was issued via telephone when I had been told that this needed to be done only in person with identification. I am very suspicious of the activities at Citibank, and I am in the process of closing my account and going to another bank.

Travis of Granger, IN November 10, 2009

I also got the famous 29.99% APR letter today in the mail. I have been a CitiBank Card member since 1998 and I have NEVER made a late payment and have great credit history. I recently had a credit line of 25,000 carrying a 11,600 balance. Out of no where I get a call telling me that my credit limit has dropped to 11,800 or basically to my limit with no reason at all. I called and complaining but it seems I may be lucky compared to the rest of these complaints. I was able to get the customer service rep to give me 0% for 6 months on my open balance. I threatened to close it right then and there with a payment and he offered me 0% for 6 months.

Now this was like 3 weeks ago and before I got the letter but at least it may help some of you fight for at least 6 months of 0%. I called today to make sure my 0% still was in effect and they said yes. However, if I want to opt out of this 29.99% I have to do it by the end of November or something like that. I am afraid if I do they will reverse my 0% and turn back on the interest. What to do?

Frederick of Upland, CA November 10, 2009

Having been a great customer for about 28 years, I received this notice from Citibank with regard to a credit card that I have had for 28 years. Here is the letter in summary.

"Dear...., We are making changes to your account terms. "An increase in the varible APR for purchases to 23.99% and will take effect December 10, 2009." It further goes on to say, "Transfer 5000.00 or more by December 10, 2009 and receive a special rate of 15.99% on this balance transfer until January 1, 2011." Of course, it gives me the opportunity to opt out but after 28 years of being their good customer, or aka, in their words, "As a valued customer..." Of course, I will not be party to this abuse so I declined and will use my own money to payoff my small balance and let the chips fall where they do. I do find it very interesting that this same bank was bailed out by the tax payers via congress. I have started a "cause" on a very popular social website but also decided to put this in words on your site.

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