In the mail today: Citigroup increases my credit card APR to 19.99% minimum

[Newsjock]

I've had this card (original AT&T Universal Card, since acquired by Citigroup) since 1990, never missed a payment, etc. ... you know the drill by now.

"We are increasing your variable APR for purchases. Your purchase APR will equal the LIBOR Rate plus 16.99%, with a minimum APR of 19.99%. ... The default APR equals the greater of (1) the LIBOR Rate plus up to 26.99% or (2) up to 29.99%."

Screw that. Your timing is impeccably bad. Kiss this extremely profitable 18-year customer goodbye. So glad you got our billions. Up yours.

[Faygo Kid]

1. Wow. Cut it up.

This is going to happen to all of us.

[GodlessBiker]

2. There used to be usury laws in this country. NY used to limit interest to 25%/year.

[HamdenRice]

3. They're afraid to admit they have no money to lend you

so they just raise fees or cut off credit.

But the credit card system relies on them selling bonds that are a lot like the mortgage backed securities that caused the housing market crisis, but they're called "credit card receivable backed securities."

The banks haven't been able to sell them for months, so they can't replenish the supply of money that enables you to make credit card purchases.

They won't come out and say it because they're afraid there would be a run on the bank.

[Pithy]

5. New usury laws coming

that will prevent credit card issuers from charging interest over a certain percent. So they're trying to get it now.

[DesertFlower]

4. legal loansharks. nt

[msongs]

6. well they are raking in your taxes funded bailout/interest on cards thanks to congress

be sure to email your senators and congress person and tell em to act on your behalf and not on behalf of their corporate masters.

Msongs

[AndyA]

7. Cancel the account, and tell them why.

Then write to your representatives and let them know how Citigroup is thanking the American people for the bailout. Be sure and let Citigroup know you'll be doing business with their competition. One who isn't getting a government hand out.

[flyingfysh]

8. they did that to my wife

So she paid it off instantly and cancelled the card. Since Citibank has taken over the credit cards for Sears and Macys, she is also boycotting those 2 stores.

The only thing she owed was a little bit on that credit card, and she has hundreds of thousands of dollars worth of stock (even after the Bush market downturn), so she couldn't possibly have had a better credit rating.

[Kat45]

26. I didn't know that they have the Macy's cards now.

Thanks for the info.

[MineralMan]

9. Time to start lobbying for usury laws...

Seriously. The climate is right.

[closeupready]

11. Yup.

Totally on board with clipping their wings.

[Vincardog]

10. pay off your Citi card and over pay by 1 cent. Then put the card away and make them generate a

statement every month saying they owe you a penny

[OhioChick]

12. Yours (and my) tax dollars at work

Citigroup to hire 1,000 workers in Philippines

http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=103x404517

[rocktots]

13. Try to roll it over

Try to roll it into a 0% account. And don't use it anymore.

Credit cards were maxed at like 12% profit. There was talk about dealing with this, but I doubt it will happen. They are trying to crash the economy, and make us all One World Slaves by destroying the working middle class.

Has any Democrat come out against any of these financial fiascos?

We are not going to be a free country for long.

[Blue_In_AK]

14. My husband had that happen with his Chase card, I believe.

He cancelled it which locked in the old rate, and he's paying it off. I think it's criminal to raise rates on long-time good customers. Fuck them.

[pinniped]

15. Same drill. I got a couple of those from a different shithead bank a couple weeks ago.

I sent the "do not accept terms" letter to these shitheads certified mail, just in case they try to pull that "we didn't receive it in 30 days" bullshit.

They were trying to increase the rates 4.00% to 14.99% and 19.99%.

Fuck them.

[Triana]

16. Cancel that suckah and tell 'em why. As a taxpayer the scumbags already GOT enough..

...of your money. Mine too. And everyone else's. F*ck 'em.

[Azlady]

17. Grrrr

They just outsourced 1000 jobs too!

[OhioChick]

22. So, technically speaking....

Your tax dollars are paying for foreign workers to take the place of U.S. workers that are to be/have been handed pink slips.

[smoogatz]

18. Time to go debit only.

We did it a couple of years ago and now keep a credit card only for emergencies and odd-ball transactions like the occasional car rental and some higher-end hotels, which still don't take debit cards. We pay it off every month, so the APR is irrelevant. The credit card companies have been doing this shit to consumers for several years now, with no apparent repercussions: your best revenge is to pay it off and cancel the account, pausing only to shoot off a stream of irate emails to your senators and congress-critter.

[The River]

19. I Went Credit-less in 2000

after a medical bankruptcy
and have never been so liquid.
Banking 20-30% of my income instead of
sending it to a CC company made the difference.

[smoogatz]

23. Yep.

Nothing frees up disposable income like not handing it over to CC companies in the form of 20% interest, for which you get, um, nothing.

[malaise]

20. Here

[SlumJack]

21. The CC-Squeeze Play

I had several of the leading credit cards, for years. They made a lot of $ from me.

Then I hit some harder times.

So, of course, they jacked up my interest rate and lowered my limit. This meant that the monthly payment got higher, which then exceeded the limit. So they'd pay themselves the fines, penalties, over-payment charges, etc. and so wring the turnip blood out of the accounts just as maximally hard as was barely legally possible.

If not actual real 'revenue', it's all then write-down credit which can be taken tax-wise and otherwise.

What a scam. A despicable scam.

[salin]

24. simultaneously

they want YOU to pay for their bailout and all their peers bailout - with little to no cost to there executives or share holders. We should owe thousands to save citibank, just so they can further screw our citizens.

[itsrobert]

25. I got the same thing

Luckily I haven't charge anything on it since my balance tranfer offer of 1.99 percent. And once I'm paid off, I think I'll just keep it for an emergency.

[TexasObserver]

27. Tony Soprano rates.

[OneBlueSky]

28. I also have one of those AT&T cards, but haven't received a letter . . . yet . . .

if and when I do, they can kiss another 20-year customer goodbye . . .