Citibank Hates Old People
As the announcement of the U.S government's stake in Citigroup draws near, the following letter that my mother sent to North Carolina (their residence) politicians and Citibank executives -- seems particularly relevant. It seems that Citibank has decided to increase the interest rate on my grandparents' one credit card - from 5.74% to 14.99%. My 88 and 85 year-old grandparents pay their bills on time, have good credit, and have been responsible with their money for eighty-eight and eighty-five years. That's why it's extremely disheartening that there isn't anything that we can do about this.
My grandparents aren't alone -- a quick look on Twitter and the comments in this blog post shows other folks talking about their own massive interest rate increases on their Citibank cards. Sure, credit card companies can increase their rates. That's why variable rates exist. However it's the across the board increases to all customers regardless of their credit and payment history (and age!) that has us outraged. During the election there was a lot of talk of not using a hatchet when a scalpel is needed. It seems as if Citibank just brought out their hacksaw and blunt hatchet.
As my mother says in the first line of her letter, she doesn't expect any changes from Citibank -- she only wants to be heard. It will be interesting to see if any of the parties involved (and the politicians) respond.
Dear Sirs/Madams:
We don't expect any actions as a result of this letter but to bring to your attention what we feel is a situation where even though no laws have been broken, in these economic times, these actions taken by Citibank seem irresponsible and contrary to President Obama's strategy to get us out of this financial nightmare. Our elderly parents (88 and 85) have only one credit card. It is with Citibank. As of their January 2009 statement, their credit card interest rate was raised from 5.74 % in December to 14.99%. They have excellent credit and have always paid their bill on time. They use their card responsibly. When contacting Citibank to inquire why their rate had so dramatically increased, they were simply told it was to cover the cost of doing business. They also informed them that all their customer's credit cards interest rates were raised.Citibank gave our parents two options, accept their rate or opt out. Opting out means that their one credit card will not be renewed next year by Citibank because our parents will not agree to the outrageous interest rate Citibank has decided to assess them and the rest of their credit card customers.
The real purpose of this letter is to make sure we are not silent when companies like Citibank go to Washington and give lip service on all they are doing to use the TARP funds to help the American people.
Their actions speak louder than their words.
Copies sent to:
NC Senator Richard Burr
NC Senator Kay Hagan
NC Congresswoman Sue Myrick
NC Congressman Mel Watt
OCC Customer Assistance(Treasury Dept)
Citibank Chairman: William R Rhodes
Citibank CEO: Vikram Pandit
Citibank CFO: Gary L Crittenden
Citibank PR: Kristen Kaus
Loading comments…
Want to reply to a comment? Hint: Click "Reply" at the bottom of the comment; after being approved your comment will appear directly underneath the comment you replied to
I too have had my credit card interest rate increased for no good reason, from an introductory rate of 3.99% to 13.99%. I called Mastercard and was able to lower it to 11.2% variable. I would suspect that if you pay off your balance every month, that might be a reason to increase your interest rate just because the companies aren't making any interest off you. There's a lesson here. Pay cash whenever possible or at least use checks and debit cards whenever possible instead of credit cards. I'm a merchant and have seen the rise in the use of credit with my own eyes. Credit is convenient at the moment of purchase but it certainly is not priceless.
Morgan Stanley offers 13% to wealthy investors with FORD stock to get shares they can SHORT!
OUTRAGEOUS!
Worse than the Ridicules Bonus Scams, the Derivative SCHEMES, and the FIXED CREDIT DEFAULT CASINO GAMES!
Exactly why our ECONOMY is in a shambles!
Illegal naked shorting is now being regulated so Morgan Stanley driving a stake in the Heart of FORD as they and Goldman have done to many other companies.
SEC put a halt to short selling of financial stocks, why not protect the manufacturing base? WStreet keeps playing same old dirty games. (Thanks GardenerNorCal)
It is not OBAMA, but it is SHORTING that is ruining our Markets and they make large Fortunes doing it!
This should be regulated and made criminal during this CRISIS and perhaps permanently!
Where are the NEW REGULATIONS ON THE MARKETS????? WHERE ??????
This must be stopped or we will never recover!
Holder should investigate this and Congress should take testimony!
More costly and damaging TRICKS and SCAMS by these Big WS Banks/Hedge Funds!
When will it STOP?
________________________________
WHERE ARE THE NEW REGULATIONS ON THESE CORRUPT MARKETS????
These crooks are making small fortunes driving each other out of business using SHORTING!
The TAXPAYER is paying the PRICE of Bailing Out Banks/Companies that are being short sold by other Banks/Hedge Funds!
WHEN IS THIS SCAM GOING TO STOP?
We think the government is taking over the Banks when in fact it is the BANKS TAKING OVER OUR GOVERNMENT!
As a 71 year old owner of Citi Bank stock, I don't like Citi either.
It's easy to say the big banks are glorified thieves - and, for the most part, they are. But those of us with a lot of outstanding debt are the equivalent of someone who leaves the keys in the car. It ain't right, but we're asking for it.
Just do the American thing and vote with your check book. That is, close the Citi account and move to a low rate card. Or, becasue you pay it in full every month, why even care? There's enough to worked up about in this crappy economy, and this isn't on the list.
I pay my credit card bills in full each month, but their actions of increasing interest rates like this infuriates me. I do care as it is wrong and hurts many people who are responsible yet not as financially secure as I am, or you seem to be.
I also seems to me to be the opposite of what I thought they would do. To me they would get more with carrots then such a big stick as they are currently using. I recommend they reward those that have been good and drop those that have shown poor behavior - just not renew them next time.
But instead this action was taken. It didn't surprise me as I am learning, sadly, that many people behave greedily and selfishly, especially those with corporate power. Odd that, in the end most will lose more than they gain.
We, the regular people of the U.S. have only one way to fight. Payoff our credit card debt. At the minimum no more citibank, Bank of America, or any other large corps. If they have you and you cannot get out. Just declare bankruptcy.
These institutions do not need to be saved. The govt is giving them billions (our money) but check the fees these same instituitions are charging us.
These banks and financial companies should die a quick death.
And I do not buy the line we must give them billions if not trillions because of jobs. Other better run banks and instutions will fill the void quickly.
Our govt is not even changing the senior mgt. The most our govt has done is complain about some salaries and bonuses.
Does the govt really have our best interest at heart or campaign cash tfrom these institutions to be re-elected.
"As of their January 2009 statement, their credit card interest rate was raised from 5.74 % in December to 14.99%."
Everyone knows the 5.74% is a teaser introductory rate to lure new customers. The raise to 14.99% is still less than the 20+% most cards charge. I can not accept the argument that Citibank is singling out the older customers or that this high rates, fees, and other tricks are unique to Citibank when they are being used by most credit card companies on all their customers.
Keep one credit card only for emergencies and vacation. Pay cash for everything else and live within your means. That's what we did before credit cards became commonplace. If massive amounts of people stopped using credit cards you would see the rates change in our favor. But these companies know that paying with credit has become a lifestyle for most and a necessity for some and they take advantage in any way they can. We are not powerless here.
We are all totally in control of our own finances. Its not that hard to only charge what you can afford and pay off your bill every month, I"ve been doing it for over 25 years. Think of it like you are getting an interest free loan for 25 days. Using cash only is unrealistic, its too inconvenient.
My Citi story: 5 years ago my first mortgage was sold to Citi- I had a 2nd with another company, and had my checking and savings at a small local bank. One day, while paying my mortgage in person, I was talked into moving all my accounts to Citi. I decided to give it a try, and it was ok for a while. 2 years ago, while the housing market was still flying high, I decided to refi my first and consolidate the first and second- the first thing I did was call Citi to see what kind of rate I could get. They offered a rate that was laughable, so I searched around and found a competitive 30 year fixed rate. I called Citi to see if they would match it, and of course they wouldn't. I decided to move ahead with the other company, while keeping my home equity line and all my other accounts with Citi. I needed to subordinate the 2nd with Citi, so it needed to go through some magical process- they had plenty of time, but would NOT do the required paperwork. After many phone calls and emails, I was in danger of losing my rate on the new first, and was forced to find a new 2nd with another bank. I was so mad I closed all my Citi accounts- the kicker?? 2 months later the first was sold to- you guessed it- Citi!!!
The banks are crooks.
Why don't we all just stop paying our credit cards? Does anyone know what would happen to us if we did that? I mean, it's unsecured debt...so the banks can't really reposess anything. And maybe it would be worth the hit to your credit in order to be able to stick it to and hopefully hurt the banks and card issuers...I know it's unethical to agree to borrow the money and then not pay it back, but it's also unethical of the banks and card issuers to just jack up the interest rates on those of us who have good credit and a spotless payment history with them.
If you have massive debt to CC companies, stop paying them! Do you know how many people have 'black marks' on their credit reports from this non-sense? Go to an agency to re-structure your debt, and pay a lot less. My friend did this 2 years ago, this year she bought a house, credit was no problem. If you pay your balance on time, get an Amex and debit/Visa. If you have an emergency, Amex will let you pay over time, otherwise neither card will accrue interest. Before long, banks will need people to lend money to. Think they're going to say no to everyone who bailed on a credit card?
BTW: in CC speak, a person who pays on time in full every month is known as a 'deadbeat'. Most of their profits come from low income people up to their necks in debt, just paying interest and fees every month.
disclaimer: I have an Amex and debit, no credit cards, nor will I ever. I had some when I was younger, paid them off, and cut them up.
Your grandparents pay on time? No wonder they are being penalized, the credit card companies want the bills in arrears for more fees.
Tell them never to use any credit card unless it is life and death situation. A debit card from a local credit union should be enough.
People should stop using cards as cash to earn "points" . Why give those crooks access to your money? Look what are they doing with it. Just say no. Just use cash.
I don't understand why anyone keeps any account with Citibank. No one is required to keep their money there, or their credit card account. Why give them business?
And exactly how do you expect me to rent a car, buy a plane ticket, reserve a hotel, etc, on a lengthy business trip? A corporate debit card with a credit card attached? Please be realistic and look at the big picture.
"Maybe if we banned credit cards and forced people to only spend what money they actually had we might not be in this credit crunch."
====
I travel extensively for business, including overseas. I have an Amex and debit/Visa, both of which are paid in full automatically every month, neither of which charge me interest. I absolutely will not ever have a 'credit' card again.
You must be logged in to comment. Log in or connect with
