Real Estate Community Forum

I currently have a citibank credit card and recently received a letter in the mail explaining that the APR on my account will be increased. This letter was sent even though I am an excellent customer who has never been late with payments and has been a customer for over ten years. The letter further states that I have the right to refuse the increased APR, but there is a catch. If I refuse, I must continue making my monthly payments, but my account will be closed, which will affect my credit rating. I feel very violated. How can they do this to people! Aren't there any laws to protect consumes from these terrible acts?

Yes, citicorp is raising their APR rates. One of the reasons for this is because they've been in the news crying for money. In response to their cries, the federal government is giving citicorp $20 billion dollars so they wont go under. We all know if a company is doing poorly, they always go to their customers to raise more money.

You may be asking yourself; Is this fair? Can they do this to their customers? Yes they can and it's the "American Way of doing business".

One of the major problems with credit card companies is they are not highly regulated. As a result, many companies take advantage of their customers and will offer sneaky incentives to encourage them to spend more money on their credit card.

The bottom line is never trust credit card companies. They are a group of con artists. It's too bad that we need them to build a credit history, otherwise I'd never own a credit card.

Citicorp has had several problems over the past years. I got out as soon as I could. Legally they can do anything, even if that means increasing your APR.

If were you, I would look again at your letter to determine if the APR is for new purchases or will your entire outstanding balance be affected? Otherwise, pay off this credit card as soon as possible. If they have raised your APR, chances are there will be other changes going into affect that you will not be happy with.

My letter was slightly different. On close reading I find that my interest rate will stay the same, but only if I stay on time with at least the minimum required (interest only) payment. Should the mail delay my payment, I can argue with them, and they may agree. If I am late, six months of on-time payments will allow me to go back to the regular interest.

Cash advances are also subject to a higher charge. They will be about a third higher than they were. This is really not a problem, as I don’t recall the last time I needed cash I couldn’t get from my ATM card. The one thing I didn’t like was a “per transaction” surcharge on foreign purchases. I have used my credit card on foreign vacations, and this will certainly change the way I travel (should I ever be able to afford to again).

In the past, the currency exchange rate was among the best in most areas. This surcharge will put that firmly in the past. You would think that to encourage more travel, more goodwill with our allies, and to secure travelers against carrying cash, this would be the last thing Citi would try. Ah, well, they didn’t ask me first, just like all the other times they didn’t ask. Bottom line? I’d pay them off. A home equity line of credit has a much better rate, even when it is a flex rate, than a credit card does. Guess it makes sense. How smart would it be to let a credit card company that is failing be your financial backup any way?