Citibank / Citi Cards draconian change in credit card terms The Lakes Nevada
They changed their credit card terms so that if you are one second late getting a payment in, to *ANYBODY*, they get to raise your interest rate to over 24% forever. And you cannot sue over this, because by using your card, you are accepting binding arbitration.
I have been a Citibank cardholder for years. For years they did their customers right. Lately that seems to have changed and they have become a "Screw the customer" type operation like so many others. I got this "Change of Terms and Conditions" notification back in April, and read it closely. I then wrote them a letter stating I did not accept said terms and conditions, and stating that I would no longer use the card. They sent me a letter in return regretting that I no longer chose to be a customer of theirs. I just laughed.
My advice: if you have a credit card with these people, go elsewhere. There are companies out there that are not trying to screw their customers, that treat their customers fairly. Citi isn't one of them. (And note that I have a FICO of over 700 and a blemish-free credit report, so this isn't some deadbeat saying this). There's no reason to do business with a company that wants to rip you off.
Eric
Scottsdale, Arizona
U.S.A.
2 Updates & Rebuttals
Eric
Scottsdale,Arizona,
U.S.A.
Perhaps a credit union?
#3Consumer Comment
Fri, June 13, 2003
Many credit unions nowdays are just re-branding an MBNA or Chase card, but some still do issue their own credit cards via cooperatives such as PSCU (which is owned by a number of credit unions). There's a reason why the banks hate credit unions and are trying their best to get Congress to make them illegal -- credit unions are everything that banks used to be, local, fair, non-profit, and responsive to customers. I haven't done business with a bank in years, because almost all banks are rip-offs nowdays.
You may not think you qualify for credit union membership, but check again. For example, I found that I qualify for membership in my local utility company's credit union because I'm a customer of said utility company. Also, it generally is quite easy to have your employer sign up so that its employees can join the credit union. Even very small employers can do that... I once worked for an employer with five employees that joined a local credit union as an affiliating party.
So for most people, a credit union is a realistic alternative to the rip-off that is the modern bank. Check it out in your area, and see if that's an alternative for you.
Robin
Waldron,Arkansas,
U.S.A.
Eric, have any ideas about a CC company that ISN'T trying to rip off customers?
#3Consumer Comment
Thu, June 12, 2003
This is a huge problem these days.
Fleet sent me a proposed change in terms saying that they wanted to raise my interest from 9.8% to 14.99%! When I called to check WHY (fearing a major error in my credit report), they simply replied that our outstanding balance was too low and they were not making enough money! In other words, Fleet simply wanted more money and the lady at the other end of the phone was honest enough to tell me (God love her!) I had had this card for years with nary a blemish, and they still decided to stick it to me! (Or try; like you, I told THEM to stick it)
I would never sign any contract that had a clause that stated that the lender could arbitrarily raise my interest rates whenever said lender decided it needed or wanted to raise its profit margin. I have yet to receive a CC offer that does not have that little "terms subject to change" clause in the disclosure; meaning "we'll raise your interest rate if we want to, when we want to".
I am currently credit cardless because of this. So far, it has not been too major an inconvenience; I have enough cash to do what I need to do. But, I may need one some day. I can go to a different company, sure; but it will ultimately be the same old run-around later on.
If you should find one that does not have that disclaimer in the reading matter, please share it wih the rest of us! Until then, they can ALL stick it!