Credit cards and financial rap

Discussion in 'Credit Talk' started by bethany, Oct 5, 2000.

  1. bethany

    bethany Guest

    In a nutshell: I had a Citibank Gold card since 1988 with a credit limit of $15,000.
    Because of a few major purchases, the balanced sneaked up to $10,000. Scarey, yes I know. Anyway, on the months of June and July, the payments were late because I was experimently with electronic payment through my checking account and was paying off other bills. I had always had timely payments until then.

    August, I sent a payment of $5000.00 and a letter asking them to lower the current interest rate of 16.9% and increase the limit. I received two letters denying both. Today I recieved a statement with a short paragraph stating that they decided to increase my rate to 24.49%. Of course I called immediately and a woman told me that that ALL credit card companies (MasterCard and Visa) have now decided to periodically check their customers credit reports and IF THEY ARE BEHIND ON A PAYMENT TO ANYONE, DOES NOT HAVE TO BE THE CREDIT CARD COMPANY, THEN THEY WILL INCREASE THE INTEREST RATE! Mine jumped from 16.9% to 24.49% in one billing statement.

    Now I ask, where was the KY Jelly? So, with their logic, if you are behind on bills, they will jack up the interest, charge you more, so that you CAN NEVER get out of debt. GREAT way to screw the consumer and economy.

    Insidently, I have no clue what could be on my credit report... so that was another phone call.

    End of story, I am sending a check to pay off the balance along with the cut in half card. Thank you customer service. So much for loyality.

    My advice, watch your back as well as your credit report.

  2. roni

    roni Well-Known Member

    RE: Credit cards and financial

    Thanks for the tip.
  3. RichGuy

    RichGuy Guest

    RE: Credit cards and financial

    Thank you for the warning. We have to be very careful with all our creditors in the glorious "New Economy."

    I have a Citibank MasterCard. I believe that two late payments are sufficient to trigger their default rate, without reference to your credit report.

    I used to pay late a lot, and I always thought 21% was their normal rate until they notified me this February that my rate was being lowered for timely payments. Cancelling the card is an option to avoid the default rate, but so is paying on time for six months.
  4. Saar

    Saar Banned

    RE: Credit cards and financial

    Frankly, I don't see what they did wrong:

    1. Skipping payment for 2 months in a row represents a greater credit risk. Extending credit costs money, which they recover by assigning risk-based APR. Greater risk equals higher APR.

    2. If you've been with them for such a long time and have a valid explanation for paying late, all you had to do was pick up the phone and ask to speak with a retention officer (not customer service) which is authorized to lower the APR back to what it was. Since you otherwise intended to cut up the card, why not give it a shot ?

  5. Larry

    Larry Guest

    RE: Credit cards and financial

    I agree w/ Saar... you are better off talking to a supervisor than you are with a reg rep. (and please don't loose your cool)

    You also mentioned you were experimenting online bill payment. If you payed b4 the due date online, and you printed your receipt, you have every right to contest the lates. Fax your copies to the supervisor and I am sure you'll be hearing apologies.

    Remember people reach agreements by communicating rationally.

    Good luck !
  6. ble103

    ble103 Guest

    RE: Credit cards and financial

    To everyone on this board always pay attention to your credit card statements very close for any bill stuffers marked "important notice" We are amending your existing credit card agreement.It is no suprise about why most C.C.C.'s are jacking up interest rates if you are late with any creditor.Also watchout for a newer version of aternate pricing with interests are at almost 30%.What they are trying to tell you is that you must have perfect credit at all times for them to keep your interest rates low.So don't be late with anyone,and everything will be alright.
  7. Momof 3

    Momof 3 Guest

    RE: Credit cards and financial

    Yes it is very good to read that whe it comes with your bill. Although I understand what you are saying, yes everyone should pay all their bills on time, I have so far:) But I don't feel that if I was late on Card c once, that Card b should turn around and jack up my interest rates. I can see if this became a habit with all your creditors, but I don't believe they should do this with a late especially if it is not with them Just my thoughts:)
  8. ShyGuy

    ShyGuy Well-Known Member

    RE: Credit cards and financial

    I don't know about Citibank, but I pay some of my bills online. My wife's MBNA agreement says that if the online system fails, it will pay the late fee (but you have to follow the terms of the agreement). CheckFree, which I use to pay my Texaco card, also has some sort of guarantee, but I've never read the details. (I guess now I probably will.)

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