Here's a little something to think about maybe this is going to be the trend now. I filled out an application for a Sears account and received a letter from Citi the other day that said they will open me an account up with a CL of $3,500 if I agree to sign the included enclosed form. What the Form said, that they enclosed with the letter was that I was agreeing never to file bankruptcy on this Sears account and that this Sears account could not be discharged in bk and if I did file BK and include this Sears accounts they would file an objection to my bk and have this Sears account removed from my schedule F ( list of unsecured debtors) of my bankruptcy paperwork by producing this paper I had signed when I opened this account up. I filed bk in 10-2005 and now am wondering if Citi is just doing this to people that have recently filed bk, or everyone or even if they can make this hold up, Iâ??m sure they can or they wonâ??t be doing it. Iâ??m just saying, make sure you know what youâ??re signing. I told them to stick it, where the sun doesnâ??t shine. I don't want to pay you 22% interest that bad.
Now that I know what to look for, I'm seeing lots of "cover their butt" language. e.g. -- I would agree to binding arbitration if one or the other parties requests it (i.e. the bank, in most cases where the cards are 98% in their favor). -- I would agree to a default rate or a universal default rate of 30+% if I'm ever late on this or any other account. -- I agree that they can change the terms of the agreement at any time and for any reason and they'll let me know 15 days in advance. These are some of the recent examples of "invitations" that have turned into shredder food lately. Fortunately, I've put the promotional inquiry block on all my credit reports so I don't get these much any more. I only get the invitations from banks that I have or have had accounts with. But, yeah, they are shoring up the legalese in their agreements.
The problem is that I have or have had accounts with just about every major bank. I didn't even bother with opting out. Just more shredder fodder.
Sears got busted years ago because they forced BKs to reaffirm their CC debts. Sears cards are horrible. They don't post on time, they don't give the discounts they promise... Their card has been in the sock drawer for years.
It's big league bribery - we'll give you a credit card IF you sign the enclosed form. It's a big time threat - we'll object to the discharge if you file bankruptcy. But then Citi is considered one of the biggest crooks of the CC world.
I had a Sears card years ago & when I hit a rough patch financially, I called them to tell them that I needed some breathing room. They said they understood & would work with me. They sent me to collections within 2 months & charged off the account within 3. Since then I refuse to shop at K-Mart or Sears & tell everyone I know not to do business with either store (they have cheapo stuff anyway). If there's any way you can avoid a Sears card, do it. They're the WORST!!!
I have no idea where you get this information. Citi is a reputable bank and cc company. They are publicly-traded and do business in accordance with SEC and OCC regulations. They are one of the largest financial institutions in the world. While you may have had a bad experience with them, that does not make them crooks. I have had wonderful experiences with Citi. They were one of the few companies who worked with me when I had financial troubles.
I agree with Hedwig. Greg, I would like to know what makes you believe Citi is one of the biggest crooks... both my husband and I have our individual Citi cc, we use them on a regular basis, and don't carry balances on them. I've never had a problem with Citi, in fact they are a company I prefer.
Can you really blame a creditor for trying to avoid getting "stuck" w/a bad debt though? I don't think this is an outrageous move by CitiFinancial. This could hold up, as you are entering into a legal contract, and simply put, if you do not agree with it as an "acceptable term", then you can choose not to apply for the card. I do applaud you for reading all of the fine print!
Thank-you, All I'm saying is make sure you know what you're getting into. If you have had a good experience with citi then, that's great, but miss a payment once and see how quick they turn on you. I had an account with Bank of America years ago I had this account for 8 yrs never missed a payment I payed them their 12% interest every month balance was about $1,200.00 Well to make a long story short I lost my job here in PA when things got slow and called them up thinking we were friends and they would put me on some kind of reduced payment plan or even lower the interest rate, guess what? we weren't friends anymore Sorry I was told, there's nothing we can do 31days later I was reported late on my Credit Report. So like I say as long as their making money off you "You've got a friend for life, but miss just one payment and see how quick they turn".
