Thats exactly what will happen. Exactly what George said. They wont cancel-they will just make it uncomfortable for you. They will default-price a person in a heartbeat. They pull many credit bureaus on a person to watch how you are handling your other debt. This is a new thing that major companies are doing, they look for ways to regain some of their losses by default pricing you. Citibank is a major one for that, other companies are catching on. My best friend showed me her credit report, in her inquiry section, she had Citibank on there every month to every 2 months, watching and waiting for something negative to appear. Its scary for a credit card company to have so much control. Jamee
FIRST USA "JACKED" me to 22.49% (no stated reason)...so I "JACKED" them...paid and closed all 3 of our accounts...$72,000+
my best friend that I was just talking about above, had a new medical collection entry of 55.00 added to her credit report, Citi did another monthly inquiry like clockwork, she got her next statement with a new 23.9 apr. She fought with them for MONTHS getting that default price removed. The collection was an error, they removed it from the report, Citi lowered the apr back down after around 8 months, and many many phonecalls, they never credited her the extra interest either. She had BT'd all her balances to them, had a 15k credit line and about a 12k balance at 23.9. Jamee
Isn't there something somewhere that says medical collections cannot be used against a consumer when applying for credit? Something about medical bills being unexpected and unforeseen?
Breeze, please elaborate Please elaborate. I would like to be prepared in the event that Citibank tries this stunt with me, giving I just had three new ones to show up. Thanks.
If you will... Would you happen to know where I can find confirmation of this? I want to keep my arsenal stocked
Re: If you will... CITI originally pulled TU for me during the application procces. After the first month they did an AR on TU, second month EQ, haven't seen one for the third month.
Re: If you will... I dont think she would have a lawsuit. Its in the cardmember agreement that plainly states they have the right to do this, these companies have their butts covered and have their legal departments write these things. It says something about "if you default on any other creditor, blah blah" They would consider any collection a defaulted item. She is still fighting with them, they did finally lower her rate back down, just not a creit of the interest. No one wants to do it due to the amt, think about it, 23.9% for 8 months with a 12k bal. Thats a lot of money. One rep told her that they have adjustment limitations they have to follow. Amazing. She spoke with a supervisor and they told her they are rightfully within their terms because of a collection on the bureau, she faxed the correction to the supervisor, the supervisor removed the default rate but refused adjustments. She says she isnt done fighting. Jamee
Re: Breeze, please elaborate Not a lawsuit against Citi. Citi states plainly that they consider you in default, and will give you default rates, if you have any delinquency with any other creditors. Her lawsuit would be against the company that placed the erroneous information in her file, and possibly the CRA that allowed it (depending on the circumstance). I do think that some of you who actually got Citibank cards with dergos already on your reports, who have the same CA put an "update" or duplicate entry on your report might have cause, because Citi gave you the card, and your existing terms, with the entry already on there. One thing to consider - this may be why Citi accepts folks with old derogs so easily. Talk about profitable!! They accept someone with the old derogs, knowing that chances are, the CA is going to put more stuff on their report. Credit activity (like getting a prime card) stirs up the CA activity - we all know that. And most of the people who got the new Citi cards, are now in a good position financially - Citi looks for higher income applications. They put a high income on the app, Citi figures if they impose a 29% default interest rate, the individual trying to rebuild won't default, they have the high income to handle it. Forgive my rampant paranoia
Re: If you will... That's not what I meant. Her beef is with the company/collection agency which placed the erroneous information on her report. Their "error" cost her money. That's what lawsuits are for. That's what this new law allows.
Re: If you will... It wasnt really erronious, it was a n emergency room visit that her insurance company should have covered, it was a claim put on hold. Her insurance company says they just needed verification that she didnt have any other insurance to cover it, and she says she never received any letter requesting that info, then it was on her credit report as a collection a year later. She refiled the claim with her insurance, they paid the claim, finally got it removed from the credit report... Her credit was really good, no problems, she got the citi card with her scores in the low 700's, the did the AR, found the new collection, whacked her with 23.9. Jamee
Re: If you will... OK that is different. I thought, when you said "erroneous," you meant that it was not hers. This is "one of those things." No grounds for a lawsuit, unfortunately.
