4 ms·

threaten to go on strike by a certain deadline if the issuer refused to lower APRs That's an empty threat...the only way to get out from under the credit card

by byoung2 16y ago

threaten to go on strike by a certain deadline if the issuer refused to lower APRs That's an empty threat...the only way to get out from under the credit card company is to pay off the debt or transfer to another card. If you can transfer to another card with a lower rate, do it. If you can pay off the debt, do it. FYI, the credit card companies don't just raise your rate to 29.99% for no reason. They only do that when you are late or over the limit. If you are a customer in good standing, just call them up and ask for a lower rate. I've lowered my rates in the past from 15% to 7% just by asking. Nowadays I don't carry a balance, so I couldn't tell you what my interest rates are.

malandrew 16y ago
Actually I did eaxctly what you suggested and contacted them to lower my rates. After escalating my inquiry all the way up to CEO Vikram Pandit, I learned that they do just change the rate to 29.99% for no reason. Here is the email I received today from a Citibank representative after sending an email to Vikram Pandit inquiring what I had done to cause my rates to go up. "Thank you for your recent email to Mr. Pandit. Since your inquiry is related to your Citi(r) Bronze(r) / AAdvantage(r) card ending in XXXX, he has asked that I respond on his behalf. Unfortunately, my recent attempts to contact you by telephone were unsuccessful. I certainly regret any inconvenience or difficulty you may have experienced in your attempts to request a reduced Annual Percentage Rate (APR) through our Customer Service area. Our goal is to serve our customers by providing superior service and products. One of the best ways to achieve this goal is to receive feedback, both positive and negative, from our customers. As the quality of the service we provide our customers is of great importance to us, I have forwarded your comments to management for review. Our records indicate that in October 2009, your account was included in a Change in Terms to the Card Agreement, which proposed to increase your APR from Prime + 9.99%, currently 13.24% to Prime + 26.74%, currently 29.99%. We consider a number of factors when changing terms. In order to continue to provide consumers with access to credit, we need to operate under revised terms, which include an APR change. These changes are being made due to the fact that our cost of doing business continues to be impacted by the challenging market conditions. Based on this total picture, we establish what we believe is an appropriate price for our products. While we realize you are not satisfied with the new terms, we believe the new terms are consistent with the current market conditions. As explained in the notification sent to you, cardholders were provided with the opportunity to opt-out of the Change in Terms, which would have immediately closed your account but allowed you to pay any outstanding balance under the prior terms. Our records do not reflect receipt of your opt-out notification; therefore, the new terms became effective on your January 2010 billing statement." You should also check out this article on Business Insider: http://www.businessinsider.com/citi-customers-reach-out-to-us-2009-10 http://www.businessinsider.com/citi-customers-reach-out-to-u... Apparently this was done to "force" to close their accounts according to one former Citibank employee who commented on the article.
- byoung2 16y ago
  Apparently this was done to "force" to close their accounts according to one former Citibank employee So that's what is happening. This sounds similar to what Amex did last year, except they paid people to leave instead of muscling them out: http://blogs.wsj.com/wallet/2009/02/23/american-express-paying-customers-300-to-leave/ http://blogs.wsj.com/wallet/2009/02/23/american-express-payi...

by byoung2 16y ago

malandrew 16y ago

Actually I did eaxctly what you suggested and contacted them to lower my rates. After escalating my inquiry all the way up to CEO Vikram Pandit, I learned that they do just change the rate to 29.99% for no reason. Here is the email I received today from a Citibank representative after sending an email to Vikram Pandit inquiring what I had done to cause my rates to go up. "Thank you for your recent email to Mr. Pandit. Since your inquiry is related to your Citi(r) Bronze(r) / AAdvantage(r) card ending in XXXX, he has asked that I respond on his behalf. Unfortunately, my recent attempts to contact you by telephone were unsuccessful. I certainly regret any inconvenience or difficulty you may have experienced in your attempts to request a reduced Annual Percentage Rate (APR) through our Customer Service area. Our goal is to serve our customers by providing superior service and products. One of the best ways to achieve this goal is to receive feedback, both positive and negative, from our customers. As the quality of the service we provide our customers is of great importance to us, I have forwarded your comments to management for review. Our records indicate that in October 2009, your account was included in a Change in Terms to the Card Agreement, which proposed to increase your APR from Prime + 9.99%, currently 13.24% to Prime + 26.74%, currently 29.99%. We consider a number of factors when changing terms. In order to continue to provide consumers with access to credit, we need to operate under revised terms, which include an APR change. These changes are being made due to the fact that our cost of doing business continues to be impacted by the challenging market conditions. Based on this total picture, we establish what we believe is an appropriate price for our products. While we realize you are not satisfied with the new terms, we believe the new terms are consistent with the current market conditions. As explained in the notification sent to you, cardholders were provided with the opportunity to opt-out of the Change in Terms, which would have immediately closed your account but allowed you to pay any outstanding balance under the prior terms. Our records do not reflect receipt of your opt-out notification; therefore, the new terms became effective on your January 2010 billing statement." You should also check out this article on Business Insider: http://www.businessinsider.com/citi-customers-reach-out-to-us-2009-10 http://www.businessinsider.com/citi-customers-reach-out-to-u... Apparently this was done to "force" to close their accounts according to one former Citibank employee who commented on the article.

byoung2 16y ago
Apparently this was done to "force" to close their accounts according to one former Citibank employee So that's what is happening. This sounds similar to what Amex did last year, except they paid people to leave instead of muscling them out: http://blogs.wsj.com/wallet/2009/02/23/american-express-paying-customers-300-to-leave/ http://blogs.wsj.com/wallet/2009/02/23/american-express-payi...