Posts Tagged ‘loan shark’

Citi jacking up interest rates on their credit cards: what you can do to avoid paying 29%

Sunday, February 22nd, 2009

It should be illegal for credit card companies to raise the rate on an existing balance. Rate changes should only affect future purchases. What is going on now is just loan sharking.

One fellow with a Citi rewards card received a notice in the mail last month that the rate was going from 9.99% to 29.99% unless I opted out in 30 days. I couldn’t understand why they were doing this to me, because I’ve never missed or made a payment late.

He called up the company, and the rep explained that the reason for the rate increase was because “its becoming more expensive for them to borrow money”. I opted out on the phone, and paid the balance off last week.

Rather than opting out, you can try to make a deal over the phone. Another fellow with Citi went from 12.99 to 19.99% interest. He called and was able to negotiate 3.99 for the next 9 months.

Other credit card posts:
Travel rewards credit cards