12/03/2008 - CITIBANK: DOUBLE DIPPING
I opened a letter from Citibank on Monday to read that they are boosting the interest rate on my Citibank Mastercard from 6.7 percent to 14.99 percent! I phoned Citibank to remind them that I have excellent credit, I've never missed a payment and there has never been a problem with my account. I was told: "Mr. Coleman, this has no bearing on the status of your account. This is due to market conditions." Read more ...
On the news this morning (KIRO TV 7, Seattle) I saw a story where they reported that Citibank customers all across the country are angry with this rate increase. A spokesperson from Citibank made this ridiculous statement regarding the interest rate increase: "We believe our products are competitive in the marketplace."
All things being equal, I would have to agree - that's why I have kept my Citibank card.
But things are not equal. CITIBANK RECEIVED A MASSIVE FEDERAL BAILOUT! Their competitors did not. And now Citibank is going BACK to the well to strip your pockets clean of anything they can get.
I think part of the problem is that Citibank does not understand simple mathematics. During the phone conversation I had with them, the overly-polite Citibank phone rep (who knows that her call is probably being monitored) assured me THREE TIMES that it was only a "modest six or seven percent increase."
You do the math: 14.99% - 6.7%. I think she rounded down a little. Meanwhile, her supervisors are rounding up, rounding up every precious dollar they can suck out of you, whether it be through your monthly credit card bill or through the taxation power of the Federal government.
One way or another, Citibank will get you in the end.