Comments on CreditMattersBlog.com: Citigroup On The Ropes -- Credit Card Customers Fe...

Just got some more incremental information from Ci...

2008-11-29T14:53:09.267-05:00

Just got some more incremental information from Citibank (I called and talked with a supervisor).

Here's the deal:

If you opt out, you will continue to have your current rate (prior to any rate increase). Moreover, your current rate will -- and can -- fluctuate with prime or LIBOR. Thus, even if your account is closed, you'll still see small fluctuations in the rate, because of

I posted this in another thread, but I realize tha...

2008-11-29T13:20:19.350-05:00

I posted this in another thread, but I realize that not every person will see that thread, so I am posting this in all of my active Citibank threads:

Here is the language:

"If you opt out of these changes, you may use your account under the current terms until the end of your current membership year or the expiration date on your card, whichever is later. We will close your

I have now received a rate hike from Citibank. You...

2008-11-25T02:00:52.406-05:00

I have now received a rate hike from Citibank. You can read the story here:

http://www.creditmattersblog.com/2008/11/citibank-to-raise-interest-rates-on.html

Anon, that 1% drop was Citi dropping rates in resp...

2008-11-24T01:19:32.354-05:00

Anon, that 1% drop was Citi dropping rates in response to a falling prime rate. I wish I could tell you that Citibank was responding to your request. As it turns out, all of us with variable rate cards saw our rates get lowered as the prime rate fell.

Many customers are now receiving rate hikes, however, wiping out any benefit that a lower prime rate afforded them.

Hi,I was surprised to see a rate reduction on my C...

2008-11-24T01:10:06.606-05:00

Hi,
I was surprised to see a rate reduction on my CitiAA, It is small (1 point), but still, in this market, a surprise. I have a small balance that recently expired from a 0% promo. My utilization is about 5% on Citi and 23% across the board with FICOs of about 730-750. I had called asking for a rate reduction a couple of weeks ago and was told, "NO." However, when I signed on a few days ago

The latest on Citigroup -- the government's potent...

2008-11-23T18:24:56.293-05:00

The latest on Citigroup -- the government's potential involvement.

Here is the Wall Street Journal's take on the situation: Citigroup, U.S. in Talks to Create 'Bad Bank'

http://online.wsj.com/article/SB122747680752551447.html?mod=googlenews_wsj

And Bloomberg's take: Citigroup, Fed Said to Weigh Plan to Limit Losses on Bad Assets

http://

Anon, hope you're right. In the meantime, get that...

2008-11-23T13:15:34.070-05:00

Anon, hope you're right. In the meantime, get that utilization down. That 62% utilization is really harming your score. All things considered, that's not a bad score you have. It will be higher when you get that utilization under control.

As for all of us opting out, and exerting pressure on Citibank, it's an ideal thought. Won't happen, though. Too many people are dependent on their

I have a FICO of 705 and 62% Uutilization. With my...

2008-11-23T13:08:54.197-05:00

I have a FICO of 705 and 62% Uutilization. With my other card my utitlization is below 50. They raised me from 9.99% to 14.99% I am opting out and will have it paid off in one year, paying that off first before my BOA card. As far as I am concerned they are pricing themselves out of the market.

I think they are making a short term decsion in panic mode. I bet if we all opt out and bide

Just in case anyone is interested: Citigroup Saw N...

2008-11-23T12:32:27.818-05:00

Just in case anyone is interested: Citigroup Saw No Red Flags Even as It Made Bolder Bets (story link here)

And, yes, that AT&T card is underwritten by Citiba...

2008-11-23T03:52:09.835-05:00

And, yes, that AT&T card is underwritten by Citibank. Citibank underwrites a lot of cards. Home Depot is also underwritten by Citibank.

That's exactly what I am saying. Citibank says tha...

2008-11-23T03:39:17.762-05:00

That's exactly what I am saying. Citibank says that even after they close the account that you'll need to keep paying -- but at your current rate.

Read this story on my site (and read the comments): Citibank To Raise Interest Rates On Its Plastic

So your saying that I won't have to have it paid o...

2008-11-23T03:33:10.642-05:00

So your saying that I won't have to have it paid off by 2010? I am so confused. I owe $8000 so I know there is not enough time to pay it off so I figured at that time something bad would have to happen. Unfortunately, I have 3 balances with Citi. One card says AT@T, but in the fine print I found Citi.

Anon, sorry to hear about the APR increase. Try to...

2008-11-23T03:22:35.013-05:00

Anon, sorry to hear about the APR increase.

Try to get that balance down. But, just so you know, even after the card expires, and is closed, you'll keep your current rate. The opt out process preserves your current rate -- all the way until your balance is finally paid off.

Hang in there.

I too received an increase to 14.99. I carry a ba...

2008-11-23T03:13:54.650-05:00

I too received an increase to 14.99. I carry a balance, have never been late and have great credit. Unfortunately, these hikes will put me over the top. I have just been scaping by to keep up with the regular payments. I am going to opt out. I have the card till 2010, then I guess it will be bankruptsy for me and they won't get anymore money. How sad is this world?

Abby, thanks for the message. You know that I agre...

2008-11-23T01:55:35.758-05:00

Abby, thanks for the message. You know that I agree with you on the PIF strategy. Took me a long time to realize that, but once I finally came around (three years ago), it was a real eye opener.

And you're right: Citi is too big to fail. But that doesn't mean it won't get swallowed up cheaply.

Thanks for posting.

CITI has received $25 Billion in TARP funds and no...

2008-11-23T01:22:44.311-05:00

CITI has received $25 Billion in TARP funds and now has a capitalization of under $20 Billion. Credit cards are the least of their problems; they have a bankrupt business plan and massive subprime debt which is still unquantified. What's the good news????? They're too BIG to FAIL; Washington will NOT let ANY of these big banks go under.

That said, anyone who carries a balance on a

Green, well said.Let me just throw one thing out t...

2008-11-22T11:38:43.431-05:00

Green, well said.

Let me just throw one thing out there. Even though the market has fallen farther than Frank worried about, I will say this: the bailout -- if we can even call it that -- did allow for an orderly dismantling. Without these funds, the deterioration of these companies and this market would have been unfreakin believeable.

In some ways, having had a chance to think

RCM, as you said, it's the principle of the matter...

2008-11-22T11:37:44.043-05:00

RCM, as you said, it's the principle of the matter. You carry no balances, so opting out does nothing for you. Your APR is irrelevant.

If enough people opt out of these rate hikes, Citibank will rue the day that it embarked down this path. There won't be enough customers left on the back end when the company needs them.

Of course, with 54 million credit-card customers, it would

RCM I got the same letter this morning, never belo...

2008-11-22T10:11:19.385-05:00

RCM I got the same letter this morning, never below 19.99%. Don't worry we'll bail them out with taxpayer money so they can turn around and charge us 20%.

The problem we're having in this crisis is the separation that's been reported in incomes has completely extended to representation in government. They have no clue how tough the past year has been for small businesses and the

And I know I used the wrong version of principle. ...

2008-11-22T09:09:35.398-05:00

And I know I used the wrong version of principle. I hate when I do stuff like that.

My wife has had a Cite MC for 20 years. We never ...

2008-11-22T09:08:20.086-05:00

My wife has had a Cite MC for 20 years. We never carry a balance, have never been late on payment, and have stellar credit. We got "the letter" yesterday saying our rate is going to prime + 13.99, with a MINIMUM of 19.99 It was prime + 7.99 before, which was still too high, but since we never carried a balance we never did anything about it. I don't know if it was a smart move, but we opted

Anon, don't worry about it. My site is pretty dang...

2008-11-21T22:40:50.080-05:00

Anon, don't worry about it. My site is pretty dang comprehensive. You could start from the beginning of my blog -- back in July -- and get up to speed on this credit game quite quickly.

I'm sure you're very smart. You just need to get up to speed on credit.

Best to you.

I must have been thinking about my cholesterol med...

2008-11-21T22:26:51.394-05:00

I must have been thinking about my cholesterol medicine.

I did Google LIBOR and have a basic understanding. I am not sure it makes a difference, but this change was on an AT&T card that just last week gave CLI of 3k. My card is the Citi Simplicity card.

I really do appreciate all the information. I am not very smart about all this.

Anon, no worries. Just wanted to make sure you hav...

2008-11-21T22:16:37.581-05:00

Anon, no worries. Just wanted to make sure you have the right name. If you searched Google you would not have turned up any results.

Anon@10:01pm, thanks for the comment. And thanks f...

2008-11-21T22:15:56.733-05:00

Anon@10:01pm, thanks for the comment. And thanks for sharing your FICO score. I wrote a story today about customers just like you receiving rate increases. It makes no sense. Citi should not be interested in jacking your rates. And yet, here they are doing just that.

And thanks also for telling me that the CSR said it was across the board. I have not looked at my mail today. I'm really