primitives discuss credit card rates

[franksolich]

http://upload.democraticunderground.com/discuss/duboard.php?az=view_all&address=389x6813325

Oh my.

The perennially-favorite topic to the primitives:

MajorChode  (1000+ posts)        Mon Oct-19-09 08:43 PM
Original message
 
I just got a notice from Citibank that they are tripling my credit card rate

My current rate is 10% and they are raising it to 30%. I have excellent credit and I've never missed a payment with them. In fact, I've always paid my entire balance off in full each month and have never paid them a dime in interest anyway. I've had the card for many years. I can only assume they are doing this simply because they can. They did give me the option to "opt out" of the higher rate if I cancel the card which is meaningless to me since I have a zero balance.

I'll probably keep the card simply because the change is transparent to me and the card still serves the purpose for which I got it in the first place. Still I have to chuckle. Credit cards are now officially the loan sharks of the 21st century. They squeeze people until they can't be squeezed anymore and instead of breaking their legs, they just ruin them financially for spite. I'm not sure which is worse.

It's a really big bonfire, so only the PoP are quoted here.

The orange marmalade primitive:

marmar  (1000+ posts)        Mon Oct-19-09 08:45 PM
Response to Original message
 
1. I hope to see $hiti, Chasethedragon and Skank of America burn ......

AllentownJake  (1000+ posts)        Mon Oct-19-09 08:53 PM
Response to Original message
 
11. Betting against a recovery

If these guys thought things were going to get better, they'd be encouraging people to get balances.

Robb  (1000+ posts)        Tue Oct-20-09 09:51 AM
Response to Reply #11
 
76. You got that right.

The "money" ain't on it.

Robb  (1000+ posts)        Tue Oct-20-09 09:54 AM
Response to Reply #71
 
78. I think it's worse than that

...It looks like they're trying to shed as many customers as they can, no matter the situation.

Think about what THAT might mean.

The lonely star nut primitive:

lonestarnot  (1000+ posts)      Mon Oct-19-09 11:29 PM
Response to Original message
 
51. Welp, I think that these rat bastards smell an implosion about to occur. File complaints, don't let them get away with that crap. Comptroller of the Currency, blah blah you know the drill.

The stand-in for Gloria Swanson, while Gloria Swanson's absent from Skins's island:

Nikki Stone1 (1000+ posts)     Mon Oct-19-09 11:37 PM
Response to Original message
 
53. Just make sure not to charge anything you can't pay off in a month

My CC rate went up a few months ago. I called but there was nothing to be done. I have a stellar record. In fact, I am one of those "deadbeats" from whom the CC companies get nothing because I pay off my balance every month. (I only use it for internet purchases for which I have the money and travel, for which I have saved.) Even then, they raised my rate. Go figure.

The primitive from southeastern Nebraska:

TwilightGardener  (1000+ posts)      Tue Oct-20-09 09:49 AM
Response to Original message
 
75. Crapitol One did that to me too. I have excellent credit and never missed a payment either--but I paid in full every month, and thus I was a money losing "deadbeat". So they raised my interest rate to 23% as punishment. I kept my card because it's the longest-open account I have (helps my credit score), and just continue to pay up every month to piss them off.

Not a Primitive of Prominence, but this is good:

adamuu  (1000+ posts)        Tue Oct-20-09 05:33 PM
Response to Original message
 
84. I just called Citi customer service and gave a representative a chance to defend her company 

Q: I have been a customer since 1998. What have I done wrong?
A: Nothing. Everyone's rates went up.

She said she has been getting calls like this all day. It's nothing personal. Everyone is getting the same notice.

Q: What could I have done differently?
"Nothing" then the same answer.

Q: Are you trying to drive me away?
Q: Do you still want me as a customer?
"Of course." She made a case that the current economic climate forces them to do this.

I pointed out that the current interbank discount lending rate is near 0%. It doesn't get lower than that.

Q: In November 2008, my government lent your company $25billion. Where did the bailout money go?

She had to consult the script for this one, and made it clear by saying "Let's see... it says here...."

She said something about sustainable business, shareholders

Clearly she was not prepared to debate, so I just said my peace and let her go.

I said it is not lost on me that my government lent them money dirt cheap to free up credit, and they are unwilling to lend to me at a reasonable rate. We were their lender of last resort, and they would be bankrupt now if it weren't for that. I said I have not made any bad decisions. This kind of rate (30%) is reserved as a threat for what happens when you default. I have not defaulted. I have done nothing wrong. On the other hand, Citi has made too many risky loans. Why should I be punished for your bad decisions? I said, from my perspective, I wish the government had just let them go bankrupt -- I'd be in the same place, unable to obtain credit at a reasonable rate.

There was dead air. So I just let her go. She said have a nice day.

[BadCat]

Wow.
I have both a MC and a Visa from Citi.

I haven't received any notification of an interest rate increase.

[Texacon]

I have a Chase card .... my rate went WAY up.  5.5% to 9.9%. 

Eat shit DUmmies.  If you went to 30% it is because you are in default.

KC

[Texacon]

On the other hand, Citi has made too many risky loans. Why should I be punished for your bad decisions?

I would have loved to be the one on the other end of the phone for THAT question.

Answer:  Yes we made some very risky loans.  I'm sorry but we were forced by a Democratically controlled congress to make loans to those who didn't deserve them ..... I remember this one person we gave money too .... seems like they were named Bobbolink or some such ... Never got repaid.

KC

[Carl]

They claim to have always paid the card by the month,carry no balance and pay no interest.

What exactly is their bitch?

I know,look at me I am oppressed so give me attention. 

[GOBUCKS]

adamuu  (1000+ posts)        Tue Oct-20-09 05:33 PM
Response to Original message
 
84. I just called Citi customer service and gave a representative a chance to defend her company 

Q: I have been a customer since 1998. What have I done wrong?
A: Nothing. Everyone's rates went up.

She said she has been getting calls like this all day. It's nothing personal. Everyone is getting the same notice.

Q: What could I have done differently?
"Nothing" then the same answer.

Q: Are you trying to drive me away?
Q: Do you still want me as a customer?
"Of course." She made a case that the current economic climate forces them to do this.

I pointed out that the current interbank discount lending rate is near 0%. It doesn't get lower than that.

Q: In November 2008, my government lent your company $25billion. Where did the bailout money go?

She had to consult the script for this one, and made it clear by saying "Let's see... it says here...."

She said something about sustainable business, shareholders

Clearly she was not prepared to debate, so I just said my peace and let her go.

Blah, blah, blah.....

There was dead air. So I just let her go. She said have a nice day.

So now Ty The Bouncer works for Citi?

I have a Mastercard that always has zero balance, and I have no idea what the APR is on it, nor do I care. Unless they tack on an annual fee, I could not care less. I do not believe any DUmmy keeps a zero balance.

[IassaFTots]

Actually......I had two cards with Capitol One, both had a zero balance.  I held them for extra special emergencies.  They had zero balances for over 10 months, no charges, at 5%, and I got notes from them they were upping me to 29.9%  I had the option to opt out as well.  Happened to several peeps I know that aren't deadbeats, and also carry the zero balance.  I opted out.  Thank you very much.

[NHSparky]

There ya go.  Why bitch about a credit card you don't use when they jack up the rate?  It's as simple as making a phone call saying, "Please close my account."

[IassaFTots]

There ya go.  Why bitch about a credit card you don't use when they jack up the rate?  It's as simple as making a phone call saying, "Please close my account."

Exactly.  I lived that long without it, I don't need it.  I have others with a 7%.  So, eff em.

[NHSparky]

I'm actually learning to live without them, period.  It's an eye-opening experience.

[IassaFTots]

It has been so long since I have had any credit to even use.  Two exes filing bankruptcy right after a divorce, and a little spell of unemployment can wreak all kinds of havoc.  Once I paid those cards off, I swore I would only use what I could pay off.  (I prefer not to use my debit card at the grocery or the gas station, and sometimes it is inconvenient to get cash.)  Not using credit has made me really think about what I buy, and I am finding that it isn't as difficult to live within my means as I originally thought.  I am actually considered frugal by my friends, which is ok, because it is my boyfriend that is the miser.  I will never, evah be that damn cheap.   

[USA4ME]

Actually......I had two cards with Capitol One, both had a zero balance.  I held them for extra special emergencies.  They had zero balances for over 10 months, no charges, at 5%, and I got notes from them they were upping me to 29.9%  I had the option to opt out as well.  Happened to several peeps I know that aren't deadbeats, and also carry the zero balance.  I opted out.  Thank you very much.

I concur.  I know a couple of people who have good credit/paid on time and their cards jumped in in rate.  Don't know which bank the card was with tho.

.

[thundley4]

So now Ty The Bouncer works for Citi?

I have a Mastercard that always has zero balance, and I have no idea what the APR is on it, nor do I care. Unless they tack on an annual fee, I could not care less. I do not believe any DUmmy keeps a zero balance.

Several companies are starting to tack on annual fees just for that reason.  They don't make money on zero balance accounts, so they have to find another way to do it. This is another thing that can be traced to the recent law passed by congress to help consumers.

[The Village Idiot]

You need quotes around the word help there. ""

[Celtic Rose]

Several companies are starting to tack on annual fees just for that reason.  They don't make money on zero balance accounts, so they have to find another way to do it. This is another thing that can be traced to the recent law passed by congress to help consumers.

Of course they still make money.  They get money from every retailer the card is used at. They just don't get it from both sides 

[jukin]

One reason is the new credit card law that makes it harder for the CC companies to weed out the deadbeats.  Now I know this is hard to believe but by forcing the deadbeats to have access to credit the CC companies had to squeeze the good customers.  I too carry balances for the grace period and have had most of my rates jacked up. Expect fees for those free cards you have and any good customer rewards (miles, points, etc) to be removed so someone that shouldn't have a CC can have one and skip out on their owed balance.

Once again the liberal mantra of making the responsible pay for the irresponsible has had it inevitable bad outcome from good intentions...but it did make them feel better for a short time.