October 29, 2009
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News: Citibank Raises Interest Rates
By now most Americans are aware of the new credit card reform legislation that will soon become effective. In wake of the new legislation, lenders have embarked on a mission to find every loophole available that would enable them to swindle Americans. Most likely there isn't a credit card customer in the nation that has not been touched or affected by the banking industry's predatory actions. Citibank, the third largest credit card issuer in the U.S., has been making quite a stir in recent weeks with its changes in policies. The company's latest move to increase interest rates to nearly 30 percent on a select group of cardholders has caused outrage and heartache.
Many families have become dependent on their credit cards to carry them through the current economic conditions. Raising interest rates on any particular account holder that has displayed irresponsibility in meeting the terms of repayment makes sense. However, reported incidents of credit cardholders who have had their interest rates jacked up to nearly 30 percent testify they have had the account for years and have always paid on time. Citibank has justified this recent hike indicating it is necessary in order to "provide our customers with access to credit."
As of yet, Citibank hasn't targeted all credit card accounts so one might wonder if this is just a random selection and if not, what criteria did the company use in the selection process. Having such knowledge would certainly make those Citibank customers who have not yet been hit with the interest rate increase some idea on how to plan a counter attack. The whole scenario can certainly make one feel uneasy. Meanwhile, back in D.C. lawmakers are debating moving the enactment date of new legislation that would prohibit banks from participating in this type of predacious activity to December 1, 2009 rather than the scheduled February 22, 2010 date.