American Banking News recently reported that Citibank has sent letters to untold numbers of customers with good credit that their interest rates will be raised to 29.9%. Customers that received these letters have made their voices heard and are not happy about Citibank’s recent rate hikes.
One of Citibank’s former customers, Michael Garvey, left this comment on American Banking News, “Customers have memories. We won’t forget. Banks that are raising such rates to absurd levels, while at the same time borrowing public money, will feel the pain when we refuse to do business with them for years to come. Goodbye to this customer FOREVER – not just on cards – ANYTHING that is associated with your company.”
Another Citibank customer using the alias, JP, commented “I received that same letter yesterday. I WILL [“opt-out”] CLOSE MY ACCOUNT and NEVER, *NEVER*, NEVER do business with Citibank again! It’s mafia level customer service! (As in: It’s business, not personal.) HA. If I ever get back on my financial feet again they are the last place on earth I will entrust my money to! You can’t get blood from a stone, you know. Let’s all go bankrupt and see where the cash comes from then.”
A customer named Spencer shared this story with other American Banking News Readers, “My mother received this letter on Saturday 10/24/09 that the rates would increase to 29.99%. She has been a Citi customer since 1969. If she wants to keep her rate at 13.24% she can close her account and make current payments. She is on a fixed income and not much more than social security so I help her with the payments. With the raised interest rate means raised minimum payments. We have been paying at least 20% above the minimum payments. This is how they treat long time customers. Oh wait, there is a catch. If you pay on time each month they will give you a 10% interest reduction each month. Can they raise interest that much on existing balances? How much more money does Citi want from the feds?”
Another commenter added, “I own stock in Citi and while this “maybe” good for me in the short term, this is just bad business for the long term. I think this is dishonorable and greedy for a company to act in this manner. This is appalling behavior and CITI should be ashamed of taking advantage of the public while in such a delicate state. Glad I don’t bank with them nor will I ever for their lack of integrity.”
Citibank customers have made their voices clear on American Banking News and other websites. Consumers are not happy with arbitrary and unfounded interest rate increases and unannounced cancelling of credit cards. Unsurprisingly, there were no comments made that applauded Citibank’s actions.
