citibank yanks rug from under att universal * card- rate jumps from 10 to 25%

[ivan salis]

citibank yanks rug from under att universal * card- rate jumps from 10 to 25%

yep -- credit giant citibank * who is one of the "bailout" banks given govt money (given to keep lines of credit "open" to the public) has yanked its backing of att univeral credit cards ---triggering the interest rate charged to jump from 10% to 25% ( this is for a person with a good credit history --no missed or late payments ) basically doubling the minimum monthly amount owed each month --(hell loan sharks only charge 20% -- 6 for 5) so folks have to tell em to freeze their debit currently owed at the past 10% rate and that the card will no longer be used. (but of course it still has to be "paid off" over time) --in effect they are "shutting you off" credit wize --- ( because who in their right mind would borrow money at the "new" 25% interest rate? )---citibank has in effect took the govt money, promising to keep it in play and then by raising the interset rate thru the roof "froze out" borrowers for accesssing it .(and in effect by shutting down folks line of credit they are calling in all past debt* owed ) --so citibank gets the govt money --(pocketing it )--or only loaning it a "loan shark" rates -- effectivily freezing folks line of credit ( and how does "freezing credit" simulate anything? which is supposed to be the whole purpose of the govt "bailout") and as an added bonus you and I get to pay higher taxes in the future to "repay" the money they got from the govt.

I say if their going to screw normal folks like that (cut off credit / charge "loan shark rates")-- then screw em -- let em fail , since what use are they to the general public ? --why should I thru govt money ( aka as "taxes") bail the blood suckers out?

folks ---we are all being had.

 

[Roadquest]

Re: citibank yanks rug from under att universal * card- rate jumps from 10 to 25%

Ivan,

This is just the beginning. By the middle of April. there will be many changes in the USA.
If the government keeps printing paper money like it's doing.
It's going to be worthless. People are going to stop accepting it.
And ask for silver or gold for payment.

Clayton

 

[ivan salis]

Re: citibank yanks rug from under att universal * card- rate jumps from 10 to 25%

yep good old hyper inflation ( which is what happens when you print lots of money with no "real" backing behind it -- doing that drives its worth down very rapidly and the govt damn well knows it ) -- think germany 1923 * --a wheelbarrow full of money for a loaf of bread -- cheaper to use the bills for toilet paper than buy toilet paper with it -- folks best stock up on seeds and guns and bullets and canned food / water purifation devices --

 

[mrs.oroblanco]

Re: citibank yanks rug from under att universal * card- rate jumps from 10 to 2

GE has done something similar recently.

On Paypal, if you have a credit card (which I do, though I don't have a balance), it is GE Money Bank credit card. Just received a letter about a week or two ago, saying that they are lowering thousands of users credit limits, even if they are perfect payers. Though, the amounts of reduction will be "partly" based on credit history with them.

I have not seen ours go down, but then again, I don't have a balance. We do use it if we buy something on Ebay to make sure we have some extra protection for stopping payments, but then pay it off in full.

It is supposed to take place over a course of 6 months to a year. (They didn't say anything about interest rate).

This is all just the tip of the iceberg. Of course, with Citibank - they have lots of taxpayer money.

You know, this is how the LAST problems (not this downturn) started. Institutions stopped issuing credit, they got some bailouts and help, and in return, they were supposed to loosen up the credit. They loosened it, alright - they gave people who didn't deserve it - credit - on cards and mortgages they couldn't afford, to fulfill the "letter of the law" - which was - start extending credit. So, here we are in the middle of the same circle, again. Only much bigger.

B

 

[ivan salis]

Re: citibank yanks rug from under att universal * card- rate jumps from 10 to 25%

folks with att univeral cards (not a bad ideal for other card users too at this time)--- read all the "fine print" on the stuff sent to you --or suddenly you will find your minimum payment has doubled and your rates now 25% --their doing it "across the board" to all users * they say regardless of "credit history " --have a nice day --- call em ,protest and "freeeze" your account (ps-- do not buying one more thing after being "notified" of the rate hike) or else be ready to get hit with a 25 % interest rate--since you used it "after being told of the rate raise " meaning you basically "agreed" to pay that crazy rate. ( which is fine if your planning to go bankrupt soon*)

 

[mrs.oroblanco]

Re: citibank yanks rug from under att universal * card- rate jumps from 10 to 2

My biggest question to these types of things are this:

Loansharking is illegal - and has been for many years, though people still agree to do it.

So how is 'reading the fine print' and then signing it, make it any different than loansharking? Because the company is registered?

B

 

[ivan salis]

Re: citibank yanks rug from under att universal * card- rate jumps from 10 to 25%

the onky reason they are allow to get away with this crime is simple because of bigtime payoffs (read - political campain contributions / arm wringing by paid lobbist (who most likely got some "dirt") / and most likey outright under the table bribes to "our" politicans)--- there is no legal reason these why loan sharks are "allowed" to charge these rates -- (normal folks making loans to one another ---you and I are capped are at a maximum of 10% per year simple straight interest on a promissory note -- no "compounded" interest either*)

 

[mrs.oroblanco]

Re: citibank yanks rug from under att universal * card- rate jumps from 10 to 2

Ivan,

That's pretty much my point of view, also. A few years back I was following a lawsuit in (I think it was) New Jersey or Delaware, about this very thing.

A private citizen had sued some company for raising their rates based on a bill that he had not paid to someone. From what I remember, the guy was sick or injured (cannot remember which), but he had disability insurance to cover his payments if he got sick. It apparently took the disability insurance company 3 months or so, to make the payments, and the guy got zapped with a huge interest rise in his credit card rate.

It doubled or tripled his rate (way past anything WE would be able to charge), and they made it - what he called - retroactive - meaning, everything he had already on his card before the incident was charged at that rate. (not sure that is retroactive - just what his opinion was of the extra interest rate being charged.)

Bottom line, of course - he lost, but the credit card company did a little "negotiating", he paid it off, but he was dropped and he had a heck of a time with it being on his credit report (90 days past due).

So, it seems, even the judges are warped in this area.

B

 

[ivan salis]

Re: citibank yanks rug from under att universal * card- rate jumps from 10 to 25%

yes it called on the "unpaid" balance --say you "knowingly" charge money at say 10% on your credit card -- and say you have "disability coverage" to pay in case (often offered as a sort of "in house offer" by the credit card companies (we'll just add on so much a month on your "card" --- so if you become hurt or sick --your credit card bill will get paid --ie it all 100% in favor of the credit card companies --they get a kick back from the insurance company and if its used --the card companies are "sure they get paid" win -win for them)

now say it takes the "house insurance company" that the credit card company used awhile to "pay off" the credit card company --and say a few payments are missed because your fighting with the house insurance company * to get them to pay off to the credit card company ----the credit card company then goes back on the all the money you "knowingly" barrowed at 10% and then changes the deal -- its now charging 25% on all money owed *(huge differance)* 1000 owed at 10% - $100 month at 25% --$250 month ---
basically put say at 10% ---1200 per year -- vs --at 25% --$ 3000 in "intereset" -----to fully payoff --10% $2200(a bit over double) vs 25% --$4000 (4 times the barrowed amount!!!!)

the way it should have rightfully worked is like this -- all past debt due is 10% on balance owed and any late fees --- then future debt from then on is 25%*-- however under their "rules" the credit card companies just basically unilaterially "rewrote" the terms of the contract --- you just think "barrowed" that past at 10% ---hah its was really 25% they say --- so how do you like it now?

 

[mrs.oroblanco]

Re: citibank yanks rug from under att universal * card- rate jumps from 10 to 2

I agree, that's the way it SHOULD be.

One of the parts that annoyed me while I was following the story - is that, just like you said - I believe it had it through his card - so - his company KNEW it was going to be paid - right? Or should have, anyway - yet, they called it late 90 days.

His house payment disability insurance didn't do that. (I don't know what else he had, he used the way it was handled by his mortgage company disability insurance as an example during the hearing.)

I just think it stinks.

B

 

[ivan salis]

Re: citibank yanks rug from under att universal * card- rate jumps from 10 to 25%

all the credit card company cared about was "did" we get our pound of flesh "on time" or not? nothing esle matters --no if ands or buts. did we get "paid" yes or no?

 

[warsawdaddy]

Re: citibank yanks rug from under att universal * card- rate jumps from 10 to 25%

Capital One just sent me notice on the rate increase on my cards.14%plusPrime.Never been late,never missed a payment.I think it has to do with my age and that I'm retired.I may miss a whole bunch of payments now just for the hell of it.At my age,I could care less about my credit rating,I don't need it.I did send an email off to Kit Bond,my senator and asked,"how come?"We'll see what he has to say.Capital One said it was because of the economy.

 

[mrs.oroblanco]

Re: citibank yanks rug from under att universal * card- rate jumps from 10 to 2

Same as GE Money Bank Credit Card said - because of the economy.

So, if you use your card - and pay - you get to pay for the company's golden parachutes. (or whatever Capital One does).

I have a Capital One card, but I haven't gotten that letter yet. Again, I have about a $30.00 balance, from something I just bought, so 14%+prime is the same as 7.9% ZERO, if you don't carry a balance.


One thing I have to comment on - I hope you don't leave bills to your heirs like unpaid credit card bills should something happen to you.

My father's penchant for credit cards almost bankrupted me when he died. 13 cards, maxed out - perfect credit (because in his last few years, I paid all his bills - I thought), he maxed them out just before he died, thinking that he'd never have to pay them back - WRONG.

B

 

[ivan salis]

Re: citibank yanks rug from under att universal * card- rate jumps from 10 to 25%

why did you have to pay off your father cards ? were you a co signer? --otherwize when he died his debt died with him --only "his" estate could be attached -- since credit cards are "unsecured debt" -- which is the reason their allowed to charge such high rates of interest .

 

[mrs.oroblanco]

Re: citibank yanks rug from under att universal * card- rate jumps from 10 to 25%

I was half owner of the house they put the lien against.

B

 

[ivan salis]

Re: citibank yanks rug from under att universal * card- rate jumps from 10 to 25%

well that bites pop should have gave (sold for a buck) the house to you before he diied -- then you let em go after that dollar in his estate .

 

[mrs.oroblanco]

Re: citibank yanks rug from under att universal * card- rate jumps from 10 to 25%

We added my name to the deed so that I wouldn't have to pay inheritance taxes after he passed. Pennsylvania charges on anything transferred a year before death (or did then, I don't know about now).

So, the credit card companies went to the probate court and filed liens - that's how I found out he had more than 2 credit cards. And, of course, most wills (including his) says their executor pays their final expenses and final bills - da, da!

I would definitely do it differently, if I had to do it again. Bad advice from lawyers - but, I get to learn most everything important the hard way.

Well, the point was - make sure you do what you have to do, if you decide to 'skip' some payments.

Did you know that in Pennsylvania (and maybe some other states), that if you have an bank account and have someone else's name on it, even if every dime in it is yours, you get to pay inheritance tax on 1/2 of the money? (yes, even if you put every dime in it yourself).





B

 

[ivan salis]

Re: citibank yanks rug from under att universal * card- rate jumps from 10 to 25%

thats why you buy it outright --for much much less than fair market value ( and let em live there "renting it to them on "paper"-- when they die you own the house ) -- that way its not a gift or inheritance issue -- because hey its his stuff and he can sell it for whatever he wants --if he's hard up and you made a good buy who bussiness is that?

 

[mrs.oroblanco]

Re: citibank yanks rug from under att universal * card- rate jumps from 10 to 25%

Like I said - I'd do it differently today.

B

 

[mark.]

Re: citibank yanks rug from under att universal * card- rate jumps from 10 to 25%

..........sounds like it's time for a total money makeover.

Just cut the cards up & pay them off, then use a debit card.

Our life has been a lot easier NOT playing the credit card games anymore..........see ya mark