Increase in rate unexpected

I was recently changing to receive my credit card statements via email. one card, of Citi, i had cut up and was paying down. i called Citi to ask them for a new card because in order to change to receiving it online, i had to have the card in front of me in order to read the security code, so i have to receive a new one. i received a new one and also a letter stating that my interest went from 13.99% to 19.99%. i have the choice of accepting that increase, or turning it down, but owing the entire amount. i’m currently looking for work and an increase in interest does not help me. is ti worth talking to an agent at that company to request that the interest not be increased due to my unemployment? i had not even used the card and was paying it down for a long time. thanks.

Absolutely call them and ask for a interest rate reduction. Start by saying you’re a long time customer making payments on time and if you don’t receive a reduction you’ll be forced to find another company who will provide a better rate. Be firm and it’s none of their business that you’re unemployed. I would mention it until you find it necessary to default on payments.

Let them know that’s why Citi laid off about 35000 of its own people because they don’t work with their debtors.

I think they have you listed for two accounts now. The one you owe at 14% and a new one at 20%, make sure the account numbers are the same. talk to an agent to justify the increase. I wasn’t NICE with these folks. they borrow money from the fed at at about 3% let them know that you are also willing to file a charge on them with the Federal Trade Commission then you want to discuss this with a manager because you need someone’s name when you contact a congressional representative in relation to predatory lending practices. You will be amazed at the number of “contructive repayment ” programs these companies don’t reveal to you unless you break their stones.

For example:

  • I pushed them into a half pay agreement on a $3000 dollar debt thereby eliminating one year’s worth of finance charges.
  • I came up with $600 and they matched it so I got the debt down to $1800. The original debt was over $8000 but it took me on a learning curve over two years to figure out that I would never get this debt paid at 21%.
  • I owe $700 on this debt and I expect to be debt free of them and their cards in 3 payments.

They do all of their business out of Delaware and South Dakota by the way because most US states have banking laws that would never allow them to get away with what they get away with. Don’t be nice.Stop using their card clear your debt and then think of using a different card. PS I got Discover down to 10% and MBNA down to 3%,JCPenney I got down to 0% so you know what I am telling you is true.

I just had the same thing happen to me with another card (that I have
a very good record with). The letter said they were increasing the
rate “to maintain profitability on my account”.

Right. Like they’re not making *enough* money off of me already.

I found this link to help consumers try to negotiate a lower rate:

http://www.kiplinger.com/columns/ask/archive/2007/q1128.htm

It’s pretty aggressive, but times like these, I guess that’s what’s needed. If anyone is successful in getting your rate(s) lowered, please post here and let us know how you did it.

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