dcurrey
Premium
join:2004-06-29 | reply to Selenia
Re: [Rant] Citi....ARGH!
Down side is when you opt out you hurt your own credit score. |
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brockalee
join:2003-08-17
Jacksonville, FL
 ·AT&T U-Verse
| reply to Hesher
I know someone that works for a credit card bank, and I'm sorry for all the people it is affecting.
There is a reason for them raising your (and millions of others) rates.
»articles.moneycentral.msn.com/Ba···you.aspx
The banks are going to do what they can to make money, especially when those changes are coming.
If you have a change in terms like what's being given, there is nothing that can be done. It's not that the person answering the phone doesn't care, (some of them and their relatives are being treated the same way) there are just no available offers to retain your business.
My suggestion: If you have a good credit history with the card, keep it open if you can. When an account is no longer reported, you lose your history with that account.
Do not accept the change in terms. Some accounts will close then and there, but if you're seen as a "good" account, it may stay open until the card expires. Sometimes you can go a couple of years under your old rate and opt back in before your account closes, therefore keeping your credit history.
If you just hate what's happening and don't care about your history, close your account through the website. Sure, you can close your account over the phone, but that directly affects a working mother and the company you're displeased with is helped because now they get to pay her less for losing your account - and they wouldn't even let her try to save it.
Messed up, eh?
Be careful about transferring balances - the transfer fees can get really expensive! But when you're up against 30% interest, it's not hard to break even. |
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dcurrey
Premium
join:2004-06-29
 ·ViaTalk
| said by brockalee  :Be careful about transferring balances - the transfer fees can get really expensive! But when you're up against 30% interest, it's not hard to break even. I think that is the other thing they are raising. Think the norm was 2% I am seeing 5% now. Up until now most would offer transfer for free from time to time.
Or maybe that was cash advances that are going up to 5%. |
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Warzau
Premium
join:2000-10-26
Naperville, IL
clubs: | reply to Hesher
They jacked me in the past year, I opted out. BoA raised my CC that had no balance to 29% wtf? I aint touching that one just keeping it for my Credit Score. |
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brockalee
join:2003-08-17
Jacksonville, FL | reply to dcurrey
No, you're right. BT's fees are increasing as well. |
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Sweet Witch
Be the flame, not the moth.
Premium,MVM
join:2003-07-15
Gallifrey
 ·Comcast
| reply to Anonymous
said by Anonymous :
Try to transfer the balance to Discover. They stated they wouldn't pull crap like that.
No, they'll just cut your available credit from $4800 to $530 with no warning.
--
"While you can teach an old dog new tricks, you simply can't teach him to be a cat."
"Are you my Mummy?" |
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Warzau
Premium
join:2000-10-26
Naperville, IL
clubs: | Really? Then let me guess they start charging you overcharge fees? |
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Sweet Witch
Be the flame, not the moth.
Premium,MVM
join:2003-07-15
Gallifrey
·Comcast
| said by Warzau :
Really? Then let me guess they start charging you overcharge fees?
They did with others but my balance was low enough. I called and they said they used some formula across the board and quite a few were hit with overdraft fees because of that.
--
"While you can teach an old dog new tricks, you simply can't teach him to be a cat."
"Are you my Mummy?" |
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Warzau
Premium
join:2000-10-26
Naperville, IL
clubs: | I like all the BS they are pulling, before the CC laws come into effect. It they want to stop losing money. Just freeze the apr and no longer let those who have a balance charge anymore. Basically OPT them out. |
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dcurrey
Premium
join:2004-06-29
1 edit | Just wait until they start removing all the cash back offers. Hell I probably get close to $1000 a year in cash back and rebates. So far I have only seen American express limit the 3% cash back on gas purchases. Caps at $1000 then drops to 1%. |
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Rexter
YeeHaw
join:2002-11-17
cloud 9
| reply to Hesher
said by Hesher : We keep throwing fake money after good money and it's about to break the backbone of our nation. All money is fake. Santa Clause is closer to being real than money is.
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With every new wave of optimism, or pessimism, we are ready to abandon history, and time tested principles, but we cling tenaciously and unquestioningly to our prejudices. (Benjamin Graham) |
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Rexter
YeeHaw
join:2002-11-17
cloud 9
| reply to Dersgniw
Opting out doesn't close the account. You just agree to no longer use the card. They leave the account open, with the hope that a stray auto charge, may come in, or you may otherwise end up using it. Another words, they reserve the right to screw you over later.
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With every new wave of optimism, or pessimism, we are ready to abandon history, and time tested principles, but we cling tenaciously and unquestioningly to our prejudices. (Benjamin Graham) |
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Rexter
YeeHaw
join:2002-11-17
cloud 9
| reply to Hesher
said by Hesher :If they are going to steal from me like that, I'm going to steal from them. I've already set up an appointment with a bankruptcy attorney for Monday, and I'll be taking all of my credit cards down with it. Keep the house, keep the cars, screw the banks like they are trying to screw all of us. I realize you are angry about the situation, but you are looking at this incorrectly. No one is stealing here. They are simply exercising their legal right to lend money under certain terms. You are considering your legal options. There are no moral decisions going on here. It's just business. This whole situation is a normal, and expected consequence of Government involvement in the credit system. The more Government gets involved the worse it will get. When will we learn Government is almost never the answer.
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With every new wave of optimism, or pessimism, we are ready to abandon history, and time tested principles, but we cling tenaciously and unquestioningly to our prejudices. (Benjamin Graham) |
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GHz
join:2002-01-02
Needham, MA
| reply to Hesher
I would reiterate what a few others have said: Forget about the big credit companies, find a good CU and they won't rape you so hard. If you did not have a balance, then I'd say keep the account open (i.e. opt-in) but don't keep a balance on it. It's better for your credit score to have available credit even if you don't use it (I have 2 cards that I don't use, but keep them anyway). However, since you have a balance, I guess you really have no choice but to opt-out. Reading that letter, it seems like if you opt-out, you won't get hit with the new terms... so I don't think you should declare bankruptcy unless you really can't afford to pay your debts off (at the old rates).
-G |
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Hesher
Premium
join:2002-09-26
Sycamore, IL
·Comcast
·Comcast Formerly ..
| reply to Rexter
said by Rexter :said by Hesher :If they are going to steal from me like that, I'm going to steal from them. I've already set up an appointment with a bankruptcy attorney for Monday, and I'll be taking all of my credit cards down with it. Keep the house, keep the cars, screw the banks like they are trying to screw all of us. I realize you are angry about the situation, but you are looking at this incorrectly. No one is stealing here. They are simply exercising their legal right to lend money under certain terms. You are considering your legal options. There are no moral decisions going on here. It's just business. This whole situation is a normal, and expected consequence of Government involvement in the credit system. The more Government gets involved the worse it will get. When will we learn Government is almost never the answer. See, it is a moral decision for me. I believe in paying back debt that I've incurred. But at the same time, I'm not going to be taken to the cleaners in order to repay it. In my eyes, when you take a good, long time customer and raise their interest rate by 400% by sending them a piece of paper and hoping they don't see it, that's stealing!
It's a shame they do business this way, and with the way the government has been handling things it makes me sick to my stomach. Our poor kids are screwed when they grow up.
Will I file bk? Probably not. I was raving mad yesterday when I made the original post, but I'm not happy about it.
Dcurrey, thanks for the link. I'll check that out.
Brockalee- Really? They hit the person that answers the phone with a penalty for closing an account? Well, I already canceled my citi accounts on the phone about 10 minutes after I got the letter.
According to the phone rep, by opting out, the account is 'closed' right then and the card doesn't work anymore. The also said the repayment will be at the old rate with the same minimum payment....that one won't be around long though, cuz I'll probably just knock it out in the next few months.
Someone questioned my credit score earlier, due to having a 75% balance to limit ratio. I would think the same thing given that information. But, I have way too many credit cards and most of the ratios is not nearly that high. Overall, I'm well under a 50% ratio.
I really find it almost laughable how this government keeps stepping in and they just keep screwing things up worse. Hell, we own GM now and they need more money. We own a nice chunk of Chrysler and Fiat came out and said they don't want to make Chrysler products anymore. And I'm supposed to be ok with them deciding what is best for me and my family as far as health care goes? pfft....not a chance.
Look what the government has done in the last year by stepping in to make things better? Cash for Clunkers? great program....lets borrow all of our future buyers and get them to buy now, right before winter and the slow months.......I used to sell cars and know a lot of people in the business....they create a big demand with little supply, so the consumers were paying STICKER PRICE for a domestic car. Now, the showrooms are empty, going from 20 sales on a Saturday to 0.
1st time home buyer credit? I'm a Realtor and while this plan helped my wallet, it didn't help our economy. Sales in my area are down over 40% vs. last year. Now they extend it and offer repeat buyers $6500? How is $6500 to a repeat buyer helping the economy? If they could buy, they'd buy anyway. The only thing the $6500 is going to do is allow them more negotiating room on the sale of their place....thus bringing down real estate prices even further....not helping them level out. Most of you probably have no idea of how many foreclosures these banks are holding back from the market because they "don't want to flood it".
Unemployment is officially over 10%. We all know it's higher since they don't count people that have quit looking for jobs, or people that haven't worked for x number of months.
I do agree this has been a long time coming and its a cycle that needs to work itself out, but that's just it...it needs to work itself out instead of having a bunch of band aids thrown haphazardly on the dam. The dam can't take many more band aids and it's going to burst one day. |
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GHz
join:2002-01-02
Needham, MA
2 edits | reply to Hesher
Also, if you're seeking a new CC company, consider Pentagon Federal Credit Union (PFCU). You have to be a member of the armed services to join, or you can simply pay $50 to join the NMFA. It's worth it... their cashback card is 5% gas, 2% groceries, and 1.25% on everything else, while the APY is less than 15% depending on your credit score.
-G |
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Hesher
Premium
join:2002-09-26
Sycamore, IL
·Comcast
·Comcast Formerly ..
| reply to Hesher
And yes, I agree. Local banks and credit unions are much much better.
I have my mortgage with a local bank, and one of our car loans with a local bank(the other is 0% through Chrysler).
I should look into a credit union.
Car loans. Argh. Almost a necessary evil when you drive 30K miles a year. Though, for the first time since 1996, I will be free of any car loans in 6 more months! I can't wait for that day. I'm just hoping I can get two more years out of my daily driver (wifes is good as it's an 05' with 70K on it...should last at least 3 more years...hopefully four). |
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Loco
Premium
join:2002-11-09
So Cal
·RoadRunner Cable
| reply to dcurrey
Good info. to know.....thanks ! |
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Rexter
YeeHaw
join:2002-11-17
cloud 9
| reply to Hesher
said by Hesher :See, it is a moral decision for me. I believe in paying back debt that I've incurred. But at the same time, I'm not going to be taken to the cleaners in order to repay it. In my eyes, when you take a good, long time customer and raise their interest rate by 400% by sending them a piece of paper and hoping they don't see it, that's stealing! There's the disconnect. Look at the way you're thinking about vs the way they are. You see it as a personal, and moral issue. That's the basis of your decisions. They are not making moral, or personal decisions. If you go bankrupt and not pay back a dime, will anyone at Citi have hurt feelings. Will any single person there feel insulted or screwed over? The answer is no. They are doing what makes good business sense for them. The Feds got their fingers in the pie, and the CC companies are doing what's necessary to protect their interests. You need to do what best protects your interests. You need to do what makes good business sense for you.
I'm also going to disagree with your second point. They didn't have to send you "that paper." If you look in your credit terms, and agreements you'll see that you basically accepted their right to raise your interest rate, at any time without notice. That letter was courtesy. They weren't required to send it, and they weren't hoping you wouldn't see it. Again you are making it personal, they aren't. With the new rules coming down the pipe, and the uncertainty of Government involvement, they are informing you of what the new terms will have to be in order for them to keep lending. It's all business bud.
Having said all this, let me just inform you, I'm in the same boat. I got this same letter from, well all my cc's. Some of which I have high balances. I'm in deep shit, but I understand there the Credit card companies are coming from. I place the blame on us. We elected a socialist president, who is now doing doing exactly what he said he would do when he was campaigning. Even before Obama, we allowed Congress to create artificial monopolies, to bail-out and reward bad business practices. We already socialized medicine through insurance, now we are about to hand the reigns over to the feds. And why? Because whey promise they can make it free. Why would we fall for that? It's because we are greedy. Are we greedy enough to reach for something so obviously ridiculous? Time will tell.
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With every new wave of optimism, or pessimism, we are ready to abandon history, and time tested principles, but we cling tenaciously and unquestioningly to our prejudices. (Benjamin Graham) |
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Rexter
YeeHaw
join:2002-11-17
cloud 9
| reply to GHz
said by GHz :... find a good CU and they won't rape you so hard.... I'm glad you said "so hard." |
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