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Randall of Unionville IN (02/07/09)
Approximately two years ago I received a business card through Citibank for a Citi Mid Prime Business Card. The company sent me a 0% offer via the mail and I inquired and accepted the card that had a balance of 5000. I used the card quicker because of transfering some balances to the card. Approximately a year later we refinanced our home to pay off a number of credit cards. Sadly we were considering bankruptcy at that time, however the Lawyers we spoke with said we had too much equity and assets for that to be feasible.

We relunctantly agreed to a refinance that increased our rate by 2% and our payment by 850 a month. The new situation required us to use our existing credit lines more often to assure that we could still make our house payment on a now 360K home loan. We were sort of hoodwinked into the higher rate at closing than we expected, but we still felt that was the only decision that was feasible.

Unfortunately, my spouse and I have credit cards with Citi, Chase and Bank of America as well as some retail cards. We have entered repayment arrangements with most of them and are still hoping to get a rate reduction on our home to avoid foreclosure. Citimortgage also holds our homeloan which is now also behind.

We used all of our available 401k to pay off or settle with as many cards as possible. Some of them agreed to settle for less than the whole balance. Citibank card has not only refused to settle for 5297 but has not offered any payment arrangements outside of once asking for payments starting at 1500 each. This created a situation we could in no way remedy or justify remeding. They have a lawyer who has threatened for them to garnish my wages and now they are threatening to sue us and hold us responsible for court costs. Unfortunately we have no means to justify payment to them in full since we do not have the money and have other cards with balances.

It should be noted that for quite some time my card was charged with some fraudulent charges (although these are over 60 days and amount to less than 200) Citi for some reason unknown to me feels I've done something intentional. This is not true as Citi also sent me cards I never even used. But like many small business owners once the credit markets went south all my credit lines were taken away. With some of the cards jumping up and adding on interest rates and all kinds of fees.

The consequences for this one card in my business name to take such a hard line and make no reasonable arrangements for repayment are to force us to incur legal costs and file bankruptcy.

If we file bankruptcy we would no longer be eligible for the program to help us lower the interest rate (whom we also paid an escrow payment and are waiting for Citimortage to accept) The results look dismal because we have been in our home for 15 years and have children in HS and College. I'm really uncertain what to do but I am certain that Citibank is acting with malicious intent by not making any payment arrangements or concessions and demanding payment in full.

Lynda of Byron, MN February 7, 2009

Lynda of Byron MN (02/07/09)
I was informed by this company that I have an outstanding bill of 13,000. I asked Sears for a statement of charges and have referred me to Citigroup. They statethey do not have it. I cannot get it from anyone. I have never charged anything to THAT excess. No one can help me. BEFORE I asked for statement of charges, this was turned over to Christian Brothers Debt Consolidation. Than I get nasty phone calls from Resurgent/Sherman about paying them on this account. They have settled for 8000.00 for me. Still no way I would have charged this much.

I do understand that this may interest and late fees. Sears Mastercard stopped sending billing statements years ago. I told them I was not paying anyone anything until I had an itemmized statement. Christian Bros has an escrow accoutn for me but I do not have to pay into that until I am satisfied with the Sears account billing statement I have requested.

It's been reported to credit report agencies as non-payment.

Kristin of Washington, DC February 6, 2009

Kristin of Washington DC (02/06/09)
I was notified by Citicard that my APR would be increasing from its current 6.14% to 14.99%, regardless of my excellent credit history with them. I have been a cardholder for many years and have never been late or missed a payment and have maintained an excellent credit score throughout all of my adult life. I understand the difficult economic climate we're all in, but how do they justify getting a taxpayer bailout and then systematically forcing additional costs on to good-standing customers? These are the same immoral practices as the predatory lending that got their industry in this situation to begin with.

Luckily I have a low balance on this card and will have it paid off in a few months (and would have regardless of this new policy), but in order to avoid the higher APR in the meantime I have to agree to cancel this card and take a hit to my credit score at a time when having good credit is essential. I hope to be a first-time home buyer in the next couple of years, and doing so will require the excellent credit score I have worked so hard to maintain over the years. As a customer, I am incredibly offended by a company that finds itself in hard times and instead of compromising on an acceptable rate and procuring my continued business (which I would have been happy to keep giving them) they would rather make me an offer that severs our business relationship forever and forces me to take a hit to my credit score by canceling the card.

The choice for the consumer is to pay an undeservedly high rate or payoff and cancel the card. Two choices, no compromises for even the best customers, take it or leave it. It probably isn't extortion, but it feels like it. Well, I'm happy to be taking my business to Capital One, who actually just lowered my rate on their card to 4.99% without my asking. Even in these difficult economic times, they seem to get it - if you treat your customers well, you will keep their business. Citicard has lost mine forever.

Igdalia of Kendall Park, NJ February 6, 2009

Igdalia of Kendall Park NJ (02/06/09)
On 1/5/09 my account had a credit balance. On 1/19/09 I called to get a refund check and spoke to Margie. On 2/6/09 I spoke to Kate ID KW48963 and she said I had to wait 14 days before the matter went to the review board. They are playing games because she said there is no record of my refund request on 1/19/09 with Margie.

I need my money. I did a balance transfer for a better interest rate and paid the min. and now I'm having trouble getting the money back. If I'm late one day I get charged a late fee and my interest goes up a lot but if they ignore my request it's OK with them. Kate laughed at me when I said I needed my money right away. I need the money to pay other bills. My electric bill this month was 588. Times are bad economically.

Walt of Leominster, MA February 5, 2009

Walt of Leominster MA (02/05/09)
Every single credit account handled by Citi (Home Depot, Sears, Citi, etc.) has had it's interest rate rise from 7 to 12 percent, this after taking 45 billion in bail-out money. Of course there is the option to opt out of the changes, which results in an automatic closing of the account. These are accountw with variying balances, but uniformly excellant payment records. Of course closing the account(s) has a negative impact on one's credit rating. When I spoke to a supervisor at Citi, I was told that this was simply a move to increase profitablity.

What do you think the consequences are of an interest rate going from 12.08% to 23.99%?

Robert of Kendall Park, NJ February 4, 2009

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