Citicard - huge hike in interest rate

WaltD

Citicard Visa seem to be the latest credit card provider to deliberately price themselves out of the market.

Today I received a letter from their "Director of Cards" saying that the standard monthly interest rate for purchases and balance transfers will increase to 2.329% (27.9% p.a.) and for cash advances it will be 2.579% (30.9% p.a.), both with effect from 5th December 2008.

I rarely use this card, and when I do I always pay the full balance upon receipt of the monthly statement. Is this Citibank's way of forcing closure of unprofitable accounts? On this occasion, they have succeeded!

WaltD

Kavanne

If you pay it off each month then why do you care about interest rate hikes? If any of my cards went up I'd be like 'meh'.... doesn't effect me!!

WaltD

Kavanne wrote: »

If you pay it off each month then why do you care about interest rate hikes? If any of my cards went up I'd be like 'meh'.... doesn't effect me!!

I simply like the facility to be available if I ever need it.


WaltD

97trophy

Hi Walt

I just got the same letter this morning - I have the same thoughts as you and I am probably going to cancel this card shortly.

davey9998

they don't want your business - you cost them money

crumpster

I got that letter too, but my current balance on that card is over £1000 so I doubt very much they're not making money from me.

I'll BT the money over to a lower rate card now.

Byebye Citicards (formerly People's Bank) you won't be missed!

Julesbusiness

Yep, I got the letter too. I have about £1,000 on the card and was happy to pay off small amounts at the rate of 16.9%, but to rack it up to 26.9% is a bit much. So, HSBC are offering me 0% for BTs at the moment, so I see it going accross there tomorrow and Citibank can earn nothing off me instead. Although I will use it as a payment card and clear it every month now. Excellent work, Nana Banerjee (Director of Cards), keep the good ideas coming.

webba

I got this letter as well... :mad:

Interestingly, at the foot of the letter Nana from Citi offers an option to 'suspend' the account at the existing interest rate, which is some 10% lower than the new one. Do you reckon that if you take this option it would have a negative impact on your credit file?

battyboimatt

I havnt recived this letter yet, but no doubt it will hit my door mat soon, if it does I shall cancel, they already get £25 a year from me for the card itself

damnit

Referring to the suspending aspect of the letter can anyone tell me if there is a closing date to accept this offer.

I have a card with a balance but I don't really want to be paying 28% and I never use this card any more so would be interested to take up this offer

I've got a feeling the I received the letter but just saw the interest rate hike then through it in the bin

97trophy

WaltD wrote: »

Is this Citibank's way of forcing closure of unprofitable accounts? WaltD

Hi Walt

Citi clearly want to reduce their lending. They want people who run balances to go elsewhere. If you PIF then it makes no difference.

This is the new world of lending we live in.