Citibank - Changes to credit agreement (rates)

Chef1980uk

Hi guys, i remember a thread on here where a load of us citibank customers recieved letters stating our accounts were being taken over by CCAM. I've just recieved another letter stating

"under the terms of the sale CCAM have the right to request certain changes to your account."

The changes below are as follows:

Purchases (monthly) 1.662% -> 2.079%
Purchases (p.a rate) 19.9% -> 24.9%

Balance Transfers rates = same as above

Cash advances (Mo) 2.079% -> 2.912%
Cash Avvances (P.A) 24.9% -> 34.9%

My question is, does this change for existing debt on the card? the limit is £1500 of which i'm pretty much maxed at so can only pay the minimum which is around £50 each month of which £27 makes up the interest. How much will that change if these new rates affect it?

Jigga

Without seeing the exact figures (i.e. actual debt (around £1,500) & actual payments (around £50)) & not knowing if there is a cash advance in there too, we can’t give an exact interest cost but:

Yes, the rate change will be implemented upon all of the debt.

Your monthly interest cost will be about £31/£32.

This calculator may help you get a more accurate answer: http://www.whatsthecost.com/creditCard.aspx

dazza.mk

Will in all likelyhood effect all of it unless anything is at promotional rates.

Note you do have the option to reject the rise and keep your current rate, although this will mean the card will be closed to any new spending / transfers.

Chef1980uk

£1488 / £51 Thanks for the calculator, thats awesome

Dazza, i know i can refuse it and have the card closed but fear the debt will just be sold on to a tougher collection company who insist i pay off more each month, as is the case for my wife. If the difference is only a couple of quid then i can live with that, i just had horrors of paying £50 off with £48 going on interest as is the case for my HSBC one

PNPSUKNET

they cant sell it on as long as you keep up the payments, its a legal right to reject the increase

izools

Absolutely, if you reject the increase nothing changes whatsoever except your rate stays the same and you aren't allowed to spend more on the account. They won't / can't sell the debt on, and they won't / can't report any information about the account closure to your credit file in a way that would have a negative effect

Chef1980uk

ok thanks, will ring them in the morning to refuse then asi could do with the account being closed and paid off.

INT1

Glad I closed my account with them now!

PNPSUKNET

we closed ours when they got rid of aa advantage card point