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Citi starts closing Mastercards without warning
AP ^ | October 20, 2009

Posted on 10/20/2009 6:41:41 PM PDT by John.Galt2012

No law, including the Credit CARD Act that has started to take effect, prevents banks from closing down credit accounts without warning. Credit card issuers all maintain the right...

(Excerpt) Read more at msnbc.msn.com ...


TOPICS: Business/Economy
KEYWORDS: citi; credit; creditcards; debt
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Credit Bubble quietly bursting????
1 posted on 10/20/2009 6:41:42 PM PDT by John.Galt2012
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To: John.Galt2012

About time. Maybe now we will get some sensible credit policies. I fear it may be too late.


2 posted on 10/20/2009 6:44:31 PM PDT by aliquando (A Scout is T, L, H, F, C, K, O, C, T, B, C, and R.)
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To: John.Galt2012

Citi sucks but at least they are doing people a favor by closing their cards.


3 posted on 10/20/2009 6:44:35 PM PDT by driftdiver (I could eat it raw, but why do that when I have a fire.)
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To: aliquando

“Maybe now we will get some sensible credit policies.”

LOL yeah right


4 posted on 10/20/2009 6:45:08 PM PDT by driftdiver (I could eat it raw, but why do that when I have a fire.)
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To: John.Galt2012
Citi is just about to go under and is trying to minimize losses on bad credit card accouns in order to stay afloat.
5 posted on 10/20/2009 6:47:59 PM PDT by hinckley buzzard (Truth--The liberal's Kryptonite)
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To: John.Galt2012

This might make sense if I had any confidence that they were closing down the right accounts. But frankly, I doubt it.


6 posted on 10/20/2009 6:48:13 PM PDT by Cicero (Marcus Tullius)
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To: John.Galt2012

Mine just sent a notice that the rate was now 30%

(I owe nothing and don’t carry a balance, and have stellar credit).


7 posted on 10/20/2009 6:49:11 PM PDT by Atlas Sneezed (Why not "interpret" your tax returns like the Supreme Court "interprets" the Constitution?)
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To: John.Galt2012

Sometimes, I really wish they’d close my wife’s.


8 posted on 10/20/2009 6:49:31 PM PDT by OldDeckHand (No Socialized Medicine, No Way, No How, No Time)
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To: John.Galt2012

What? No more egregious fees? Well then we are taking our CC’s and going home!


9 posted on 10/20/2009 6:49:31 PM PDT by Republic of Texas (Socialism Always Fails)
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To: Republic of Texas

Can you imagine if Americans actually had to pay their bills without running up credit cards and then declaring bankruptcy?


10 posted on 10/20/2009 6:52:07 PM PDT by princess leah
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To: John.Galt2012

Of course banks have the right to close credit card accounts, why wouldn’t they?


11 posted on 10/20/2009 6:52:49 PM PDT by GeronL (http://tyrannysentinel.blogspot.com)
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To: CSM

‘Play with snakes and you get bit’ ping!


12 posted on 10/20/2009 6:53:38 PM PDT by Hoosier Catholic Momma (Arkansas resident of Hoosier upbringing--Yankee with a southern twang)
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To: driftdiver

did you see the FHA thing? handing out home loans like candy to people who can’t pay the bills.

Barney Frank considers it a form of wealth transfer and supports it.


13 posted on 10/20/2009 6:53:58 PM PDT by GeronL (http://tyrannysentinel.blogspot.com)
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To: princess leah

It would be...the 1950’s!


14 posted on 10/20/2009 6:54:00 PM PDT by Republic of Texas (Socialism Always Fails)
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To: hinckley buzzard
"Citi is just about to go under..."

Oh joy. Guess who holds my mortgage?

15 posted on 10/20/2009 6:54:24 PM PDT by redhead (The libs are SCARED TO DEATH, folks! :o))
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To: aliquando
Maybe now we will get some sensible credit policies.

They are deciding to get out of the business because they see no end to Congress attempting to micro-manage it.

If I were a credit card issuer, I would do the same thing and refer complaints to Barney Frank and Chris Dodd.

16 posted on 10/20/2009 6:55:01 PM PDT by elkfersupper (Member of the Original Defiant Class)
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To: elkfersupper

They can’t do that. Having a credit card is a right. I’m sure I saw it in the Bill of Rights, between free health care and a college education.


17 posted on 10/20/2009 7:01:31 PM PDT by John.Galt2012 (I'll take Liberty and you can keep the "Change"!)
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To: Beelzebubba
I have a balance, have never been late, and pay far more than the minimum due every month....and they also raised me to 29.99%, although I get 10% of that credited back to me if I'm "good." WTF?

Mrs. PoS

18 posted on 10/20/2009 7:05:07 PM PDT by Prince of Space (Don't use a big word when a diminutive one will do....)
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To: John.Galt2012

I received my notice yesterday that if I wanted to continue to use my Citi Mastercard, my rate would be moved from 5.99% to 29% on any purchases after November 1st unless I “opted out”. No skin off my nose. I don’t use the darned thing.

I called the 800 number and spoke to the friendly foreigner and within 3 minutes it was closed.

Their loss.


19 posted on 10/20/2009 7:05:36 PM PDT by Glenn (Free Venezuela!)
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To: John.Galt2012

Unfortunately, a lot of people reading your comment have no idea that your tongue is firmly in your cheek.


20 posted on 10/20/2009 7:06:27 PM PDT by elkfersupper (Member of the Original Defiant Class)
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To: Prince of Space

Perhaps you should rethink the “Mrs. POS” moniker......


21 posted on 10/20/2009 7:09:07 PM PDT by When do we get liberated? (STATE CONTROLLED ECONOMIES SUCK ! LONG LIVE AMERICA.)
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To: John.Galt2012
"They can’t do that. Having a credit card is a right. I’m sure I saw it in the Bill of Rights, between free health care and a college education."

Well... I knew a house, food and a big TV was in there but, I never imagined all this other free stuff was in there too.

22 posted on 10/20/2009 7:11:17 PM PDT by blam
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To: blam; John.Galt2012

You haven’t lived until you’ve heard someone wonder how the gubmint can pay for their wedding.


23 posted on 10/20/2009 7:16:54 PM PDT by JavaJumpy
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To: John.Galt2012

Aren’t they giving warning before they shut down the accounts?


24 posted on 10/20/2009 7:21:00 PM PDT by Clintonfatigued (Liberal sacred cows make great hamburger)
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To: JavaJumpy

Wish I’d known that 15 years ago. Oh well, how about my divorce? Will they spring for that?


25 posted on 10/20/2009 7:22:33 PM PDT by Republic of Texas (Socialism Always Fails)
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To: Prince of Space

Me too, and they ALSO decreased my credit line, which harmed my credit rating!


26 posted on 10/20/2009 7:23:01 PM PDT by left that other site (Your Mi'KMaq Paddy Whacky Bass Playing Biker Buddy)
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To: John.Galt2012

Chase just gave me another 2500 on my credit line. I have a balance and I pay well over the minimum every month. I travel so I use it in hotels and for food and gas.


27 posted on 10/20/2009 7:31:36 PM PDT by Dallas59 (No To O)
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To: John.Galt2012
My card co, about 3 months ago,sent a notice that my rate was raised through the roof - at the same time, I was notified that “due to my stellar account” my limit was raised substantially =

I think they are raising rates through the roof on good accounts to beat the new bill limiting such rate raises = so, thanks a lot, government - all you did was hang us out to dry.

I called this week to see about lowering the rate, pointing out that they may have noticed I haven't been using the card since the hike - but they wouldn't budge. They cited the economy as to unstable - yada yada. This is unusual. Card outfits were always amenable to lowering rates with good customers = I have always paid well above minimum payment and always well before due date.

28 posted on 10/20/2009 7:32:12 PM PDT by maine-iac7 ("He has the right to criticize who has the heart to help" LINCOLN)
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To: hinckley buzzard

> trying to minimize losses on bad credit card accouns

hmm. Too late. But this is what they all should have done, all along, instead of giving credit to people who could not pay, taking losses on those, then ripping off creditworthy customers.


29 posted on 10/20/2009 7:36:28 PM PDT by old-ager
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To: old-ager

Yep, they’ve narrowed it down to just that last thing now.


30 posted on 10/20/2009 7:37:33 PM PDT by John W
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To: Beelzebubba
Same thing happened with my wife with Chase!

Slimy no good bastards!

As of today, ACCOUNT CLOSED!

31 posted on 10/20/2009 7:41:15 PM PDT by unixfox (The 13th Amendment Abolished Slavery, The 16th Amendment Reinstated It !)
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To: hinckley buzzard

Near the end of the article it says Citi had $8 BILLION in consumer credit losses in Q3 including both mortgages and credit cards. And they say that will continue to track the unemployment rate upward (duh!).

We should expect Frank, Dodd, Rangel, Pelosi, Reid, et al to come out soon with a proposed law that will stop them from closing credit cards.


32 posted on 10/20/2009 7:44:10 PM PDT by ProtectOurFreedom
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To: elkfersupper

Only the lurking Dummies and Puffington Hosters won’t get it.


33 posted on 10/20/2009 7:45:52 PM PDT by ProtectOurFreedom
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To: Republic of Texas

“Oh well, how about my divorce? Will they spring for that?”

Perhaps - do you have a “redistribution of spouse” clause anywhere?


34 posted on 10/20/2009 7:50:12 PM PDT by JavaJumpy
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Close it. I don’t care.

Last month I purchased a firearm with my Amex card. Now the $600 or so is not in my normal spending pattern. I have no limit, and the balance due was something like $400.

I got a call from Amex stating that I was nearing an amount that would require that they suspend my spending. I told them that was OK, because I wasnt going to use it any more. The one time event was going to be paid as soon as I got the bill.

They wanted me to pay the current $400 AND the $600 that would appear next month.

I told them to screw. The $400 would be paid by the due date, and the other would be paid when I got the bill next week.

I have never been late. I have always paid it in full.

What is this world coming to?


35 posted on 10/20/2009 8:11:01 PM PDT by Vermont Lt
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To: redhead

“Citi is just about to go under...”
Oh joy. Guess who holds my mortgage?

As long as the Fed gov’t owns over 1/3 of Citi, it’s not going under. The gov’t will make sure of that.


36 posted on 10/20/2009 8:14:47 PM PDT by flaglady47 (Socialists are an Obamination)
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To: JavaJumpy

No, but she does.


37 posted on 10/20/2009 8:21:04 PM PDT by Republic of Texas (Socialism Always Fails)
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To: driftdiver

Happened to me a couple of months ago. They closed an account I hadn’t used in years. Honestly, I was keeping it open merely as a backup, in case my primary card was lost/stolen. Oh well, I can do that without Citi, good riddance guys.


38 posted on 10/20/2009 8:24:46 PM PDT by ThunderSleeps (obama out now! I'll keep my money, my guns, and my freedom - you can keep the change.)
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To: GeronL

yes thats a problem. yes Barney isn’t fit to clean pig feces


39 posted on 10/20/2009 8:46:41 PM PDT by driftdiver (I could eat it raw, but why do that when I have a fire.)
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To: John.Galt2012

Hey if broadband internet is a right then a credit card surely is.


40 posted on 10/20/2009 8:47:23 PM PDT by driftdiver (I could eat it raw, but why do that when I have a fire.)
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To: princess leah

Can you imagine if banks did the same thing!!!!


41 posted on 10/20/2009 8:48:01 PM PDT by driftdiver (I could eat it raw, but why do that when I have a fire.)
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To: redhead

Don’t worry, if Citi goes under the customer service will only marginally decrease in quality.


42 posted on 10/20/2009 8:48:37 PM PDT by driftdiver (I could eat it raw, but why do that when I have a fire.)
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To: driftdiver

Heh.


43 posted on 10/20/2009 8:49:47 PM PDT by redhead (The libs are SCARED TO DEATH, folks! :o))
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To: John.Galt2012

Just walk away.

The debt is no recourse, they’ll have to sue you in Civil court to get any money back, a proposition that most likely will end up costing them more than you owe. Don’t bother filing for bankruptcy either, it just gives the banks (through the courts) access to your paycheck.

Your debt will be sold over and over for pennies on the dollar, till eventually, it will be worthless to any collection agency, and it will simply sit on your credit report.

The Federal government (YOU) has already covered your outstanding balance anyway, so why pay for it twice?

As to your credit score, as you’ve probably already read here and other places, your score is going to be affected no matter what you do. Even those that stay current will have their scored lowered due to actions of the banks.

Oh..and for those that feel that walking away is wrong morally. Total up the amount of purchases on your cards over the years, then the payments, then look at your outstanding balances, chances are you’ve already paid for that which you purchased.

When you signed the card agreement, did you agree to pay 30% interest on previous interest? When they sent you that 0% card, would you have accepted it if you knew that they were going to skyrocket your rate regardless of your payment history? At any moment?

Let them have it, live on cash and just walk away.


44 posted on 10/20/2009 9:50:38 PM PDT by tonyinv (I Want Obama To Fail ..there I said it...now say it with me.)
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To: Glenn
I received my notice yesterday that if I wanted to continue to use my Citi Mastercard, my rate would be moved from 5.99% to 29% on any purchases after November 1st unless I “opted out”. No skin off my nose. I don’t use the darned thing.

I got the same notice. I have perfect credit, so I'm outta there too. What's up with this?

45 posted on 10/20/2009 10:05:27 PM PDT by truthkeeper ("Why oh why didn't I take the blue pill?")
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To: Vermont Lt
That happened to me in December 2007. I had charged $16,000 worth of computers at the Apple store (outfitting a new office). A couple of weeks later, there was a message on my answering machine to call an AXP 800 number. Turned out they'd noticed a change in my spending (normally about $800 to $1500 — gas, groceries, the occasional airline trip). I told them, whatever, no problem, I'd take care of it. The company expense check having already been deposited, I double-checked my BofA bill-pay to make sure the AXP payment was properly scheduled. And that was that.

This past week, I got yet another mailing from them asking me to sign up for extended payment terms on purchases over $100 (or was it $200?), in exchange for 5000 frequent traveler points. I finally did it, having tossed previous offers in the trash (only offered 1250 points, cheap bastards!). Why my signing up for something I will never use is worth 5000 points to them (about $50 in air travel) is beyond me.

46 posted on 10/20/2009 10:22:49 PM PDT by cynwoody
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To: maine-iac7
My card co, about 3 months ago,sent a notice that my rate was raised through the roof - at the same time, I was notified that “due to my stellar account” my limit was raised substantially

There's the dirty little secret we were discussing months ago when they "attacked credit card companies" on behalf of THE PEOPLE, was a farce. We all knew that the folks with poor credit would be cut off and the folks with good credit would initially get rate hikes and/or annual fees to make up for the loss in revenue and non-payment on the closed accounts.
47 posted on 10/21/2009 3:46:46 AM PDT by John.Galt2012 (I'll take Liberty and you can keep the "Change"!)
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To: John.Galt2012

Citi and others should have been giving credit cards to everyone who fills out an application in order to get a foam cup holder


48 posted on 10/21/2009 3:49:29 AM PDT by Puddleglum ("due to the record harvest, rationing will continue as usual")
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To: Puddleglum

CORRECTION: Citi and others should NOT have been giving credit cards to everyone who fills out an application in order to get a foam cup holder


49 posted on 10/21/2009 3:54:03 AM PDT by Puddleglum ("due to the record harvest, rationing will continue as usual")
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To: Hoosier Catholic Momma; CottonBall; TenthAmendmentChampion; Chickensoup; JDoutrider; ...

Debtors are slaves to the lendors....

Thanks Hoosier for the ping.

Dave Ramsey Fan Ping List.

If you would like to be added to the “Live like no one else, so that you can LIVE like no one else” list, feel free to Freepmail me.


50 posted on 10/21/2009 6:02:25 AM PDT by CSM (Business is too big too fail... Government is too big to succeed... I am too small to matter...)
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