Citi starts closing Mastercards without warning

AP ^ | October 20, 2009

[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...

[driftdiver]

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

[driftdiver]

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

[redhead]

Heh.

[tonyinv]

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.

[truthkeeper]

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?

[cynwoody]

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.

[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

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.

[Puddleglum]

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

[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

[CSM]

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.

[PERKY2004]

Thanks for the ping; interesting story. Given the fact that Citi posted $8 billion in consumer credit losses for its third quarter last week, I'm not surprised that they are closing some accounts.

We have two credit cards, and use only one -- which is paid off in full every month. (I love that 1% unlimited cash back!) The second card (Alaska Airlines) gets us a $50 companion with Alaska Airlines, and is very much worth the $75 annual fee (to us.) Since the second/backup card has an annual fee, I can't imagine that it will be canceled.... and we've already made more than ten times that fee back in airline discounts.

[upchuck]

Drive by poster. Where are the 300 words?

[John.Galt2012]

Didn’t have time this time. Had to go to work and make money to pay my taxes.

[grey_whiskers]

A lot of credit card companies have had problems with people running up huge charges on the bill, then defaulting.

Their "fraud detection" software noted the anomaly in your patterns.

This software sometimes gets them into trouble: as when data miners discovered people who purchased certain tires or ate at certain fast food places, had an appreciably higher risk of default.

If I remember the story correctly, one of the credit card companies tried to put higher charges on these merchants, and got their ass kicked for it ("How dare you stigmatize our customers! Who do you think you are, WE pay YOUR salaries!" etc. etc.)

They beat a hasty retreat.

Cheers!

[upchuck]

Next time you’re in that situation, drop me a FReepmail with the link and I’ll post it for you.

[Prince of Space]

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

I thought of that but hoped that nobody else would! :)

[rbmillerjr]

” 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”

Wow, just got my Citi notice...blah blah,,,valued customer, but due to economic conditions we raising your rate to 27.99 percent.

I think that a financial implosion of epic proportions is about to hit this country...something is wrong when CC companies can charge loan shark rates to people who have good credit and are never late.