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...

[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.