Citi Bank to Raise Credit Card Interest Rates Again

As many issuers race to maximize revenue before the Credit Card Accountability Responsibility and Disclosure Act (CARD) goes into effect February 22, 2010 it seems that the only thing consumers can continue to do is wait. However if cardholders continue to receive letters in the mail, such as those recently sent out by Citi Bank, I truly believe that consumers will soon lose any patience that they have left. So what did these letters say exactly? According to a recent headline they informed many cardholders that their interest rate rose to just below thirty percent. 

According to an article entitled, "Credit Card Interest Rates Jump to 29.99%" this increase is just the beginning of what some cardholders may see in the future. This is because this interest rate increase was on variable rate credit cards linked to the prime rate. At the moment the prime rate is at historically low levels, but once these begin to raise so will the cardholder’s interest rates; well above thirty percent.

It seems that this change is only one of many that consumers are calling questionable. Earlier this month, many cardholders found out the hard way that their co-branded credit card was no longer active. When this happened Citi Bank closed the accounts of multiple consumers who received the cancellation notice only after their card was declined at the register.