My rate went from 9.74 to 14.99 around January as well, which I only let pass uncontested because I had recently had several accounts closed and needed to maintain an available credit line.
In May/June my account insisted there was no balance due, zero. I checked it repeatedly for almost 2 weeks and could see there was extra money in my budget but couldn't place where it was coming from.
On June 10 they called to say my payment was 2 days late. While on the phone, I posted the payment through Bill Pay (next-day delivery).
On June 12 my online statement showed a late charge ($39.00) and the rate had defaulted to 29.99, which I promptly protested. The representative agreed to remove the late charge and said she would have to file a request for rate review, since the computer wouldn't let her restore it.
On June 24 there was no credit or response yet, so I called back. The next rep was at least very honest about it. It seems Citicards recently reprogrammed their computer so that no rep can remove a late charge if the account is presently current. And no request for rate reconsideration was ever filed. He filed one, and I had a written response in 3 days. I defaulted on my account, but they would review my account and reconsider lowering the rate after I made 12 consecutive on-time payments.
I have written offers from June 14 to set up payback provisions removing all late fees, with payments that are actually lower than the pre-default amount. I now have 5 written positions and 2 verbal ones that all contradict each other.
Being single with no kids and no seizable assets, I have a means to an end of sorts. The interest rate can't get any higher, and all it can cost me by refusing to pay is late fees. I will no doubt inevitably have to pay them, but federal banking laws will force them to charge it off their books in 120 days. That degrades their securities and deprives them of desperately needed immediate cash flow.
Such a series of events need only occur in 1 out of 158 accounts to strip all profit out of it. Short of another massive bailout, Citibank is bankrupt, while most of the other banks are actually buying back preferred shares the government holds against them. Citicards' attempt to double and quadruple its interest/profit margin is a self-destruct mechanism.
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