I have been a cardholder for over ten years, with a perfect payment history. While paying my bill last month, I noticed the rate had jumped to 19.99%. I called Citibank and was told that a "disclosure" had been sent to me indicating Citibank would raise my rate to 19.99% should any negative information be found in my credit report. The representative told me to get a copy of my credit report, rectify the negative information, and then call back to get my rate lowered.
Well, I got a copy of my credit report, and guess what? There was no negative information! The only thing that could remotely be construed as negative was a SATISFIED collection account. It arose out of a dispute I had with a local power company over 2 years ago, for less than $200, and it was PAID!
I called Citibank back and spoke to a Ms. Huber. She informed me that they could use that information to raise my rate to 19.99% for two years. She further informed me that, even if I never had any negative payment information, Citibank could and would raise my rate to 19.99% because they felt my outstanding debt-to-available-credit ratio was too high!
I told her to close the account, and I will now do everything I can to pay it off. This is a perfect example of a company that will screw the consumer out of every cent it can!
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