Complaint / review text:
Tuesday, September 8,2009
An act of disrespect to students by Citibank: Lenders are trying to hurt students while in school by doubling their interest rates
To Whom It May Concern:
I am a student at Fashion Institute of Technology in New York City. Since 2006 I have taken out a CitiAssist Loan each year to help defer costs while I am studying full time. For each of the first three years, the interest rate on these loans has been 4.25%. Suddenly, the interest rate for my CitiAssist loan this year has jumped to 11.625%.
I know that it is important to pay for my interest while Im in school to reduce my balance when Im ready to start paying my loans back. I am involved in a very intense academic program and am not able to work while in school. Both my husband and I have been loyal Citibank customers for years, including having checking, savings, credit and a business account with your company. We have never been late or missed a payment on any Citi credit card, or on the interest payments for my CitiAssist loan. We generally pay more than the minimum amount each month. Certainly such customer loyalty and responsibility can be rewarded by a return to a lower interest rate on this, my final CitiAssist loan while I am in school.
As requested by a few Citibank managers (Cheri, Matthew - SE707), I sent an appeal letter to Citibank requesting a lower interest rate. After I sent the letter, they requested me to send a fax. After I sent the fax, I waited 72 hours, after I waited 72 hours I called back and another manager (Linda SEKLQ) told me that, once the loan is disbursed the interest rate cannot be changed and in order to request a lower interest rate I would have to reapply to a new loan. What a waste of time and energy!!!
Is anybody out there paying attention to Lenders like Citibank? Are there any regulations regarding increases in interest rate?