I just received a letter from CitiBank stating that my interest rate is going up by 10% (from an already ridiculous 19.99% to 29.99%, matching their default rate). But, they say, it will be partially offset by a 10% rebate of the finance charges. At first glance, that may seem like there is no change, and I'm sure the misguided management of CitiBank is counting on consumers thinking that. But a 10% rebate on a 29.99% rate amounts to a 3% rebate on principal. So, there is a 7% interest rate hike (even more of a percentage increase if you started at a more reasonable rate) hidden within this 'good news' info about rebates. Education in America may not be what it once was, but I am hoping consumers can see the real increase here.
I for one am tired of financial services (credit cards in particular) deceiving and abusing consumers and trying to insult my intelligence. So, I am sacrificing my credit rating and defaulting on my $23,000 balance after 25 years of on-time payments. And encouraging everyone I know to do the same. After all, what good is credit if the lender keeps chaning the rules and rates, pulling the rug out from under us. I will continue to pay any fair and honest bill, but I refuse to promote these abusive companies any more. We need to take a stand and reward the few decent companies left out there, and drive these abusive ones out of business.
I hope that between a grss-roots campaign started by the millions of consumers they have angered, and heightened congressional monitoring and tightened regulations, that there will be no CitiBank in a year. And not one person willing to bail them out this time or shed a tear over their demise.
Goodbye CitiBank. RIP (that's pieces, not peace).
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