Credit Card Message???? HELP

[Help]

I received the following message on my statement:

" If you default on any Card Agreement, your rate may increase. The new rate will be the Prime Rate plus up to 23.990%, or up to 29.990%, whichever is greater. These rates apply to your account at the time this statement was printed. "

That last line makes it sound like I've defaulted, but I have not missed a payment. What do you think? Does this mean they are increasing my APR? I cannot afford it!

[The Fixer]

Nope, they're telling you the next time your payment is late/missed, that's what your interest rate will be.

Do whatever you can to not be late, or to pay it off and then destroy the card and cancel the account.

That's what we need to do, boycott credit, not use it except for actual big ticket items where we have a tangible non transient asset (home, car, education).

Things like clothes, meals, vacations, and such should be paid for with money we actually have in our checking or savings accounts.

If just 50 percent of us did this, the credit card industry would be seriously hurt, damn near to the point of death, and they'd be rethinking their terms.

[CitiCardsRPL Employee]

It's a new CIT that is going out across the board. Just make sure your payment is not late and you should be ok. Just FYI because of the new credit card laws, if you default (go past due twice in a year period) there will be a message on your statement 45 days prior to the rate increase.
Just a heads up.

[Tina]

I spoke with CITI last night and closed my account. According to what they told me starting next month ALL interest rates will be 29% period. It doesn't have anything to do with paying late---they are raising the interest rate that high!! My rate was 17 and they told me it would be going up to 29 and I told them what they can do with their credit card. So the card is canceled and I'm waiting to hear back from them for a payment schedule for what is owed on the card. These people have lost their mind!!

[STOP THE B S]

Tina wrote:

I spoke with CITI last night and closed my account. According to what they told me starting next month ALL interest rates will be 29% period. It doesn't have anything to do with paying late---they are raising the interest rate that high!! My rate was 17 and they told me it would be going up to 29 and I told them what they can do with their credit card. So the card is canceled and I'm waiting to hear back from them for a payment schedule for what is owed on the card. These people have lost their mind!!

B.S. YOU ARE A STINKIN LIAR YOUR RATE IS GOING UP BECAUSE YOU ARE A LATE PAY ACCOUNT......stop spreading B.S.

[Tina]

I have never missed a payment and do not appreciate being called a liar!! If you do not believe me give them a call or watch the news.

For you to get that angry at what I said I'm assuming you must work for them. Better find a new job!!

[CitiCardsRPL Employee]

Tina wrote:

I spoke with CITI last night and closed my account. According to what they told me starting next month ALL interest rates will be 29% period. It doesn't have anything to do with paying late---they are raising the interest rate that high!! My rate was 17 and they told me it would be going up to 29 and I told them what they can do with their credit card. So the card is canceled and I'm waiting to hear back from them for a payment schedule for what is owed on the card. These people have lost their mind!!

Tina,

What kind of account do you have? My husband told me a similar statement, but as far as I am aware, apr's are being increased to 29.9% only if you are late twice in a year long billing period.

[APR]

Lots of customers are receiving letters that their APRs are going up to 29.99% even though they've never been late before. You can opt out by a certain date, but your card will be permanently closed. Citi doesn't care about your business if you received one of these letters. Citi considers you high risk and would like for you to transfer your balance elsewhere.

[APR]

http://www.hulu.com/watch/105062/nbc-today-sh...

[CitiCardsRPL Employee]

I think it's wrong, unless the account is in default status (twice late in a year), the interest rate should not be increased. According to the information provided the APR would not increase unless in default, and consumers would be notified if in default 45 days prior to increase.

[citi supv]

its a change in terms. yes people are being raised to 29.99% even if they have not been late recently. there are some accounts that have had late payments and also had the change in terms which means even if there account qualifies for a default "cure" there rate will still remain at the cit rate of 29.99%. allot of them dont have any late payments at all but may have low internal scores due to pays close to min due, returned checks, questionable history with other accts within citi etc.