Yesterday, I nearly had heart failure when I opened up my Citibank Citicards VISA statement, and saw that it was double the usual payment. After getting off the phone with Citibank to ask them what happened, I felt like I got paid a visit by the loan shark.
The Interwebs are a consumer's ally
I prefer to use blogging as a way to help inspire and be uplifting. Rarely do I rant or go off on people, places, or things. But when I do a rant, like I did with Oprah and her January 09 weight gain issue, I do so because I am so blown away by the ridiculousness that something has to be said….and to be honest, in this particular case, Citibank made me feel like they were some big bully stealing lunch money from a good kid just because they felt like it. Frankly, I hate bullies!
But then I remembered, naw, I’m not powerless against a corporate bully, I have the interwebs, and I can fight back. This is the power of social media for the consumer, and brands had better start taking it more seriously because consumers don’t have to lie down and just take it anymore.
Loan sharking 101: Scare them into paying up
Essentially, Citibank Citicards lost me as a VISA customer more because I felt forced to choose between an outrageous payment or hurting my credit score if I didn’t pony up more dough.
What pisses me off the most is that what they are doing is using the fear of affecting my good credit I’ve worked so hard for as a way to gauge me for more money. That is SO wrong on so many levels.
Citicards doubled my interest rate from 15% to 30% because, and I quote, “….in order for us to provide better services to all our customers.” WTF! How is this customer, me, getting better service by having to fork over a huge chunk of cash which is enough money, in my case, to pay my iPhone bill and car insurance plus some happy hour drinks.
My other option was to stay at the 15% but then my account is now officially closed. Here’s some reasons closing a credit card can hurt your credit rating. Those were my two options from Citibank, and because of my current financial situation, I had to close the account because there is no way I could pay double. None.
Disguised as options
Citibank calls those options; I say those are not options. That is like the Hitman asking you, “Would you like me to stab you or choke you?” What does it matter, I’m still gonna suffer and then be dead.
In this Citibank situation, no matter what I choose I am financially screwed, and for no reason other than, “….because we can. It says so in the fine print.”
What Citibank’s statement really means is that because they made mistakes passing out credit like it was Halloween candy, and then a whole slew of people and their bad credit habits got their institution into financial troubles, I, an excellent long term customer am being punished for other people’s mistakes.
My VISA is as old as the interwebs
I have been an excellent Citibank VISA customer for 14 years without ONE problem. I got my credit card in 1995, that’s practically when the Internet came into our homes. For 14 years of being a good, loyal customer, I get no break whatsoever. Financially, I have been in a pinch myself, but I always paid my payment on time. I have never been late with them thanks to automatic payments.
You WANT to keep a customer like me
Not to toot my horn, but frankly, I’m the kind of customer a credit card company wants to have, pays on time, never complains, and spends money…for 14 years. During my pre-IPO millionaire days, you should have seen the charges I put on that card. Interest rate gold.
And yes, I am going through some financial tough times right now, but better believe that will not be the case for long. I plan on having those millionaire days again because if you did it once, you can do it again.
But more importantly, in general, I have a good credit rating, and I've shown some stress, but I pay all my cards and bills on time. Why can't Citibank see the whole picture, not just a sliver of it?
My hopes for buying a house sag like a wilted plant
The closure of this card will affect my credit mainly because the VISA will fall off my credit reports. This VISA card is my oldest card, again, 14 years, and future creditors like to see long history, and now it will be gone. All that hard work is gone.
This card closure will affect my ability to get a home loan as a first time buyer, and one of the reasons I moved to Phoenix recently from the Bay Area is so I could buy a home. Can you see my hopes of buying that home start to vanish? Poof!
Maxing out
Closing cards also signals that you’ve maxed out or are close to maxing out your card. In my case, yes, I was close to the max limit, but who isn’t in this tough financial time?
But more importantly, what does it matter if I make my payments on time? I have never missed a payment, and I didn’t close my credit card because it was a decision I felt best for me, I closed the card because Vinnie waved brass knuckles in my face and said, "Pay up 30% interest or take it in the knees."
Out of principle, I will not give more money to a bully, so okay, I'll take it in the knees, and then go share my story on the web.
Not all customers are credit equal
In the fine print, Citibank essentially says they can just raise your interest if they feel like it when you venture too close to the max limit. How is this fair at all? I get that Citibank is a business and has to make money, but do you have to treat your good customers like the delinquent ones?
Again, I can understand the rise in interest rate if I have started to shown signs like late or no payments, but I have done nothing like that. My assumption is that my summary just triggered some software program to lump me in with everyone else because the numbers put me in some category that triggers, “Double their interest rate.”
I thought long and hard before closing the card, but I just cannot suck it up and pay that doubled monthly payment at the new 30%. My immediate needs take over future needs, and I really HATE that Citibank put me in that position, especially when I have done nothing wrong.
Forget writing customer service. I will blog and tweet instead
After talking to a service rep, then higher up the food chain to a manager, they both told me I could write a letter to Citibank customer service, but seriously that’s a useless Dilbert procedure. No thank you.
Instead, I shared that I’ll take my dissatisfaction to my blog and Twitter because I have no doubt that I am not the only one Citibank Citicards has taken advantage of this way. Even if we don't get anything resolved with Citibank, we can at least feel like we've bonded with others. Again, this is one of the beauties of social media, finding a commonality with others and feeling less alone.
Were you an excellent credit card customer and then got interest rate gauged? What did you do?
