Comments on: Uncle Sam Winks Again at Citigroup’s Credit Card Fees

By: devildog666

devildog666 — Sat, 22 Aug 2009 13:07:53 +0000

When all those notifications came out upping the interest rates, I paid off all my credit cards. I had over a dozen and used to play musical credit cards moving around debt to finance my business, now the companies are starting to cancel my cards because I haven’t used most of them in years.

Recently I bought a new car and the finance officer said I had the highest FICO score he had seen in five years. (I live in Ohio where your either looking for work or gave up looking. Not many good credit scores here.) Because I have a history of paying off my loans early they claim I wasn’t an attractive borrower to the banks and the loan rates weren’t that great, go figure. I didn’t take out a loan.

In this economy if you have to use a credit card to finance purchases, you’re in trouble, but it can also be said a dollar spent today will have 50 cents purchasing power tomorrow.

By: JayD

JayD — Sat, 22 Aug 2009 03:04:44 +0000

Rising credit card fees seems to be the name of the game these days. Fortunately I have a very high FICO score and plenty of credit. I can pick and choose whom I wish to be in debt to. I was puzzled by the fee increases because my score is so high but raise them they did. Good credit scores and loyalty be damned. It is not just Citigroup that raised their fees. Captial One did it not long ago. American Express did it just recently. There are others doing it as well and I am sure every credit card company will be jumping on this fee-increase bandwagon in due time.

I use my lowest fee credit card for regular use and then I use other cards for special offers of low interest rate fees for limited times. These special offers run for about a year at 3.99%, 2.99%, and I just got one for 1.99% APR. But their regular purchase rates are in the high teens or in the 20+ APR range and I will not support those companies by using their cards.

By: Uncle Sam Winks Again at Citigroup's Credit Card Fees : NO QUARTER-Debitcard & Creditcard News

Sat, 22 Aug 2009 00:20:03 +0000

[...] Original post: Uncle Sam Winks Again at Citigroup's Credit Card Fees : NO QUARTER [...]

By: CG

CG — Sat, 22 Aug 2009 00:18:27 +0000

LD, interesting as I had not reasoned that these fees amount to a tax. As you noted, one has to wonder about how those such as Citibank will survive charging rates of 20-30% interest, plus penalties, plus annual fees, plus the portion of every charge, is it a portion of the 3% discounted to seller? Especially as you say, had they not engaged in undisciplined lending practices over the last 5 years, and perhaps not engaged in undisciplined investing practices too, they would not be in this predicament. There will be a lot more arrogance and gall to come unfortunately… Perhaps as taxpayers we need to insist on a complete audit of the Federal Reserve and insist on some meaningful transparency.

By: sybilll

sybilll — Fri, 21 Aug 2009 23:03:17 +0000

I got a leaflet from Citi/MasterCard, one day before the new credit card law was imposed, that (yippee!!), my rate was being increased to 23.49%. Never been late, and only owe $600, so I know what I will do. But, in these horrific economic times, some people just have to resort to credit. I did at one time, and am $600 away from being free from this demon. And, yes, I DO see this as a tax. Others far more financially savvy than I can make compelling arguments, but, at the very least, I feel that rate is usury, especially since they used MY money to stay afloat. Appalling.

By: Linda Anselmi

Linda Anselmi — Fri, 21 Aug 2009 22:41:08 +0000

When a company, which is a ward of the state, increases credit card fees can it be said to be the equivalent of a tax increase?

Excellent point LD. I hadn’t considered that side of it at all. I think we are going to see to what extremes corporate entities are willing to go to regain those huge returns. They love that “big money”. Problem is those days are long over. And won’t be returning for a generation or more. But our government is tied to their purse strings and doesn’t want to tell them so. Because that would mean government would have to recognize their own “big money” days are over as well. And without govt reigning the corp. interest, they will continue to inflict more and more damage as we all go swirling down the drain.

By: Peggy Sue

Peggy Sue — Fri, 21 Aug 2009 22:29:55 +0000

I’m at the point where I think borrowing money from the Mob or the banks is irrelvant. They both break your legs and the interest charges are out of town. My husband and I are down to one credit card and we’re clearing the balance as fast as we can.

They can keep their annual fees. From now on? I’ll take a page out of my father’s book: pay in cash or don’t buy at all.

Screw ‘em!

By: tzada

tzada — Fri, 21 Aug 2009 22:17:17 +0000

This country is in trouble. Since many many Americans are waking up to our peril, maybe we can end things. Like in take back this country.

I was lucky to be able to get out of debt to credit cards. They creep up on you. One day your interest rate is this and the next month it is huge. Really for no good reasons, except I should have read the small type. I sold something I didn’t wish to sell, but the relief when it was over was wonderful.

Divorce that credit card company and find one who hasn’t made that choice yet.