Subscribe to Dollars & Sense magazine. Recent articles related to the financial crisis. Citi Raises Rates on CardholdersThis is before new regulations come into effect that prevent them from doing this very thing come into effect in a few months. From The Financial Times:Citi raises card rates on millions By Francesco Guerrera Saskia Scholtes Tom Braithwaite Financial Times Published: June 30 2009 23:59 | Last updated: June 30 2009 23:59 Citigroup has sharply increased interest rates on up to 15m US credit card accounts just months before curbs on such rises come into effect, in a move that could fuel political anger at the treatment of consumers by bailed-out banks. People close to the situation said that Citi, which is about to cede a 34 per cent stake to the US government as part of its latest rescue, had upped rates on between 13m and 15m credit cards it co-brands with retailers such as Sears. Citi's rate increases emerged on the day the government proposed legislation to create a new regulator with sweeping powers on consumer protection and a week after the bank was attacked by some politicians for raising employees’ salaries. Holders of co-branded cards who failed to pay their balance in full at the end of the month saw their rates rise by an average 24 per cent--or nearly 3 percentage points--between January and April, according to a Credit Suisse analysis of data from the consultancy Lightspeed Research. Read the rest of the article Labels: bailout, Citibank, Credit card industry, financial crisis, financial regulation Please consider donating to Dollars & Sense and/or subscribing to the magazine (both print and e-subscriptions now available!). |
