Credit Card Interest Doubled!?

Posted by admin on April 3, 2009 under Uncategorized | Be the First to Comment

PUSH BACK!!!  Checked your Credit Card Finance Charge Lately? 

 

My credit card bill displayed an interest rate this month that was more than double the last 6 months. After catching my breath and digging up the past 6 bills I was able to notice that my rate was 7.24% for the past 6 months, and now it was 14.99%. Yikes! Help!

 

I called the bank (Citibank in this case) and ended up speaking to a customer service person overseas with a heavy accent. On top of being frustrated I had to double my attention in hearing what she was saying just to be able to make it out.

 

After I questioned this, she fumbled with the keyboard a bit, I imagine going back and forth seeking a script titled “what to say to the customer at this point”, at which point she blurted out nervously; “Oh, you’ve been a customer for seven years (actually it has been longer) and we do value you as a customer. You are precious to us.” That is a new word used by customer service… precious? She continued: “So, I can bring your rate down to 9.9%”.

 

What? No, no good? I have made payments on time; I am not even near my credit line limit. What the heck happened?

 

So I told her. No, I want the rate I had before. She asked for a moment, repeated the customer service pre-formatted sentence and then said: “I will transfer you to an Account Specialist.” I heard some music and voila, on came an English speaking, no accent man that proceeded to pretty much repeat what she had said, minus the pre-formatted “you are precious” line.

 

I started by telling him how frustrated I was and trying to figure out what the heck happened! He stated that on my January statement there was a note printed on the bill about the right to “opt-out” from the interest rate hike. What? The right to opt out? How did I miss this?

 

I fumbled through my bills which I now had all laid out in front of me, and questioned him. “Ok” I said, “I have it here in my hands and at the bottom of the bill is the following. They are offering me chocolate.” He interceded and lightly added “would you like some chocolate?” I probably needed it at this point, yet continued to read. “My mileage summary. An offer for paperless statements, which if I had accepted I would have had to print all these statements right about now, might have thought it was too much work and just passed on the whole thing all together. Oh, and they are also offering me fruits. However, nothing about this finance hike.”

 

Then, and only then, he started to explain what this really meant and came up with some alternatives. Well, I can offer you a rate of 9.99%. I responded: “No, I want my 7.24% rate back!”

 

His explanation was; “If you opt-out that means that you will keep your current rate, or the prime rate (a rate made up by your bank, plus the finance rate, this supposedly being close to the government interest rate.) You can continue to use your card until the expiration date on your card”. I quickly looked at my card and it expires on 03/2010. So, I have nearly a year to use it at this rate. Heck yeah! I want to keep the rate!

 

“What happens when that date comes around, do you guys simply close the card?” He replied “Yes, we do”. “Can I call and say I want to keep the card and what is the current rate?”  Silence. More silence. “Yes, you can”, he replied.

“Aha!” I exclaimed. “Why didn’t you tell me that in the beginning then?”

He replied “Well, we are not supposed to suggest that, but you asked so I can answer.” It’s good to ask questions he added.

 

Wow! That is how things roll.

 

Put your reading glasses on and go “r e a d” all of your bills and all of the “fine print” on each one. Also, wouldn’t hurt to compare finance rates from the past months with the current ones. Then there are the phone bills, that is a whole other article.

 

Suggestion: review bills from July 2007 to present date to establish a pattern.