Annoying Citigroup fact of the day

The bank is jacking up credit card rates as fast as it can, before new rules take effect


Andrew Leonard
July 1, 2009 7:10PM (UTC)

How the World Works is considering a new regular feature: Enraging Wall Street Fact of the Day.

Here's today's entry, courtesy of the Financial Times:

Citigroup has sharply increased interest rates on up to 15 million U.S. 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 percent stake to the U.S. government as part of its latest rescue, had upped rates on between 13 million and 15 million 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.

The rate increases fell mostly on borrowers who failed to pay off their monthly balance in full. Let that be a lesson to us all.

Advertisement:

Andrew Leonard

Andrew Leonard is a staff writer at Salon. On Twitter, @koxinga21.

MORE FROM Andrew LeonardFOLLOW koxinga21LIKE Andrew Leonard

Related Topics ------------------------------------------

Credit Cards How The World Works

BROWSE SALON.COM
COMPLETELY AD FREE,
FOR THE NEXT HOUR

Read Now, Pay Later - no upfront
registration for 1-Hour Access

Click Here
7-Day Access and Monthly
Subscriptions also available
No tracking or personal data collection
beyond name and email address

•••






Fearless journalism
in your inbox every day

Sign up for our free newsletter

• • •