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Strategies & Market Trends : The Residential Real Estate Crash Index
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To: ChanceIs who wrote (225853)10/23/2009 7:56:56 AM
From: ChanceIsRead Replies (1) of 306849
 
CITI's New APR = 30%, They're Toast

>>>I commented in my linked post at the top of this thread that Chris Whalen was casting aspersions on Citi .... in the extreme. Some confirmation here per ZeroHedge....<<<

Submitted by Bruce Krasting on 10/22/2009 19:49 -0400

I got a nasty letter from Citi Bank recently. They are raising the APR on my credit card to 29.99%.

This is a losing strategy for Citi. Larry Small, the former Citi CEO built the bank into a powerhouse by leveraging global consumers. Now they are stabbing those clients in the back.

I have been doing business with C for thirty years. I have borrowed from them and paid them back a number of times. I don’t owe them a penny and I will be closing those accounts. I don’t want to do business with people who try to put muscle on me. The end result will be that the only consumers who will do business with C are those who have no intention to pay back those loans in the first place. Talk about a bad bank.

The NYS usury law sets the top rate at 16%. I am sure that Citi’s legal guys have found an angle around this. No doubt the rules are more favorable in S. Dakota where this letter originates. I live in NY and last I saw Citi had its headquarters here. This appears to violate the spirit of the NY statute. Possibly AG Cuomo will have an answer. I will ask him.

Citi is owned by the taxpayers as a result of TARP. It is receiving billions in additional subsidies monthly in the form of zero interest rates from the Federal Reserve. One would have thought that they might have gotten the message by now that abusive lending was ‘old school’.
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