My Personal Finance Journey

Personal finance observation, musing and decisions in a journey toward financial independence by 2020 with at least $3 million.


By Topics

Overall:
0. About (10)
1. My Progress (139)
2. Car & Home (107)
3. Credit (138)
4. Banking (33)
5. Saving (49)
6. Investing (308)
7. Taxes (89)
8. Spending (74)
9. Misc (97)
A. Archive (49)



MONTHLY ARCHIVE

Feb 2014 (3)
Jan 2014 (6)
Jan 2012 (1)
Apr 2011 (1)
Mar 2011 (1)
Feb 2011 (1)
Jan 2011 (1)
Dec 2010 (1)
Oct 2010 (1)
Sep 2010 (1)
Aug 2010 (1)
Jul 2010 (1)
Jun 2010 (1)
May 2010 (1)
Apr 2010 (1)
Mar 2010 (6)
Feb 2010 (2)
Jan 2010 (7)
Dec 2009 (3)
Feb 2009 (4)
Jan 2009 (8)
Dec 2008 (1)
Jun 2008 (2)
May 2008 (2)
Apr 2008 (5)
Feb 2008 (3)
Jan 2008 (15)
Dec 2007 (32)
Nov 2007 (6)
Oct 2007 (8)
Sep 2007 (9)
Aug 2007 (24)
Jul 2007 (2)
Jun 2007 (1)
May 2007 (3)
Apr 2007 (4)
Mar 2007 (4)
Feb 2007 (13)
Jan 2007 (6)
Dec 2006 (3)
Nov 2006 (7)
Oct 2006 (7)
Sep 2006 (6)
Aug 2006 (4)
Jul 2006 (10)
Jun 2006 (1)
May 2006 (3)
Apr 2006 (2)
Mar 2006 (6)
Feb 2006 (6)
Jan 2006 (3)
Dec 2005 (1)
Nov 2005 (9)
Oct 2005 (8)
Sep 2005 (13)
Aug 2005 (25)
Jul 2005 (16)
Jun 2005 (17)
May 2005 (19)
Apr 2005 (20)
Mar 2005 (24)
Feb 2005 (23)
Jan 2005 (36)
Dec 2004 (40)
Nov 2004 (34)
Oct 2004 (17)
Sep 2004 (21)
Aug 2004 (59)
Jul 2004 (37)
Jun 2004 (31)
May 2004 (29)
Apr 2004 (52)
Mar 2004 (49)
Feb 2004 (49)
Jan 2004 (31)
Dec 2003 (48)
Nov 2003 (52)
Oct 2003 (29)
Sep 2003 (8)
Aug 2003 (5)
Jul 2003 (2)
Jun 2003 (2)
May 2003 (5)
Apr 2003 (2)
Mar 2003 (2)
Feb 2003 (3)
Jan 2003 (29)



 

A Price Hike from Citi and One Less Customer

Contributed by mm | March 2, 2010 6:57 PM PST

6399-scissor.jpgWhen the credit card overhaul was signed into law last year, many predicts that the banking industry will find new ways to replenish billions of lost revenue. Since then, this is becoming more and more of a reality, and it finally happened to me, even though I have a pristine credit history and have a 780+ credit score.

To be specific, Citi just sent me a letter saying I need to pay for my credit:

"We're writing to let you know about an important change we're making to your account. Effective April 1, 2010, an annual fee of $60 is being added.

The reason we are making this change is to maintain the quality of our service amid the rising cost of doing business. However, because we value you as a customer, we wanted to give you an opportunity to have the annual fee credited back to your account.


Here's how it works. Each year, we'll credit the $60 fee back to your account once you have made $2,400 in purchases during the year. That comes to an average of $200 in spending a month, an amount you can reach by using your card for purchases you already have, like gas, groceries, cell phone plans or your cable bill.

As always, you have the right to opt out of this change and close your account. Please read the Notice of Changes in Terms and Right to Opt Out beginning on the back of this letter so you are fully aware of all your account changes. If you have questions, call 1-866-915-9425.

Sincerely,
Ken Stork
Citibank (South Dakota), N.A."

Admittedly, I haven't used the card (a Citi Home Rebate Card) much lately, and I can understand the logic of the bankers. Citi will win either way by removing a dormant account (and therefore saving the service fees and any capital tied to back up the $6,000 credit line), by pocketing the $60 annual fee, or by making enough money if I charge the aforementioned $2,400 to the card.

Fortunately, no-fee cards are still abundant in the market, and many are willing to pay me for 1% or more in cash back (including several cards from Citi ironically). So bye bye my Home Rebate Card! A quick toll free call later, I have one less credit card account to worry about.

More PFBlog Articles You Might Find Interesting ...


This Post Has Received 3 Comments. Share Your Opinions Too.


Add Your Comments










Remember personal information?

Help to reduce spam






Evan Commented on March 2, 2010

Just a heads up it is not all citi cards. I called customer service when it hit the news a couple weeks ago and they told me it didn't affect my cards.


mapgirl Commented on March 3, 2010

Oh I still have my Citi Dividend Rewards card, but I BT'd all the balance off when they changed my interest rate from 11% to 15.9% APR. Thanks, but no thanks. I have yet to see an annual fee notification. I am sure I will also have a fee hike too. For now, I sit and wait. We'll see if I want to keep this card in another year or so.


Flexo Commented on March 3, 2010

I haven't seen an annual fee notification yet (I have a Citi World Mastercard, active, no other Citi cards) but I am sure this is going to become more common.



Read More ... 140 Posts In The Same Category










This page was last rebuilt at January 27, 2014 07:32 AM PST.
 

RSS FEED





PERSONAL FINANCE BLOGS I READ

Consumerism Commentary
Get Rich Slowly
My Money Blog
All Financial Matters
The Simple Dollar






.

Error 500 - Internal server error

Error 500 - Internal server error

An internal server error has occured!
Please try again later.



Copyright 2003-2014, PFBlog.com. All Rights Reserved. (Privacy Policy)