Rebel Traders - Stock Market and Economic Analysis

During this entire economic crisis I have seen many stupid and/or irresponsible actions taken by the banks and investment firms. But this one from CitiBank is so stupid and irresponsible that it leaves me astonished that anyone that is a customer is willing to sit back and take this.

If you are a CitiBank credit card customer you are already well aware of your interest rates going up significantly, or you have had CitiBank cut your credit limits, and in some cases had your account held for ransom by telling you to pay the 29.99% interest rate or they will cancel your card altogether leaving you ‘stranded for credit’.

CitiBank has repeatly abused and taken advantage of its customers. Now what I am about to tell you amounts to CitiBank holding a gun to your face and robbing you.

CitiBank says that they will soon be offering ‘rebates’ that will help offset some of the interest rate hikes. But how does one get this ‘rebate’? You have to spend more money by charging more purchases to your CitiBank credit card.

From the Associated Press:

For Citibank credit card holders, there is one way to escape the bank’s rate hikes currently under way: Meet a monthly spending requirement.

Those who meet the spending minimum — in some cases $750 a month — will be able to get a rebate on their total interest charges for that month. The rebate could cover some or all of the interest rate hike. Customers also need to make payments on time to qualify for the rebate.[...]

The change by Citi comes as the industry rushes to adjust to sweeping reforms to start in February that will limit when and how much card issuers can hike interest rates. In a statement, Citi said the actions were necessary given elevated losses from souring loans and “regulatory changes that eliminate repricing for that risk.” [...]

[...] Citi’s move is just the latest in a series of rate hikes, lowered limits and other term changes credit card customers have seen in the past year. [...]

So if you spend at least $750.00 per month then you can get a rebate applied to your account of some amount to help offset the costs of the higher interest rates and higher fees. On the surface that may sound wonderful (if you are naive). But what you are really doing is putting yourself further into debt with the illusion of having a lower interest rate.

What CitiBank is doing is no different than a drug dealer who threatens his junkie by telling him that he can get his drugs cheaper if he buys even more.

If you are still a customer of CitiBank after all they have done to you so far and have taken your tax dollars (tens of billions worth in bailouts), then I must tell you that you need to WAKE UP!

Face the facts people. CitiBank is still in financial trouble, otherwise they would have not needed billions of dollars in financial aid (tax payer money). They got themselves into the mess they are faced with and are forcing YOU to bail them out.

Tell them you have had enough. Cancel your checking account, cancel your credit card, eliminate any business ties with CitiBank. Don’t let them take advantage of you any longer.

CitiBank through its own devices dug its own grave, now they want YOU to be the one that occupies it. It is way past the time for this zombie bank to occupy its own grave.