Consumer Blog
New rules help consumers at major credit card company
One of the nation's largest credit card issuers is going pro-consumer in a couple of its rules. Citi (Citigroup, Citifinancial, Citicorp) is eliminating two common industry practices:
- Universal default - most cardholder agreements say they can raise your interest rate on your card even if you're late on another company's bill (like your phone bill)
- Any time, any reason increases - most agreements allow rate hikes any time for any reason, as the name implies.
Citi says it will only raise rates if you pay them late, bounce a check, exceed your credit limit, or if the prime rate (which they have to pay to their lenders) increases.
Most consumer advocates are happy with the announcement, hope other companies follow, and acknowledge that it's probably being made because the new Congress has credit card companies in its sights.
Technorati Tags: Citi, cancel credit card, credit, credit rating, credit score, universal default, moagoconsumer, consumer protection
Posted by on March 6, 2007 10:40 am :: Comments (4) :: Permalink
4 Responses to "New rules help consumers at major credit card company"
says:
December 7, 2007 10:04 am
can a collector take any of your disability money
says:
December 7, 2007 11:23 am
To Claudia:
A debt collector's first priority is not to "take" money - they want you to send it voluntarily. If you do that, it's your choice where the money comes from.
If you don't do that, they may try to take money. But they can't take any money without a court order, which requires them to sue you first. If that happens, you need a lawyer, and he/she can advise you about which parts of your income they can go after.
says:
January 16, 2008 10:17 pm
I getting a dissolution of marriage after ten years of marriage my husband filed. Im on a back to work program with soc.sec. disabily (my income is 43,00.00 per year), I have migraines, I really had no ideal my marriage would be ending, Sept of 2007 everything was good. I just got a new 2007 ford edge (interest 7.9 with a payment of 570.00) and my house payment is 1200.00 per month, my student loan payment is 150.00 per month and Ive got 1000.00 a month in credit card payments. It looks like after the marriage is over I'll be in the red around 500.00 per month. I still have the migraines but Im trying to get a second job to pay off the credit cards. I filed bankrusbly (I know its not spelled right, sorry)after I first started getting the migraines in 1991 and I just got my credit better. I'm thinking about filing again but I really dont want too. What do you think?
says:
January 17, 2008 10:33 am
To Kathie:
Bankruptcy is a drastic step (as you found out from the last time). Before I took it, I would talk to a good credit couselor. (Emphasis on good - there are a lot of scams out there.) To find a reputable counselor, contact the National Foundation for Credit Counseling online or at 800-388-2227.
