Cutting a credit card holders limit from $10,000 to slightly over the balance they hold in the account should be illegal. It sets up an overdraft and that triggers increases in the interest rate. If a consumer isn't paying attention it can be a good income. But is it ethical?
15 replies (most recent on top)
Not that anyone actually cares for facts here...
- The situation described wouldn't cause an overdraft fees since credit cards don't have overdraft fees. They could be linked to a checking account and used for overdraft but that isn't the fact pattern here.
- If the poster is referencing over the credit limit fees that isn't likely either. I couldn't find any Citi cards that still have over the credit limit fees. Most companies did away with this after the CARD act.
- The triggering of a penalty rate on Citi cards is for late payments (or a payment that is later returned). Not sure what this person is referencing.
It would be fun to have a nice discussion on the practice but please get the facts correct.
it like the free ballin song by sir tomas petty?
But yeah it's good business practice to cut exposure to risky borrowers. I know SunTrust cut HeLOCs too...
Same I am new to board look forward to lively discussion
What? First time poster on here. You’re thinking I’m someone else.
You definitely are not in the debate club because if anyone converses with you and doesnt agree with you you stop the conversion and post looty loot or try to say bad things about the poster. They way you cant formulate thoughts leads us to believe you are a child....good luck to you and you should work for citi when you are old enough
Anytime someone says something positive you get “you must not work at Citi or the industry”
Anytime someone says something negative you get “you must not work at Citi or the industry”.
People always reply with such to try to substantiate their own created narrative. Often times the trait of someone who’s either low self esteem and are afraid of rejection.
It really isn't you mustn't even work in the industry ...
sounds shady to me
Gotta build up that revenue to pay for Jane’s newest 2 million $ raise.
Mine economy has not stocks and house value is up. Go Citi be prudent till the end!!
Economy has been tanking for 2 years, what took so long.
Its smart business. Economy is about to tank and citi doesnt want to over extend. I suggest the card carrier to pay the tab now!!!
Its unheard of for Citi to be unethical. I don’t think there’s ever been an instance of when Citi has ever played with the numbers in order to incur financial gain. Simply put, that’s crazy talk.
I filed a complaint with the Consumer Financial Protection Bureau. If this happens to you, please do the same. Fee farming is unethical. https://www.consumerfinance.gov/