Sunday, October 25, 2009

Someone has to pay for the Citi Field naming rights

A few months back Citibank purged a bunch of credit card holders that were not sources of revenue. That included me and Mrs. Grindstone b/c we don't carry a balance so we got dumped off to another bank that apparently can see the value in having a relationship with customers that aren't leveraged to the their eyeballs.

It was a pain, but I understood Citibank's decision. However, now we are hearing word that Citi is going nuclear on existing cardholders. The word on the street is that Citi just upped the rate to 30% for nearly 6 million cardholders many with excellent credit. Citi will allow people to opt out and many will, but this seems like an act of arrogance or desperation.

Either Citi thinks they can get away with modern day usury or they know something that we don't about the state of their balance sheet. Remember those accounting rules that were relaxed back in the spring? Well, it may have made things appear better on the surface while the reality was things were still deteriorating. It's uncertain at this time which is true, but watch for this to become a story this week.

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Other interesting reading from the weekend....

This sounds like something from the Daily Show or The Onion - Rich Germans Demand Higher Taxes.

Former Celtics Star Pursued by Creditors - Several National Basketball Association sources, among them friends and former teammates of Walker’s, said the 33-year-old player may well have squandered much of his $110 million-plus in career earnings.

Cheers!

1 comment:

The Hermit said...

HSBC VISA dumped me for not keeping a balance. I always paid in full every month. I figured that they got enough from the vendors. But they got greedy. Now I use a debit card. No muss, fuss or charges.
Now they will miss out on the 2% that they nicked the vendors. Everyone should do it.