Citi (C) Raising Credit Card Rates On Millions
Citigroup (NYSE: C) has sharply increased interest rates on up to 15 million US credit card holders just months before limits on such rises come into effect, according to the Financial Times.
The FT said Citi has raised the rates on between 13 million and 15 million credit cards it co-brands with retailers such as Sears (Nasdaq: SHLD).
Citi’s rate increases came about on the same day the government proposed legislation to create a new regulator with sweeping powers on consumer protection.
After the Financial Times broke news of the rate hike, Citi issued a statement saying: "We have adjusted pricing and card terms for some customers as part of our regular account reviews. This is an ongoing process to ensure we offer terms, interest rates, credit lines and products based on individual needs and risk profiles. These changes also reflect the dramatically higher cost of doing business in our industry as we work to preserve the broad availability of credit."
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