Despite pledges to try and decrease the amount of financial burden on already overtaxed cardholders, Citigroup announced a wave of rate increases for some current cardholders over the next few months.
- After pledging that it would no longer reserve the right to raise interest rates at any time for any reason, Citigroup now plans to start raising rates for customers who have not had an increase in at least two years. The move appears to backpedal from a commitment that Citigroup executives made to Congress in early 2007 when they tried to fend off greater regulation by promising not to raise rates until an account expires. Citigroup attributed its decision to the “difficult market environment”...