Consumer complaint received 2017-01-21
Company: CITIBANK, N.A.
State: PA
Product: Credit card
Issue: Other

Complaint:
Citibank Violated the Regulation Z and the CARD Act of 2009. 
Previous complaint unresolved, as issue was never addressed by Citibank. Citibank has never addressed the issue. XXXX Months prior to the card Act of 2009 ( 6 years after having my card open and enjoying a fixed rate of 9.9 % ), I received a letter stating that Citibank has made a decision to adjust my rate for new and existing purchases to a variable rate of 29.99 %, but I could call and opt out of these terms, and my account would be closed, and payable at the current rates. This was not a result of being late or credit worthiness, but a corporate decision to change my rate prior to the CARD act prohibiting these practices. We received two of these letters, one for another account with a much smaller balance ( which we closed, and they made no effort to keep open ). I immediately called in to close my account. There was no way I was willing to pay 29.99 % on more than a XXXX balance which was currently at a 5.99 % rate. Upon calling in, the associate attempted to retain me as a customer telling me that I had great credit history and have been excellent with my card. I expressed my concern and unwillingness to accept the new terms and would like to close my account. The agent informed me that since my account balance was not purchases, the 29.99 % would not apply to my EXISTING balance. 
I would still have my Rate for life, and once the 5.99 % expired on the other balance transfers it would go to the 9.9 % rate, not the 29.99 % and not to worry. 
I questioned the associate multiple times and was assured that my EXISTING balance would not be subject to this outrageous adjustment. I was also informed that Citibank had did this to all of their customers, and that once the market rebounds, that they will be lowering the rates. I once again expressed my concern about the existing balance being adjusted and would like to close it to be safe. I was assured that my existing balance would not convert to the 29.99 % variable rate. I agreed to keep the account open only under the terms as the associate outlined, which turned out to be totally UNTRUE!!!! As time has passed, the misleading information from Citibank has gotten worse and worse. I have been called a liar that my account was NEVER at 9.9 %, one agent stated she has worked for more than 20 years and never saw a fixed rate of 9.9 %. They have reduced my credit line to put my balance utilization up and impact my credit negatively. At one point I was advised to take a pre-approved offer I received from Citibank with an 11.99 % fixed rate for a new product, write on the application, " APPLY TO MY EXISTING CARD '' and return it, and they could adjust my outrageous rate on my existing universal card. Which, obviously did not work, but I did it any way at their advice. I have been told that " you are out of your default period, the 9.9 % will be back on your card '' ( when was I ever in default? ). " You have been a great customer, never late with any payments, you will have no problem getting that 9.9 % rate back. '' The list goes on and on. Every interaction has started with a call recording disclosure, I would think these calls should be available. Through it all, I have never been late with a payment, even when the rate is outrageous. They keep telling me that I am a great customer, admit to the error, but refuse to honor their commitments of 9.9 %. Instead they apply temporary adjustments, but refuse to do that any longer. My account has been converted to a XXXX XXXX, and I feel that this is an effort to hide historical data.

Company public response: Company has responded to the consumer and the CFPB and chooses not to provide a public response
Company response to consumer: Closed with explanation