Iniard Watch

Wednesday, December 21, 2005

Citibank Simplicity Card - Simply Misleading



I normally don’t float prime time blogs, but I am sitting through the encore presentation of “A Very Brady Christmas” on ABC Family which my family seems to be into for some reason. I was able to sneak the laptop onto my corner of the couch.

Anyway, I received my offer in the mail today for the new Citibank simplicity card. This is the credit offer you probably saw advertised heavily stating that you don’t have to pay late fees if you are late on a payment. They go on to say that all you have to do is make a purchase every month. It is part of their “keep it simple” card program. I am glad I got the offer today, because it gave me a chance to read the fine print. Here is the Simple truth on the Simplicity Card Program:

Credit card companies SUCK, and so does this offer. It is true, that they do not charge late fees if you make a purchase. However, they do expect payments to be made on time and reserve the right to raise your interest rate to the default rate if you are late on a payment for this or any other card or credit account you have. This would take my 7.99% interest rate up to 30.64%!!! It would stay at this rate until the balance was paid in full. So if I transferred a $3000 balance to this card, and made a late payment, I would not be charged the $35 late fee, but my interest rate would add an additional $56 a month in interest until the balance it paid in full. I would then transfer the balance to another card, but some people would be in a position that they can not do this, and would basically be strapped even more than they were to begin with, and for a very long time.

So after reading the fine print, I am very disappointed with Citibank. They are going all out to lure people prone to making late payments to sign up for this new simplicity card, and the fine print is setting them to take advantage of everyone that does fall for it. I was able to overlook the fact that Citigroup is partially owned by some rich Saudi dude, but now I must look down on Citibank, for what they are.. blood sucking bottom feeders. I think I will just pay the occasional late fee and pass on this one.

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