The Banks Under Geither: Still Up to their Old Tricks - Our Story

Written by: Mariner on Nov 3, 2009 10:01 AM EST

Banking thieves. Our story.

I have had an excellent credit record (and still do). We sold our old house for a profit in tough times, moved, and bought a new house. We paid off ALL of our credit cards and debts in the process.

We have one credit card... Citibank.. with a low sum on it. And we have a mortgage now with Fannie Mae. Both have gouged us in different ways.

Yesterday we got a letter from Citibank Credit Cards (we have had no balance on it until this month). They sent the following letter.

"We are making changes to your account terms.

TO CONTINUE TO PROVIDE OUR CUSTOMERS WITH ACCESS TO CREDIT, WE HAVE HAD TO ADJUST OUR PRICING. THESE CHANGES INCLUDE AN INCREASE IN THE VARIABLE APR TO 30% and wil take effect November 30, 2009."

I immediately called them. They did not care to here that we had an excellent credit rating, always paid our bills on time, and had not carried a balance. IN FACT, THEY SAID SOMETHING NASTY, THEN SAID THE 30% WAS RETROACTIVE TO TODAY AND HUNG UP THE PHONE ON ME! (I was completely civil, asking why the increase from 11 %.)

Now if I want to use the Citibank card.. those who I helped to unwillingly bail out.. for anything.. with Christmas coming.. we pay 30% interest. And most of the other cards are now at 20% introductory even for good credit, with the option to raise it to 30% with short notice.

The result? We will not use it. We will buy what we can for Christmas.. and no more. It will be a low purchase year for us on anything involving credit.

Fortunately, we are one of the lucky few who have cash to spend with. But we will spend MUCH less. (We never ran a balance of more than $1000 anyway on a card, and usually it was 0)

Stores will see fewer purchases.. resulting in less manufacturing, less jobs.. and no credit essentially to the public who bailed out Citibank, unless they're willing to pay 30 percent interest.

Additionally, under Obama, we purchased a new house in June of this year, after selling our old one and paying off all of our debts. The mortgage, through a mortgage banker, was given to Bank of America, who sold it to Chase, who sold it to Fannie Mae (who we originally wanted to go with because no mortgage insurance would be due... but they would not take the initial mortgage.)

So our mortgage was flipped 3 times by banks in 30 days... just like in the Bush days... under Geithner and company. Additionally, when Bank of America sold it to Chase, both sent us letter saying we each had to pay them, fighting over who we had to pay, and stating that... if we didn't pay them on time, there would be a penalty and our rates would go up. Luckily, we were diligent enough to challenge them and call and write letters stating we would only pay one and would not incur any penalties. They then sold it to Fannie Mae, who we wanted in the first place, but without the benefit of opting out of mortgage insurance.

So with Obama.. who I had high hopes for... the credit card company at Citibank is gouging; and Bank of America, Chase, and Fannie Mae continue last years method of mortgage flipping, which also got us into trouble.

I see MAJOR trouble ahead. We will be fine, but I think of so many people making less, who will suffer.

Tags:

Discuss