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Case Details for "Citibank"
Citibank sued for breaking promise not to raise interest rates on credit cards
In or around April 2007, Citibank mailed to new and existing credit cardholders a new “Card Agreement.” In pertinent part, the Card Agreement represented that Citibank would not voluntarily increase rates and fees or change other terms of the Card Agreement until the expiration of the card -- typically two years.
Despite the foregoing promise, in November 2008 Citibank announced that it would be dropping its express promise not to impose “any time, any reason” rate hikes and changes in Card Agreement terms.
Citibank sent Plaintiff a “Notice of Change in Terms” that increased Plaintiff’s APR effective August, 2009 despite the fact that Plaintiff’s credit card has an expiration date of March, 2011 and plaintiff was in good standing with her account. On November 12, 2009, Citibank sent another change in terms notice, changing the APR for purchases to a variable rate of 19.99% effective December 29, 2009.
Despite the fact that Plaintiff was not in default and her credit card does not expire until March, 2011, Citibank did in fact dramatically increase Plaintiff’s APR in violation of its Agreement with Plaintiff. Citibank has unlawfully applied the increased variable APR to Plaintiff’s existing credit card balance which included credit card charges that Plaintiff incurred before the dramatic increase in the APR.
Posted on:07/23/2010
Company: Citibank
Affected Class: All Citibank credit card holders who received a card member agreement promising no APR rate increases and who subsequently received rate increases prior to the expiration of the card
Scope: Nationwide
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