Citigroup (sharp practice?) What do you think?...

Citigroup (sharp practice?) What do you think?....

After seeing on the news the finacial trouble Citibank may be in regarding sub-prime loans, i thought i'd post an experience i had with Citifinance (part of the Citigroup)

I have a loan with Citifinance to whom i already pay an extortionate interest rate. I took out out the loan when i was semi-desperate so thats my own fault.

On the 2nd or 3rd of jan,two or three days ago, i recieved a call from one of their reps (the girl who originally sold me the loan) asking if i wanted any more cash..?? (i don't consider myself to be a good risk) (and neither do a lot of other people )

She said i could have another £2,500-£3,000 if i wanted it, tomorrow,in fact, this is when alarm bells started ringing in my head
just in case i had credit cards that wanted paying (cleared up) or bills after the xmas period.

So i asked some details.... interest rate,term of loan,monthly payments etc.
It was then that she informed me that this extra cash would be added to the loan that i already had with them and refinanced this time with an interest rate of 22% apr !!!!

When i pointed out that i thought that this was a CRAZY IDEA because i pay a lower rate of interest on the loan that i already have with them, (never missed a payment) and even my credit cards have a lower .APR She insisted that in my case she still thought it would be a good decision..?? i asked why..?? and she said she just "DID"

lol.

i then reminded her that she called me!, not the other way round and that i didn't particually need the £3000.
thanks but, no thanks.

Am i right in thinking she was trying to turn me over? (rip me off?)

Is this kind of thing in the banking code of good practice?

Has anyone had similiar experiences?

Can anyone make me a better offer..?? (that one's a joke.)


p.s. thanks to Duzey,i wasn't sure if this was a rant.

reply to post by callmedave


Call
Good post, stared and flagged.
I think this should be on the ats site. This is a good example of what the banks are doing to rob all of us of our hard earned cash. So far as I'm concerned this should be criminal activity. Good think you heard the alarm bells.
I have had one or two similar phone calls, not quite to the extreme as you described.

reply to post by RedGolem


many thanks,

surely this is how people with money problems get themselves into even more debt.

am i right in thinking Citi can then claim they are owed more money to increase what they say they're worth?

hope that makes sense? ?

That I don't know. But the point is the just got a three thousand loan at twenty two percent. That is a lot of money coming back.
This practice is exactly why I think the government should not bail out people who default on loans. If a bail out is to happen it should be the banks that pay for it.

reply to post by RedGolem


not just the 3000 either,

they would also get extra by upping the % on the loan i already had?!!!

i was gonna post on ats but i wasn't sure where to put it?

the title was gonna be
Banks and the Illuminati,they're robbing b*stards

lol mods please feel free to move

[edit on 6-1-2008 by callmedave]

[edit on 6-1-2008 by callmedave]

[edit on 6-1-2008 by callmedave]

Originally posted by callmedave
... She insisted that in my case she still thought it would be a good decision..??...

Sure it's a good decision...for Citigroup!
Next they'll want to offer you a home mortgage on which you can pay interest-only for 50 years. Never be able to burn that mortgage contract, never be able to own your home. Wow, another great decision for the consumer.

BTW This reminds me of another famous line...we won't be in Iraq "for one day longer than is necessary." Another good con job line. Another good sales pitch, like "if you can find that car/etc at a lower price, we'll beat that price"--yeah, by a penny beats any price.

With the drawdown of manufacturing jobs, what's left to placate citizens is to relabel financial services, such as loans, as "products". And label hamburger making and infusing water and juices with vitamins as "manufacturing". Why, look at all the "manufacturing" jobs created in a water bottling plant when you add vitamins!

You were brilliant to ask questions. Thanks for sharing your experience.