Just got off the phone with a rep from Citi, they are in the process of switching many customers to a 'world' card that has no penalties for going over the limit. (Customer just needs to pay enough to get balance below revolving credit line each month). Does anyone have comments on why they would be doing this if credit risk/default is so high right now? Are they trying to get more business from low risk customers to offset other losses? Or is consumer credit risk in the media exaggerated?
They did the same to my card, without telling me first. Citi lost $$$$$ on subprimes. So, it decides to take even more risk to break even. It plays martingale.
I believe that it is a bad move, which might bite them in the ass. They should have learned from making such a mistake, but it looks like they are going for all or nothing. One thing you have to keep in mind that the subprime mortgage is where they took the hit. CITI is huge company with many different departments. If one was unsuccessful, it doesnât mean that everyone else did just as bad. Thatâs where the CEO should of gotten involved and said â enough is enough, letâs not take any more risksâ