NEW YORK—Just in time for the holiday shopping season, Citigroup has announced it is raising interest rates for some of its credit card accounts.
Nearly 20% of Citi customers could receive a notice in their November billing statement or a letter from Citigroup saying that their rate has increased 2%-3%. Citigroup said the increase is necessary to make up for losses in its global card division, reported LowCards.com.
Citigroup said the rate increase is necessary to help it return to profitability in a difficult environment. Citigroup reported losses of $1.59 billion in the third quarter. The company has already cut 12,900 of its 352,000 jobs worldwide with another 9,100 expected in the next 12 months, LowCards.com said.
“A number of other issuers are in the same situation as Citigroup, with the same market conditions and large losses. All issuers are looking for ways to increase revenue, minimize their risk and future losses and turn things around. Consumers should not be surprised to see some other issuers making the same rate changes.” LowCards.com said.