Credit Card Lies and Games

I was outraged when I received a letter in the mail on Saturday from Citibank (disclosure: I am a stock holder) saying that the interest on my credit card was going up to 24.99% for purchases, and 29.99% for cash advances. I’m happy to say that I had cancelled this card during a recent ‘personal housekeeping’, but I was offended none the less.

Ahead of credit reform, banks are changing the rules on us….and by us I mean small business people as well. David Lazarus in the LA Times writes especially eloquently about the shenanigans going on and seriously impacting the economic recovery.

I was a strong supporter of the recent financial bailout and I still see the merits in doing so. Unfortunately, many of the financial institutions have taken my, our, money and returned to business as usual instead of opening the lending faucet as asked. Small business, really all business, is getting screwed. Again.

I have been happy with my local bank for many years, but they were just bought by a larger regional bank. I already see some of the changes coming, including the separation of some of the key managers that I have a relationship with. New fees will be coming soon. Get big or get out. Just because I understand the concept doesn’t mean I have to like it.

I don’t have a solution. I think the banks won.