Citibank has joined the list of top issuers currently making adjustments to cardholder agreements. During the March billing cycle, Citi raised its balance transfer fee cap, late fees, and cash advance interest rates. Also, Citi, like other major issuers, is raising its foreign currency transaction fee next month to 3% from 2% as VISA and MasterCard drop their 1% foreign currency conversion fee. Balance transfers will now cost 3% with a $5 minimum and $75 maximum, according to CardWatch ([www.cardwatch.com]). The late fee is now $15 for balances under $100, $29 for balances between $100 and $1000 and $39 for balances of $1,000 or more. The cash advance APR is now prime +14.99% with a 19.99% minimum. Citi also dropped JAMS as an arbitration option and modified its arbitration clause to read: “If any portion of the arbitration provision is deemed invalid or unenforceable, the entire arbitration process will not remain in force” (instead of “the remaining portions will remain in force”). Minimum payments will adjust to past due amount + over-limit amount + ($5, if the APR is over 19.99%) plus the greater of
1. the billed finance charges and any applicable late fee
2. the new balance if it is under $20
3. $20 of the balance is between $20 and $960
4. 2.08% of the balance is over $960. A $5 fee will be added if all of the APRs on the account are under 19.99% and if #1 is the largest.