Released: June 25, 2008

Citi may repeal change-of-terms pledge

Source: Eric Dash, New York Times (Free Registration)

Last year Citigroup made a promise to millions of people who flex its credit cards: “A deal is a deal.” The slogan was used to trumpet an announcement that the financial giant would no longer reserve the right to raise interest rates on cards at any time, for any reason.

But Citigroup’s deal is only a deal until it isn’t. The company is quietly reconsidering its pledge as it confronts a host of financial troubles, according to Citigroup executives. A decision could come this week. Samuel Wang, a spokesman for Citigroup, declined to comment.

Several Citigroup executives emphasized the “deal is a deal” slogan before members of Congress and to consumer groups. The pledge helped Citigroup fend off greater regulation of the card industry and distinguished the company as an industry leader.

Read Full Article: Citi may repeal change-of-terms pledge