Citi Jacks Card Rates in Face of Reform

Citigroup (C Quote) sharply increased the interest rates on as many as 15 million credit cards, a move that could spark political backlash as legislators attempt to curb consumer lending abuses, especially at banks that received bailout funds.

Citi has raised its credit card rates on between 13 million and 15 million co-branded credit cards, the Financial Times reported Wednesday, citing people close to the situation.

Holders of co-branded cards who failed to pay their balance in full at the end of the month saw their rates rise by an average 24% -- or nearly 3 percentage points -- between January and April, the FT said, citing a Credit Suisse analysis. ...