Banks are not perfect. Citigroup is one of the banks that has overcharged people interest. It is estimated that 1.75 million people were overcharged interest.
Fortunately, Citigroup managed to catch and correct this error. They paid people $335 million to compensate them for this error. The average person received a check of $190. However, many people who are overcharged credit card interest never receive compensation.
Customers have to do their part to make sure that the interest rates are fair. You will need to keep a close eye on your interest rate. You can find your annual percentage rate on your credit card statement. If you have noticed that the number has increased drastically without much explanation, then you will need to get in touch with your credit card provider.
Some credit card companies will automatically increase your payment if you pay your bill late. However, the interest rate does not have to stay high. You may be able to get your interest rate reduced after you have consistently paid the bill on time for six months. Ask the credit card company about this.
You can also ask the credit card company if you can get the interest rate reduced. You may be able to negotiate with them. If you feel like you are not being charged fair interest, then you will need to close your account. You are free to close your account even if you have a balance on the card. The only drawback to this is that you will not be able to use the card anymore.
Furthermore, you will need to avoid carrying a balance. This is the best thing that you can do to avoid being charged more interest than you have to. Unless your money is really tight, you should pay the card off every month.