Credit Card Rate Increases Make Consumers Livid

With the economy suffering through a crippling credit crunch, credit card companies have raised their rates substantially for thousands of customers. Credit card customers around the nation are being notified by their credit card companies that their rates may double, increasing as much as 10 percentage points starting next month.

Citigroup has raised the rates on many credit cards
Citigroup has raised the rates on many credit cards

This is feuling much anger among consumers who are feeling the pinch from a credit-tight economy already. Many consumers are trying to fight the changes.

Citigroup has been the target of much of the anger, as it is both a major issuer of credit cards and a recipient of $20 billion in the taxpayer funded bank bailout in October.

Citigroup claims it is only jacking up rates for a subset of their customers, but would not say how many would receive the increases. The company says it is necessary because of the difficult credit and funding environment.

Card holders with Citi Group can opt out of the fee increases and stay with their current fees, but they must close their account when their card expires. Those with cards that expire in at least 2-3 years may want to consider the option because it allows them to whether the current financial crisis and get a new card when the market is potentially better.

There are several remedies in the works to stop rate jacking by credit card companies. A bill introduced in the House of Representatives that set regulations for rate increases passed in September but has been stalled in the Senate and the financial industry is lobbying to block the legislation from passing there. The Federal Reserve is also working on new credit card rules, though any changes would likely not take effect until 2010.

In Case You Missed It: Shoeboxed November Newsletter

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Over the last month we’ve been busy upgrading the Shoeboxed web application, adding new features and preparing for the upcoming tax season.
We’ve had a ton of new users since the last newsletter, so we wanted to say “welcome” to all the new Shoeboxed users out there. This version of the newsletter is a review of things to look out for on the site now, and for things to come!If you don’t have a Receipt Mail-In account yet, you can sign up here. If you are looking to upgrade your Receipt Mail-In account to a higher plan or to an annual subscription, give us a call at (888) 369-4269. And now, on to the newsletter!

Shoeboxed for Business Cards!

Now you can add business cards into the same envelope as your receipts. They will be scanned into a separate part of your account and all the relevant data will be entered for you.  Get that pile of business cards online, and export contact information to your email client or smart phone (and many other applications).
Business cards are only supported through our Mail-In program. To upgrade your account to include Mail-In, click here.

Sort Receipts By Credit Card
You can now break down your spending by payment type: cash, check, credit and debit cards, and wire transfers. You’ll be able to break your spending down by credit card as well, so you can get reconcile credit card statements and track business vs. personal expenses.
Shoeboxed only stores the last four digits of the credit card information on your receipt, and you can edit your credit card information in your Account & Settings page.

Get Prepped for Tax Season

April 15 is just a few months away. Make sure you’re in the know about new IRS policies and keeping your receipts organized in thew ways that the IRS requires. To help you keep up to date with the latest from the IRS, we’ll be publishing Tax Tips on our blog. There will be several each week, some written by the IRS, and some written by our experts in-house.
To read these Tax Tips, check out blog frequently or subscribe to our RSS feed.

Thanks for reading the Shoeboxed November Newsletter. If you have any feedback or suggestions for future newsletters, please let us know!
We hope you are well and staying organized,
The Shoeboxed Team

Receipts Fight Crime!

If you read this blog regularly, you know that I get a kick out of news stories involving receipts, especially if receipts are somehow involved in fighting crime. I came across a story a few days ago online where a woman was arrested because a receipt proved her guilt in a credit card scam.

Basically, a woman tried to use a credit card to buy $630 worth of gift cards. First of all, who buys $630 worth of gift cards at one time? But what was more surprising is that she had replaced the magnetic strip on the back of the card with one from another card. So when the limited information printed on the receipt about the credit card didn’t match up with the card, the cashier got suspicious.

The Federal Trade Commission only allows retailers to print the type of credit card and no more than 5 digits of your credit card number. It basically impossible for anyone to track that number back to any individual person. But it is enough to get you in trouble if you are using a Discover card with a magnetic strip from Visa.

Never forget: receipts run the world.