Ticked off by CitiBank...

[Uncle Cracker]

I have had a CitiBank Visa card for many years, although I have relegated it to emergency-only usage, since they continuously lowered the limit (despite my good credit) and raised the interest rate, making it my poorest option for regular use. I have not carried any balance at all on the account for several months.

Earlier this week, as I was doing my monthly cruising online through my accounts, an offer popped up on their website to increase my credit line instantly, without any notation in my credit files. Seemed to me like they were attempting to reverse some of the crunching they had done to me in the past, so I accepted the increase in headroom.

The very next day I found a letter in my P.O. box stating that, because I hadn't been using my card, they were closing my account. Now, why would they offer an increase to my limit if they were closing my account? And why would they not make some kind of conciliatory attempt to keep the account open and possibly stimulate my business? After all, people who pay their bills are much rarer in the financial industry these days...

Cutting to the chase, I called their customer service and inquired as to their thinking, and was told "It's just our policy...". "However..." the guy says, "if you will make a purchase with the card prior to the closure date later this month, we will keep the account open...".

Instead, I offered them numerous options as to where they could stuff their friggin' card. The last thing I'm gonna do is put my business with some strong-arm shyster who thinks that intimidation is the way to get business from good people. I also instructed them to close the account now, and warned that I would be watching to see how it was noted in my credit file, and to expect quick legal activity if anything derogatory was entered.

I'll be pissed about this for days.

[crokett]

The very next day I found a letter in my P.O. box stating that, because I hadn't been using my card, they were closing my account. Now, why would they offer an increase to my limit if they were closing my account? And why would they not make some kind of conciliatory attempt to keep the account open and possibly stimulate my business? After all, people who pay their bills are much rarer in the financial industry these days...

It costs them money to keep your account open and you not use it. They aren't making any money from you. However if you use it (even if you pay it off every month)

a) there is a chance that one month you won't pay the entire balance so they can charge interest (or they can quietly move the date up a few days and get you with a late fee)
b) they get transaction fees when you use the card


It seems odd that your rate would go up and the balance would be lowered.

[Uncle Cracker]

It seems odd that your rate would go up and the balance would be lowered.

Not the balance, but the limit... I don't see how I am costing them money... I'm just a number in their computer. They don't even have to spend money on postage. One thing is for sure, they definitely won't make any money from people whose accounts they cancel, and the loss of good will (such as my never doing business with CitiCorp in the future out of sheer principle) could cost them dearly.

[Ed62]

Can't blame you for being POd. I've seen other business decisions that I had to question.

Ed

[crokett]

Not the balance, but the limit... I don't see how I am costing them money... I'm just a number in their computer. They don't even have to spend money on postage. One thing is for sure, they definitely won't make any money from people whose accounts they cancel, and the loss of good will (such as my never doing business with CitiCorp in the future out of sheer principle) could cost them dearly.

Sorry, I meant the limit. It costs them a few cents to keep you in the computer, to mail you offers that you never take and to mail you statements showing you have a 0 balance (assuming they do that). My wife has a card were she gets 0 balance statements every month as do I for my corporate card.

[Stytooner]

Mine are Cap one. They usually increase the spending limit on all mine in an effort to get me to buy something I might not be able to pay off in one month. I rarely carry a balance. I haven't heard of them lowering the limit though. Not ever really. That seems like they would be shooting themselves in the foot that way.
Apparently, that's what they were doing in your case, because they did loose your business.

[Uncle Cracker]

It costs them a few cents to keep you in the computer, to mail you offers that you never take and to mail you statements showing you have a 0 balance (assuming they do that).

They mail me nothing. Even my statements come on-line, and they don't even send those when I have a zero balance. The thing that bugs me the most is that all the ill will could have been avoided if someone had just taken an intermediate step of sending me a letter saying "We notice you haven't been using us in a while. Is there some problem we might be able to help you with?" But no, it's right out of the gate with "We're not making money off you, so you're history...". I just can't get my head around it...

[cabinetman]

Not the balance, but the limit... I don't see how I am costing them money... I'm just a number in their computer. They don't even have to spend money on postage. One thing is for sure, they definitely won't make any money from people whose accounts they cancel, and the loss of good will (such as my never doing business with CitiCorp in the future out of sheer principle) could cost them dearly.

I have a buddy whose dog gets credit cards in "Fido's" name. The dog doesn't charge anything, and they raised his limit.

Considering what they did to you, must give you a feeling of total insignificance. What the heck will you do when all the credit merging finally takes place, and CitiCorp is the last one standing?
.

[Uncle Cracker]

What the heck will you do when all the credit merging finally takes place, and CitiCorp is the last one standing?

With their policies, I'd like to think they won't be the last one...

[ssmith1627]

We still have a choice if there's only one left. Not to use them.

These credit card companies are all the same and all vultures.

Steve

[sweensdv]

Maybe you should check into getting a card from one of the banks in China. They seem to love our dollars.

[ragswl4]

The bottom line is that none (at least most) don't care about you or me as a person or customer. They have millions so losing one doesn't bother them one bit. It is just the way it is in this new world we live in. Try not to get upset because then they win and you get hypertension then you have to try to deal with the health care system then you get more hypertension. See where this going...............

If you are not retired, do so as soon as possible and move to the mountains and leave it all behind, especially the hucksters. These are the same fat cats that caused the credit crisis that we all now suffer from. THEY ABSOLUTELY DON'T CARE!

[Tom Slick]

I once had a citibank card. I signed up for paperless statements. something got messed up early on and I didn't receive statements, paper or paperless, for about 6 months and I didn't notice. I had a balance of $15 before this paperless fiasco, they service charged about $60 then sent my a paper letter stating that my account was overdue. I called them, figured out the situation, got them to drop the finance charges and promptly canceled the card.
They knew I wasn't making payments but didn't send me a paper notice until they they could make some money on it.

[Uncle Cracker]

Yeah, I know I'm only one guy, but if they treat me this way, I'll bet there are many others who, like me, carry grudges for a loooong time... It's gotta add up.

[Tarhead]

Lots of Wachovia bank employees feel a little better today. Looks like they'll belong to Wells Fargo now instead of Citibank.
http://www.charlotteobserver.com/112/story/243386.html