Important Citibank question!

I had this experience with Citibank about 4 years ago. I missed two monthly payments about six months apart. They charged me late fees, but since I paid the double payments a little bit early, I was never actually 30 days late. So none of that ever showed up on the credit reports.

I had a few collections (utilities) along with a Citibank account that I was determined to keep current. They never raised my rate, EXCEPT for making late payments (every few months, usually a few days late.) I was at their penalty rate because of my tardy payment habits, but I didn't even know it until they notified me after 6 months of perfect payments that I would go back to the normal rate.

Anyway, collections on the credit reports (still there) didn't keep me from going back to the normal APR.
There MAY have been a policy change since then, with the usual boilerplate about "your payments to other creditors," but I'm not totally sure.

I can honestly say that keeping up the payments on my Citibank account when everything else was falling apart 6 years ago was one of the best decisions of my life. They were very tolerant of my collections and never punished me for them. When they had aged about three years, Citibank was one of the first to offer me more prime credit, including a 6.9% balance transfer.

 

Maybe I read too much into your question. I was thinking you may be late with Citibank too, when actually you didn't mention that.

But regardless, my collections didn't seem to make a bit of difference to Citibank. Maybe the policy has changed, or maybe credit card delinquncies are treated differently from utility collections, but I never had any problems with Citibank that weren't caused by my own late payments to them. (They did sit on one payment for 12 days, but that's another story.)

 

author,

Citi has a Credit protection program that cost a fee. They will make payments for you. That may be an option until you get on your feet.

Chitown

 

To answer your question, no Citi won't do anything to you at all just because you're late on other cards. In fact, I am pretty sure they won't even know. At least not until they pull your credit for like a CLI or something. Still, even then, they won't do anything to your card (except maybe not grant you a CLI or a APR reduction when you ask).

However, if you ARE ever late on Citi (I think it's 60 days) then they will put you into their high risk catagory and your APR will REALLY jump up there. That happened to us once a long long time ago with our Citi.

On another note: if I were in your situation again (and I was just 6 years ago) I'd do anything I could to make sure I made those minimum credit card payments. Even if I had to take cash advances to make the minimum for a few months or start mowing lawns for people on weekends or whatever I had to do to make a few extra $. Because it's really been a pain in the butt dealing the the consequences of not having paid on time years ago.

 

Hmmm. That's odd. I wonder if there are different types of Citi cards that react differently. Because we've had all sorts of credit issues, late payments, etc. over the years (none recently) and the only time Citi ever raised our APR is when we were late with them, about 6 years ago. Then, they lowered it again a year or two later because we had good payment history again.

 

Once you are 61 days late, they will call you and offer you the hardship program which lowers your APR and monthly payment. I got my call on the 61st day. But they will report it and it will screw up your FICO.

 

Citibank raised my interest rate as well, I can't remember if I was late with them or just some others. But, as others have pointed out, they will lower it when your situation improves.

I would recommend that you try to keep the Citi card. Since my situation has improved, they have lowered my interest rates and increased my credit limit. I now have balance transfers at 6.9% on Citi and 3.9% on AT&T Universal. On the Universal card, they cut my credit limit due to my credit situation, and raised the rate. But they kept the account open, more than some others did. Now I'm way above where the CL was originally.

 

My experience with Citi Bank:

I had a credit card with Citibank (I asked them to close the account just recently because of this situation) which still has a balance.

I received my statment for February. I noticed the interest rate had been increased to a whopping 24.240%. I looked closer and found that they had included this message (normally where they advertise):

"The Annual Percentage Rate on your account has been increased due to one of the following reasons stated in your Card Agreement with us: you failed to make a payment to us or any other creditor when due, you exceeded your credit line or you made a payment to us that was not honored by your bank."

Since none of the above was true, I called them. They stated because of something on your credit report, the rate had gone up. She also told me I could not ask for a rate reduction on my account for 6 months. Needless to say, I wasn't happy with the idiots, and that is putting it mildly.

So, I ordered a copy of my credit reports, and to my surprise a collection account had been placed on it. I immediately disputed it, since it wasn't mine. Credit Bureau said it was verified (yea, sure, it shows as disputed). Now, I'm disputing with the collection agency and asking for validation. (still ongoing)

After reading the FCRA, this is my conclusion. (and I welcome all opinions on this) The section is:

§ 615. Requirements on users of consumer reports [15 U.S.C. § 1681m]

(a) Duties of users taking adverse actions on the basis of information contained in consumer reports. If any person takes any adverse action with respect to any consumer that is based in whole or in part on any information contained in a consumer report, the person shall

(1) provide oral, written, or electronic notice of the adverse action to the consumer;

(2) provide to the consumer orally, in writing, or electronically

(A) the name, address, and telephone number of the consumer reporting agency (including a toll-free telephone number established by the agency if the agency compiles and maintains files on consumers on a nationwide basis) that furnished the report to the person; and

(B) a statement that the consumer reporting agency did not make the decision to take the adverse action and is unable to provide the consumer the specific reasons why the adverse action was taken; and

(3) provide to the consumer an oral, written, or electronic notice of the consumer's right

(A) to obtain, under section 612 [§ 1681j], a free copy of a consumer report on the consumer from the consumer reporting agency referred to in paragraph (2), which notice shall include an indication of the 60-day period under that section for obtaining such a copy; and

(B) to dispute, under section 611 [§ 1681i], with a consumer reporting agency the accuracy or completeness of any information in a consumer report furnished by the agency.

According to this, Citibank has violated the act. They did not tell me which CR they used (it's not on all of them)
They did not provide me notice of my rights and took adverse action.

Now, they did this to me back in 9/2001, but when I called them then, they said they would give me 3 months to get it corrected, which in fact I did, because the adverse information was inaccurate and it was deleted from my report. Although, again, at that time, they did not tell me which CR they had used, nor did they provide me notice of my rights.

I believe they are in violation, but I'm not sure as to the amount of damages I can claim or the amount I can sue them for. Anyone have an opinion on this?

I'm also quite angry at the fact that I have never once been late with them, nor anyone else. They have pulled my credit report almost every month, for the sole purpose of looking for anything adverse on it so they can raise my interest rate. Citibank's tactics or business practices STINK.

There is also a website where people can file a complaint to join a group of people seeking a class action lawsuit against Citibank, if anyone is interested: http://www.bigclassaction.com/financial.html

On another note, I sent a validation letter to the CA and they sent me 3 copies of statements, which have an address for me, that I have never had. I don't believe this is "validation" and I'd like to know what letter I should send next. (The collection amount is $255.00 and the collection agency is Anderson Financial Network, Inc.)

Anyone have any suggestions or opinions as to how I should proceed, or what I should do next? I haven't sent them a letter in reference to the violations yet, but I am going to as soon as I know I'm proceeding correctly.

Thanks.

 

Re: Re: Important Citibank question!

Hi,

Citibank has recently amended all the card member terms and conditions to include an arbitration provision, which specifically limits the existing citibank card users in joining any class action lawsuits. This was done about last year ... since you said in your post that you closed the card in 2001, you may not be aware of it.

If anyone had used their Citibank card after Aug 2002, they are subject to the arbitration provision.

-- lakpr

 

Re: Re: Important Citibank question!

I would like to know what Citibank usually does in this situation. Will they close my account even though Citi's is current? Will they jack my interest? Am I going to be blacklisted for all this? Should I close the account to save my future with Citi?
author_22
===================
Could be any of these.The END ****************** LB 59

 

Re: Re: Important Citibank question!

There MAY have been a policy change since then, with the usual boilerplate about "your payments to other creditors," but I'm not totally sure.

RichGuy
=========
Where have you defaulted on the loan?

The END ************************* LB 59

 

Re: Re: Important Citibank question!

Unfortunately, Citibank raised my APR several times since I originally posted:

1) Early Feb.: 8.2%, jacked to 19.9% due to a late People's payment.
2) Mid Feb: Jacked to 24.24% due to late Household payment.
3) Early March: Now 29.9% due to "unacceptable credit usage."
author_22
==============
1-2*So What - How was that a default of not paying on the loan?
3*what did you do wrong that caused this?


The END ************************* LB 59

 

On another note, I sent a validation letter to the CA and they sent me 3 copies of statements, which have an address for me, that I have never had. I don't believe this is "validation" and I'd like to know what letter I should send next. (The collection amount is $255.00 and the collection agency is Anderson Financial Network, Inc.)
ikya
===========Estoppel 30 days after they got your letter .

The END ************************* LB 59

 

Re: Re: Important Citibank question!

They have pulled my credit report almost every month, for the sole purpose of looking for anything adverse on it so they can raise my interest rate.
RichGuy
=============That's the fico plan.
The END ************************* LB 59

 

Re: Re: Important Citibank question!

1*you failed to make a payment to us or any other creditor when due

2* you made a payment to us that was not honored by your bank."
ikya
==================
1*Says Who-Prove it.
2*So collect it from the bank.
What about somebody elses bank?
Does this include check copies and forgeries?




The END ************************* LB 59

 

Re: Re: Important Citibank question!

1*you failed to make a payment to us or any other creditor when due

2* you made a payment to us that was not honored by your bank."
ikya
==================
1*Says Who-Prove it.
2*So collect it from the bank.
What about somebody else's bank?
Does this include check copies and forgeries?



The END ************************* LB 59

 

Re: Re: Important Citibank question!

You gotta be kidding - there IS no such thing.