Checking account closed by Citi
#1
Original Poster
Join Date: Dec 2010
Posts: 1,516
Checking account closed by Citi
After returning from vacation, letters from Citibank was waiting for me and my wife. Citi informs that "following a recent review" they decided to close our checking accounts. That's quite strange, since I don't really use my checking account at all - no deposits, etc. I opened it last year for $400 promo, got a bonus, then downgraded it from CitiGold to regular basic account, left $1500 on it and that's all. Only activities I have is with Citi cards.
My wife opened her CitiGold in March for 40K TYP, met the requirements and that's all as well. She recently transferred $3K from this account to another checking account. Only other activities (MS) on citi cards.
I wonder what could trigger a closure and would it affect my credit cards. A letter was dated on June 18, and I was approved for another Citi card on June 26.
Did anyone else was closed by Citi?
My wife opened her CitiGold in March for 40K TYP, met the requirements and that's all as well. She recently transferred $3K from this account to another checking account. Only other activities (MS) on citi cards.
I wonder what could trigger a closure and would it affect my credit cards. A letter was dated on June 18, and I was approved for another Citi card on June 26.
Did anyone else was closed by Citi?
#3
Original Poster
Join Date: Dec 2010
Posts: 1,516
As a MS concerned, on my cards I just do bare minimum (meeting a spend for sign up bonus and $1K/month on my AA visa as part of retention bonus). I am a AU on all my wife's cards and do the same (minimum spend for sign up bonus) and also do a MS on her Preferred card where I have an offer of extra 2pts on all spending. Spend is about $8K on that card, a little bit over a CL though.
But if they don't like a MS they would close cards, not checking account, I assume.
#4
Join Date: Aug 2013
Posts: 240
Thanks for the data point, OP.
For others reading this, I recommend paying Citi cards out of Citi checking account. This way, you have some activity in the account.
I have always been concerned about some of my bank accounts where I don't have a lot of activity. I think that ideally, you want to have a direct deposit going in, even if it's just a very small amount and then pay a bill out of the account. It costs banks money to have an account that always has a very low balance. I would imagine that they ideally want to at least see some reasonable sized deposits, even if they do get bill paid out very quickly.
For others reading this, I recommend paying Citi cards out of Citi checking account. This way, you have some activity in the account.
I have always been concerned about some of my bank accounts where I don't have a lot of activity. I think that ideally, you want to have a direct deposit going in, even if it's just a very small amount and then pay a bill out of the account. It costs banks money to have an account that always has a very low balance. I would imagine that they ideally want to at least see some reasonable sized deposits, even if they do get bill paid out very quickly.
#5
Join Date: Nov 2007
Posts: 609
Just a data point on banking and checking accounts in general. Several years ago I received a letter from Chase saying that if I want keep the "dormant" smallish checking account there needs be some activity before XYZ date. As such I made a one time ACH transfer (of $100) from an external bank into Chase checking -- the bank (Chase) left my account open/active and it's was almost another 2 years before I had another activity on the account. I think it may depend on your history with the bank. Also, if you really need/want the account to remain open then follow the rules/policy. To me, account closure in OP's case sounded rational as there hasn't been any activity for a long time and he was new to the bank (for sign-on bonus) and didn't make typical checking activity thereafter.
Last edited by deltame; Jul 4, 2015 at 10:05 am
#6
Original Poster
Join Date: Dec 2010
Posts: 1,516
Thanks for the data point, OP.
For others reading this, I recommend paying Citi cards out of Citi checking account. This way, you have some activity in the account.
I have always been concerned about some of my bank accounts where I don't have a lot of activity. I think that ideally, you want to have a direct deposit going in, even if it's just a very small amount and then pay a bill out of the account. It costs banks money to have an account that always has a very low balance. I would imagine that they ideally want to at least see some reasonable sized deposits, even if they do get bill paid out very quickly.
For others reading this, I recommend paying Citi cards out of Citi checking account. This way, you have some activity in the account.
I have always been concerned about some of my bank accounts where I don't have a lot of activity. I think that ideally, you want to have a direct deposit going in, even if it's just a very small amount and then pay a bill out of the account. It costs banks money to have an account that always has a very low balance. I would imagine that they ideally want to at least see some reasonable sized deposits, even if they do get bill paid out very quickly.
My wife opened her account in March, deposited $10K, performed needed activities for bonus, and then (since a monthly fee is waived for 3 months), transferred funds to another bank as well.
I would appreciate if Citibank would inform us about consequences for keeping account as minimum. Anyway, it was just 3 months without any activity. Is it really too long for banks?
#7
Original Poster
Join Date: Dec 2010
Posts: 1,516
I decided to call Citi and they told me that according to their review I used my checking account like a "business account". Apparently, ACH from Citi to another checking account or writing a check is considered a business usage. What a BS!
#8
Original Poster
Join Date: Dec 2010
Posts: 1,516
I need an advice what to do now.
It seems that closure of checking account by Citi now gives me troubles with getting new credit cards from them. Two weeks after a checking was officially closed I applied for AA Platinum MC, that was approved, but when I tried to activate it, I got a message that this account was closed. After many calls and speaking with supervisors and writing mails to them, I finally got a mail from them where they say that a reason for credit card closure was:
The credit privileges on your existing Citibank account(s) are currently restricted.
What can be done now? Is it kind of blacklist? My current 6 Citicards are still open and OK, but there are too many good offers I don't want to miss. A checking account was obviously closed by wrong reasons (when I called a branch, their associate reviewed notes and claimed I used it as business account, while I didn't use it at all - but they weren't interested to change anything).
Is there a department which can help?
It seems that closure of checking account by Citi now gives me troubles with getting new credit cards from them. Two weeks after a checking was officially closed I applied for AA Platinum MC, that was approved, but when I tried to activate it, I got a message that this account was closed. After many calls and speaking with supervisors and writing mails to them, I finally got a mail from them where they say that a reason for credit card closure was:
The credit privileges on your existing Citibank account(s) are currently restricted.
What can be done now? Is it kind of blacklist? My current 6 Citicards are still open and OK, but there are too many good offers I don't want to miss. A checking account was obviously closed by wrong reasons (when I called a branch, their associate reviewed notes and claimed I used it as business account, while I didn't use it at all - but they weren't interested to change anything).
Is there a department which can help?
#10
Original Poster
Join Date: Dec 2010
Posts: 1,516
#11
Join Date: Oct 2015
Posts: 28
Please keep updating this thread with your Citi experience. I am in a nasty dispute with them over my checking plus account. Like you, the reasons Citi gave for their actions are completely not based in reality. I can't figure out if the agent I'm speaking to us just clueless and making stuff up or what is going on. I'm so close to being done with them.
#12
Join Date: Feb 2013
Location: some premium cabin...
Posts: 390
Please keep updating this thread with your Citi experience. I am in a nasty dispute with them over my checking plus account. Like you, the reasons Citi gave for their actions are completely not based in reality. I can't figure out if the agent I'm speaking to us just clueless and making stuff up or what is going on. I'm so close to being done with them.
#13
Original Poster
Join Date: Dec 2010
Posts: 1,516
Please keep updating this thread with your Citi experience. I am in a nasty dispute with them over my checking plus account. Like you, the reasons Citi gave for their actions are completely not based in reality. I can't figure out if the agent I'm speaking to us just clueless and making stuff up or what is going on. I'm so close to being done with them.
Keep in mind, that if Citi closes your checking, your credit cards will be on short term life support. If you have some thank you points available, use them soon.
#15
Join Date: Nov 2008
Location: Dallas, TX
Programs: AA EXP, Marriott LT Titanium, Avis Chairman
Posts: 1,286
I recently received a letter stating my account would be closed in mid-May. It was opened earlier this year with initial funding from a citi credit card. Since then I've had no further deposits, but have had a few withdrawls. Only semi-strange activity is when I completed bill pay to complete signup bonus reqs, I sent those to my wife.
I've gone into a branch (while I was on vacay in Vegas) and they were of little help. Called on the phone and they were of little help.
I don't have many TYP on the account, so I'm not worried about that. But I do fear this is the beginning of the end with my relationship with Citi -- it's a pity because I've been with them forever and I really, really like their offerings.
Anyone had something similar happen? If so, what were the long-term results? Are appeals possible?
I've gone into a branch (while I was on vacay in Vegas) and they were of little help. Called on the phone and they were of little help.
I don't have many TYP on the account, so I'm not worried about that. But I do fear this is the beginning of the end with my relationship with Citi -- it's a pity because I've been with them forever and I really, really like their offerings.
Anyone had something similar happen? If so, what were the long-term results? Are appeals possible?