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Old May 10, 02, 12:20 am   #1
 
Join Date: May 2002
Location: Anaheim Hills, CA, USA
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Citibank card holder BEWARE, "over the credit limit fee"

I was in Europe last month and my wife bought some jewelries and charged it on my Citibank Sony Card. When I received the statement, there was an extra charge OF $29 and it is called "OVER THE CREDIT LIMIT FEE"
My limit is $5000 and they allow my wife to charge $6000 and they are charging me for their mistake! They could have decline the charge and I would use my other Visa card or American Express instead.
My other credit cards would not approve of a charge when it exceed my limit, why didn't Citibank do the same?
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Old May 10, 02, 1:37 am   #2
 
 
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I don't think you will find too many people that will disagree with you about that particular fee being one of the worst fees that a credit card issuer can charge, since it's usually their own system that allowed the charge in the first place.

I think you may find, however, that Citibank is not the only one doing it.

Have you tried asking them to remove the fee? They won't admit fault, but they may agree to remove the fee in the interest of keeping you as a happy customer.

-David

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Old May 10, 02, 3:30 am   #3
 
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Many transactions are processed offline. It's impossible for banks to prevent cards going at least slightly over limit in those cases.

Quite a number of organisations (eg. rental cars and hotel rooms) put a pseudo-transaction in for an inflated amount of money when you present your card to them but only charge the real total to your card when you finish using their service. It would cause enormous inconvenience to users if banks didn't allow users to apparently go overlimit in those cases, since the amount to appear on the statement may in fact not be enough to go over the limit.

In the end, it's up to you to know when you're getting close to it. That said, the banks simply stand to get more money from you if you do exceed the limit, so the fees they put on this are purely a rip-off, just like cash advance fees.
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Old May 10, 02, 6:21 am   #4
 
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angrycardholder: I'm pretty much sick of Citibank myself. My sympathies are with you. Good luck with CB
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Old May 10, 02, 8:14 am   #5
 
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My wife went $25 over her credit limit, triggering a $29 charge (this was with FUSB). I called and asked that the charge be removed. When they declined I ever so politely asked that the account be closed. It took them all of about 30 seconds to decide to remove the charge.

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[This message has been edited by danville 1K (edited 05-10-2002).]
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Old May 10, 02, 1:19 pm   #6
 
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Is Sony now a mileage program? I'm missing the FT connection here.
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Old May 10, 02, 1:23 pm   #7
 
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It is people like you that are what is wrong with this country. You won't take responsibility for your own actions then you blame others for YOUR mistakes.

Did it occur to you or your wife to determine what your balance was BEFORE charging the expensive jewlery?

Citibank did NOT make a mistake, you charged over your limit.

Also, they have a phone number on the back of the card if you wanted to call collect and you could have raised your limit immediately.
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Old May 10, 02, 7:38 pm   #8
 
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Quote:
<font face="Verdana, Arial, Helvetica, sans-serif" size="2">Originally posted by Smart Person:
It is people like you that are what is wrong with this country. You won't take responsibility for your own actions then you blame others for YOUR mistakes.

Did it occur to you or your wife to determine what your balance was BEFORE charging the expensive jewlery?

Citibank did NOT make a mistake, you charged over your limit.

Also, they have a phone number on the back of the card if you wanted to call collect and you could have raised your limit immediately.
</font>
Are you kidding? My wife is single handedly trying to keep the economy afloat You seem to have forgotten that President Bush feels that our patriotic duty is to shop till we drop. She was just trying to be a good citizen and got dinged by FUSB for doing so

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Old May 10, 02, 10:47 pm   #9
 
Join Date: May 2002
Location: Anaheim Hills, CA, USA
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My credit limit is $5,000 and my wife bought a ring for around $5,900, it is not only slightly over the limit. Since I have so many cards, it is hard for me to keep track of the limit to each card. Other cards I have will decline the charge and won't let me charge over my limit, Citibank let me charge over my limit on purpose so thay can charge me $29!
I asked them nicely and see if they can remove the fee, otherwise I would close the account. It took him less than a second to agree that I should close my account! I am an ex-Citibank cardholder and will encourage my family and friends to close their account!
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Old May 11, 02, 5:30 am   #10
 
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I am going to close my acct next month too.
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Old May 11, 02, 6:25 am   #11
 
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Quote:
<font face="Verdana, Arial, Helvetica, sans-serif" size="2">Originally posted by Smart Person:
Also, they have a phone number on the back of the card if you wanted to call collect and you could have raised your limit immediately.</font>
I guess you do not have to call citibank to ask raise your limit, they would let you charge over your limit on purpose so they can earn that $29 fee from you!
To allow you to charge over your limit is just the way citibank use to rip their clients off!
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Old May 11, 02, 7:00 am   #12
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angrycardholder: Many c.c. companies will allow a certain amount of charges above your c.c. limit to go through. This is so as not to leave you stranded if you need the extra charge etc.. So this is not just a Citibank thing!

BTW, you are supposed to know your c.c. limit!

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Old May 11, 02, 8:57 am   #13
 
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ach & wfm:

If you don't mind collecting AA miles, Citi's World MC has no pre-set spending limit. That doesn't mean you can totally disregard the credit limit, but they will let you go over it a bit without dinging you for the fee. On one occassion where I was going over too far for Citi (and before I learned how to increase the limits - which I learned here on FT), they declined the charge - without hitting me with the OTCL fee. I've learned to call ahead of time if I need to go over the limit. In the past few months, I've been able to go ~$20K over - but I clear it with them first. I also pay the balance in full every month, which makes Citi more comfortable in letting me exceed my limit.

Also, it's been very easy to get my spending limit and credit limit raised, and unlike with Amex, I didn't have to wait six months to do it - you just send them proof of "ability to pay" - assets or income. If you do go with this card, know that there's a big difference between the spending limit and credit limit. Citi can adjust your spending limit up or down without telling you. And the people that grant spending limit increases don't talk to the credit limit people. Go for a credit increase first, then work on increasing your spending limit on top of that - if you need the room.
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Old May 11, 02, 10:48 am   #14
 
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angrycardholder: Your wife bought a $5900 ring on your card with a $5000 credit line ... and you blame the bank for going over the limit! You went 20% over the limit, not just a few dollars. Sorry, no sympathy here.

On the flip side, I would have been angry if I were a thousand miles away from home and my credit card transaction were denied. If that were my only card, I may have been in trouble.

(Edited to add comment I planned to send via e-mail, but no e-mail is on your profile):There are several posts on FT about how Citibank will try hard to keep good customers. If the bank let you cancel your card without trying to save your business, they probably thought you were not a good customer or a bad credit risk.

If you have as many cards as you mention, you should take a serious look at how much debt and credit you have outstanding.

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[This message has been edited by ontheroad (edited 05-11-2002).]
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Old May 11, 02, 12:52 pm   #15
 
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I have been a Citicard holder since 1994. I've never had a problem with them. I understand your frustrated with the fee but don't think it justifies spreading ill will against them. I'm sure if you wrote a nice letter to "S. Larson" they would review your account. Just my 2 cents
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