Go Back  FlyerTalk Forums > Miles&Points > Credit, Debit and Prepaid Card Programs > Citi | ThankYou Rewards
Reload this Page >

Citi cards closed, TYP confiscated, reasons not disclosed.

Citi cards closed, TYP confiscated, reasons not disclosed.

Old May 28, 13, 3:42 pm
  #811  
FlyerTalk Evangelist
 
Join Date: Mar 2000
Posts: 16,219
Originally Posted by silver6054 View Post
The belief is that once it goes to a third party (airlines, giftcards) it is harder for Citi to undo, whereas putting a stop payment on a check they issued is easier.

Also, given the craziness of the process, it might be that MM isn't in their sights at all. Yet, at any rate.
Citi has shown themselves to be amazing inept over the years, but if I were a betting man, I'd lay long odds on MM surviving with his Citi accounts.

And, of course, that's the problem with his strategy. He is likely to lose everything he spends on manufacturing spending this month. It's not a huge expense, but it's real money -- and real time.

Now he may believe he can sue Citi for it, and perhaps that will work, but most folks might conclude that it's not worth the time/hassle/risk.
iahphx is offline  
Old May 28, 13, 4:06 pm
  #812  
 
Join Date: Jan 2013
Location: LAX, SNA
Posts: 359
Originally Posted by dw View Post
Word is this will be the new earning structure for TY Preferred cards as of late July, so it's not a promo.
Where did you hear that? For those with active accounts, I guess we should view this as a positive. Maybe they will stop the witch hunt then.
dogbyte is offline  
Old May 28, 13, 4:24 pm
  #813  
 
Join Date: Nov 2012
Location: NYC
Posts: 398
Originally Posted by Marathon Man View Post
sooooo... tell me... how do you know I, not paying contractors with my GCs, etc? It is widely known by other flyer talkers and friends alike that I have been working on my house for some time now. I bought tons of Home Depot GCs with the UA MOM promo, and have been rebuilding my place since we bought it in 2005.

So dont go calling my reasons silly without knowing the facts mate. That would be silly in itself.

Again, courts are there to determine what is best or what is right or wrong on a case by case basis. Let them do it. If you are here to play devils advocate, that's one thing--if so, then please make that clear, but to be frank, I think you almost sound more against certain people's actions or words than to be here for the collective good of the people in this thread.

citi is, in the opinions of me and others here, trying to duck out of something they created because the now realize they could not control it. They designed it poorly, they marketed it poorly and they implemented it poorly. Even those who never bought a GC or VR are being swathed into the mix of supposed evil doers and taken down regardless of their balances or TY activity. It is as if this company or some part of it run by inept personnel has decided to just end something without recourse and could care less about anything except its own interests. Is that what each of us are doing too in a way? I dunno... THEY offered US the CC. Not the other way around. I'm not claiming innocence... I bought many things on my card JUST to earn points... but that my friend Is the point of these things. What, you dont want to earn points on things? Would you open a bank account that earns interest or cash back rewards , for example, over one that does not if they both were available to you?

I'm sick of trying to justify it to people who cannot see. If you cannot see, don't look.
true dat
AscorbylPalmitate is offline  
Old May 28, 13, 4:28 pm
  #814  
FlyerTalk Evangelist
 
Join Date: Nov 2002
Location: BOS, MHT
Programs: AA ltg, B6, DL, UA, AS, SPG/Marriott Plt, HH, Hyatt
Posts: 10,038
Originally Posted by stupidzbu View Post
are you sure they can't cancel this like the stop payment on the checks?
I wondered that, but had learned that these airline tickets are in fact ticketed and AA, upon my calling them later, gave me its own record locator number for what it considered PAID tickets (ie, not award tickets, but like cash).

I suppose if something does get stopped, I at least have time to deal with it since my trip is in April 2014.

Last edited by Marathon Man; May 28, 13 at 6:58 pm
Marathon Man is offline  
Old May 28, 13, 4:32 pm
  #815  
 
Join Date: Apr 2012
Programs: 24 million points to burn!
Posts: 1,509
I got the new earning structure mailing too. Looks like we have till July 28 to still get 5X. At least this is more like Amex, which at least gives a heads up to the new earning structure. Looks like it will be a spending spree for the next 2 months!
Preacher7 is offline  
Old May 28, 13, 4:34 pm
  #816  
FlyerTalk Evangelist
 
Join Date: Nov 2002
Location: BOS, MHT
Programs: AA ltg, B6, DL, UA, AS, SPG/Marriott Plt, HH, Hyatt
Posts: 10,038
Originally Posted by iahphx View Post
Citi has shown themselves to be amazing inept over the years, but if I were a betting man, I'd lay long odds on MM surviving with his Citi accounts.

And, of course, that's the problem with his strategy. He is likely to lose everything he spends on manufacturing spending this month. It's not a huge expense, but it's real money -- and real time.

Now he may believe he can sue Citi for it, and perhaps that will work, but most folks might conclude that it's not worth the time/hassle/risk.
You are correct--and you must know me well hehe. I do plan to hit the same numbers for June and maybe go a bit higher (then again I could see myself easily doubling it because that's what MMs do!)... we shall see if I live til June 28 and earn more points, or if they eventually nab me too. If so, however, I think I have more than "been paid" for my time and fees of things I manufactured. A trip for 4 to GCM and some GCs for stores we shop at aint bad for now!

Of course, I say this now... so I will try to remember I've just said all this tho lol
Marathon Man is offline  
Old May 28, 13, 4:39 pm
  #817  
Suspended
 
Join Date: Dec 2006
Location: USA
Programs: All major programs
Posts: 1,403
Originally Posted by Marathon Man View Post
You are correct--and you must know me well hehe. I do plan to hit the same numbers for June and maybe go a bit higher (then again I could see myself easily doubling it because that's what MMs do!)... we shall see if I live til June 28 and earn more points, or if they eventually nab me too. If so, however, I think I have more than "been paid" for my time and fees of things I manufactured. A trip for 4 to GCM and some GCs for stores we shop at aint bad for now!

Of course, I say this now... so I will try to remember I've just said all this tho lol
I like your style. Live free or die! LOL!
gv111 is offline  
Old May 28, 13, 5:16 pm
  #818  
 
Join Date: Apr 2009
Location: 787
Programs: Too many to list
Posts: 1,278
Originally Posted by bdumb View Post
I applied, got approved and received the Citi 5x Preferred card through the link posted on the Frequent Miler's site awhile back...everything has been going smoothly, 5x on $5-6,000/month, successful point reduction via GCs. Today I received a promo letter detailing 2x TYP on dining, entertaining and 1x on everything else effective late July...this is after receiving another promo about a month back giving 5x on 5 different categories with a ceiling of 2500 TYP and expiring end of June. I'm not really sure what to make of these changes nor why I've chosen to share this in my inaugural post.
Got this today as well. This wasn't for x5 card but regular one point per dollar TY Preferred card which I got last year when they had 50K promo. So Im guessing thats new structure for TY points cards. I was going to see if they still had x5 card at the branch but my guess is its also going to be x2 come July.
ThePointsCollector is offline  
Old May 28, 13, 5:17 pm
  #819  
Original Poster
 
Join Date: May 2008
Programs: AA GLD 1.9MM, HH DMD
Posts: 2,014
Originally Posted by iahphx View Post
Citi has shown themselves to be amazing inept over the years, but if I were a betting man, I'd lay long odds on MM surviving with his Citi accounts.

And, of course, that's the problem with his strategy. He is likely to lose everything he spends on manufacturing spending this month. It's not a huge expense, but it's real money -- and real time.

Now he may believe he can sue Citi for it, and perhaps that will work, but most folks might conclude that it's not worth the time/hassle/risk.
He could always take the next 3 weeks off then push through all that spend in the 4th week, just before the statement closes... if he's still in business at that time.
thehawk75 is offline  
Old May 28, 13, 5:19 pm
  #820  
 
Join Date: Jul 2011
Posts: 67
Originally Posted by iahphx View Post
All my Citicards were shut down this weekend as well (I found out while on vacation trying to buy gas). At first I thought it might be a fraud alert, but then when the rep couldn't tell me the reason for the closure, I knew what happened. And then I came to see all the new shutdowns reported here.

Since getting the Preferred card earlier this year, I've probably averaged 15K in monthly spending; some for your typical gas and groceries and other routine purchases, and more at drugstores. I'd only spent a few thousand on my current cycle after seeing all the reports here, although I did drain my TY account in the past 2 weeks of almost $1000 in TY points with flights and gift cards. Not sure if that had anything to do with the shutdown, but I obviously wasn't going to leave the points there.

I'm not really sure what to do here. I'm pretty sure Citi won't just start listening to our complaints. I'm not sure if the Feds will. I actually don't mind very much that Citi shut down my Preferred card. I mean, that's a lousy thing to do, but it's within the realm. I don't think they have the right to confiscate my remaining TY points (under 30,000 worth), and I don't think it's right for them to shut down all my other Citi credit cards. That might hurt my overall credit rating, and do material harm to me.

It would be helpful if everyone keeps updating us on their situations, and what government responses they've received.
I had all 3 of my cards closed recently. The frustrating part is that a day before the statement closed, I called into them to ask about why I couldn't access my rewards site. The gentleman on the phone said it's temporary and that my account was under review, but that I don't need to worry about my points being missing. I confirmed this with him and specifically said that I don't need to think about losing my points, and he confirmed this. A day or two later, my statement closed, and my card stopped working. My rewards account is closed and doesn't show up at all when I login now as well.

I'm not one to push my luck, though he did tell me that my points were secure.

I'm not sure what to do - I only had maybe 30k of points remaining, so it's not worth any kind of serious thought as an individual.

If someone here knows how to take this further as a group or with federal regulators in some way, let me know, because I'd be glad to look at supporting it.
ankitgu is offline  
Old May 28, 13, 5:56 pm
  #821  
FlyerTalk Evangelist
 
Join Date: Jul 2003
Location: Florida
Posts: 28,040
Originally Posted by ankitgu View Post
I had all 3 of my cards closed recently. The frustrating part is that a day before the statement closed, I called into them to ask about why I couldn't access my rewards site.The gentleman on the phone said it's temporary and that my account was under review, but that I don't need to worry about my points being missing. I confirmed this with him and specifically said that I don't need to think about losing my points, and he confirmed this. A day or two later, my statement closed, and my card stopped working. My rewards account is closed and doesn't show up at all when I login now as well.

I'm not one to push my luck, though he did tell me that my points were secure.

I'm not sure what to do - I only had maybe 30k of points remaining, so it's not worth any kind of serious thought as an individual.

If someone here knows how to take this further as a group or with federal regulators in some way, let me know, because I'd be glad to look at supporting it.
Another blatant lie from Citi. They all know what that entails yet they all flat out lie to customers.

You can file your complaint at CFPB online. Upthread CVG_Kid has put together a list of government agencies you can go with your complaints. Read a couple pages back.
Happy is offline  
Old May 28, 13, 6:14 pm
  #822  
 
Join Date: Mar 2011
Location: FL
Programs: AAdvantage Elite Plat, HH Gold, SPG Gold, Hertz Gold, BA
Posts: 498
Originally Posted by Marathon Man View Post
they are doing this to get out of paying rewards they now find they cannot or do not want to pay. They need an out so they invoked one. They target anyone and everyone. I cannot know exactly how or why but I would imagine they cast a wide net and even brought in people that they should not have. Or they could have done that on purpose to throw someone off who is investigating their methods. Surely there will be many here who fall into that category.



A bank (like citi) can close your acct at any time. All banks can do that. It's part of the bank secrecy act of 1970. Most here do not like that but it is the rule. BUT... and we all know it... banks wont just close you out unless they have a reason. And one can usually figure out exactly what it is.

For example, if I was closed out of some midsized or local small bank for depositing what they think are 'too many' money orders, and they are simply unwilling nor able to float any risk associated with that kind of currency, then they could just close my account so I am no longer someone to worry about in that bank. The reason this may happen is that some associate money orders with ill activity. Also, the nature of that form of currency is such that it can sometimes take up to ten days to actually clear through and for the bank to be paid in full by the issuer. For this reason, the money order is a riskier form of currency in a way. The smaller banks may not like floating that risk if they made the funds available to you the next day or so. Did I break a law and will this affect me with Chex Systems just because my account was closed? No. But it is that business who makes that decision and they had their reason. They wont say it or send it in writing, but again, you can figure out what it is. They wont say it because, in that example, what they should have done is simply hold the funds from said money orders a bit longer so they cash through their systems. That way they float no risk on your money and then they wont mind your deposits and withdrawals of same. But they cant because other federal regulations force them to generally make such funds available in a certain amount of time. So the bank is forced into a corner where the only way out is to get rid of the customer who they see as putting them there. That's it.

Citi is in the same bind in a way. They offered TY points on this unlimited CC. We did the offer and took advantage (not a term always associated with doing something wrong by the way!) of the offers and amassed many points. More than they are prepared to give in the end. So they want to get rid of us--the financial burden. They are shutting people down from the bank side because they can without reason given... but the reason is because of their dislike of the fact we earned all those points they cant pay out on. AND when they shut you down from the bank, they can forfeit all your points! VERY convenient!!! A scam too, in my mind.



Well, for one, you are assuming (wrongly I might add) that the contractor is undocumented JUST because he accepts GCs. GCs are Visas. they run through a company's processor just like a Visa. I can hand him say 6 of these $500 Visas and let him take them back to his office where his accountant can run them through their CC processor on her time... AND since she is holding them in hand and able to swipe them on the spot, they get a lower rate than if I were to call in a CC and give her the numbers over the phone. It saves HIM money, but since I bought the GCs with my 5x CC, it MAKES me some money (in points). He takes checks but hey, if you get a contractor that takes a CC, go with him! (he does not take Amex by the way, and nor does my dentist, where I need 8 crowns but have only done 4 so far--at $1200 a pop and no coverage to pay for them, so they are for later).

The IRS can look into any of our books. They can see a payment was made and how. They can see where it came from. I can show I paid it. I can and would tell them where I got the GCs and why.

I have used them for this purpose and for other things. I have bought them for more reasons than just contractors but one must remove ones horse blinders and see the possibilities around ones otherwise sense of vision or else one will fall victim to the very thing one worries about.

As for me having to prove I gave the GCs to a contractor... I suppose I could leave him out of it by simply logging into the GC site and printing out records of who swiped it and for how much. If it says his business name on the transaction list, that should suffice.

finally, I take offense to the term "unusual". Instead, it could be better to use "creative" tyvm
Not sure why you were offended. That was not my intention. As you can see, my number of posts is very low and I am a new member, even though I registered a while back.

This is all new territory for me and I am trying to learn all the "tricks" and "creative" ways people use. For most people, paying with GC is odd and very unusual. If a contractor tells me he prefers gift cards, I would think it twice about using his service. Or like buying a TV with gift cards, that I know I lose some warranty protection.

I am going to ask a few questions to other members. I want to play the game too, but want to do this smartly. The fact that Citi closes accounts and ruins your credit options is kind of scary (not that I like Citi that much anyway). So y'all bear with me.
lacuadra is offline  
Old May 28, 13, 6:27 pm
  #823  
 
Join Date: May 2009
Programs: Airline Kettle, SPG, Club Carlson
Posts: 316
Originally Posted by swintec View Post
The terms that state if your account is closed for any reason, any TYP that are unredeemed will become unavailable and forfeited.

Dont get me wrong, for those who had checks stopped after redemption, I think there is a case to be made if one wants to pursue.
Not having looked over the full T&C (I am a Citi card holder but do not do manufactured spend), it isn't so clear they can do this even if it is in the T&C.

I'll try to explain this as "non-legally" as possible. Citi advertises TYP as something that is "earned." Unlike a gift, you usually have to do something to "earn" a benefit. Citi could have advertised TYP as such:

"We may gift you 5x TYP for drug store purchases at our discretion" (which is in fact what they are doing)

Instead, the benefit is advertised as: "Earn 5x TYP for drug store purchases"

Does the latter statement induce more spend than the former? I would think so, again because the idea of earning something makes it yours. So I'd say there is a case to be made when you are told you are earning something based on spending, when actually you are not.
DallasEsq is offline  
Old May 28, 13, 6:32 pm
  #824  
FlyerTalk Evangelist
 
Join Date: Nov 2002
Location: BOS, MHT
Programs: AA ltg, B6, DL, UA, AS, SPG/Marriott Plt, HH, Hyatt
Posts: 10,038
Originally Posted by gv111 View Post
I like your style. Live free or die! LOL!
indeed! although that is New Hampshire's Motto and I am from MA. lol

Originally Posted by Preacher7 View Post
I got the new earning structure mailing too. Looks like we have till July 28 to still get 5X. At least this is more like Amex, which at least gives a heads up to the new earning structure. Looks like it will be a spending spree for the next 2 months!
I did not yet get this notice. Is it one of those little gray pamphlets they mail out? If so, are you saying it affects the 5x Citi TY preferred card (like the one I just got) that people have been nabbed here for using excessively for the past several months? I guess if they have new TCs now capping the 5x world, that is actually a good thing, in that a limit has been set, meaning we can actually push right up to that limit and now have even more recourse to go and get it!

Originally Posted by thehawk75 View Post
He could always take the next 3 weeks off then push through all that spend in the 4th week, just before the statement closes... if he's still in business at that time.
I will be away most of July but can burn thru some serious spend in June and into the first week of July as well. I should be back home 6 days before my July statement cuts meaning I could also do some serious damage then as well lol

Originally Posted by lacuadra View Post
Not sure why you were offended. That was not my intention. As you can see, my number of posts is very low and I am a new member, even though I registered a while back.

This is all new territory for me and I am trying to learn all the "tricks" and "creative" ways people use. For most people, paying with GC is odd and very unusual. If a contractor tells me he prefers gift cards, I would think it twice about using his service. Or like buying a TV with gift cards, that I know I lose some warranty protection.

I am going to ask a few questions to other members. I want to play the game too, but want to do this smartly. The fact that Citi closes accounts and ruins your credit options is kind of scary (not that I like Citi that much anyway). So y'all bear with me.
Forgive me if I did not understand. No worry then. Welcome to this forum and thread too.

My contractors are people I know and have known for a long time. I know what you mean now but actually in my case I showed THEM this method. Some of them actually got into some points related things themselves because they use the same CCs to buy things they need for work. For example I taught one builder that he could use a XX earning CC to buy Lowes and HD gc at stores that give bonuses. He only buys certain stock there because those stores have limits for what the real pros use, but he does use them. This has made or saved him money, and thus has done the same for me.

Anyway feel free to ask away. Mostly the tricks or creative moves people use in FT and in things like Citi TY are to find ways to maximize spend and reduce cost. Buying and using GCs can accomplish this.
Marathon Man is offline  
Old May 28, 13, 8:06 pm
  #825  
jk2
 
Join Date: Dec 2010
Posts: 1,459
I didn't receive a new earning mailing as others, but last week I participated at Citi's survey about TYP cards. They showed possible different earning structures - mostly 2x on dining, travel, groceries plus some benefits as 4 "surprise" statement credits, and other stuff (do not remember exactly). For sure, no 5x category.
jk2 is offline  

Thread Tools
Search this Thread
Search Engine: