Citi cards closed, TYP confiscated, reasons not disclosed.
May 29, 2013, 9:24 pm
#886
FlyerTalk Evangelist
Join Date: Jul 2003
Location: Florida
Posts: 29,762
Sorry, I was unclear on that.
3/18 My accounts were closed by citi [TYP disappearing w/in 2 days]
3/26 I filed my complaint with the CFPB [citi has 15 days to respond]
4/10 Citi requests a 60 day extension
4/22 Citi responds by citing T&C of credit card and T&C of TY
But my complaint was that the T&C are legally invalid and constitute enrichment by fraud -- not that I did not understand the T&C. So that's why I said non-response.
4/23 I informed the CFPB complaint system that I dispute the validity of citi's resposne
4/23 CFPB auto-responder explains that this is the end of what the CFPB can do.
In other words, CFPB is only valuable if they get a stack ton of complaints. Otherwise, there's no one looking at what is written and how it responds. Between now and then, I've been too busy to look further. My total cost in lost earned points is somewhere around $1200 to $1500 valuing TYP at 1 penny/point as their advertising does (or 1.33 pennies / point when I redeem from travel).
3/18 My accounts were closed by citi [TYP disappearing w/in 2 days]
3/26 I filed my complaint with the CFPB [citi has 15 days to respond]
4/10 Citi requests a 60 day extension
4/22 Citi responds by citing T&C of credit card and T&C of TY
But my complaint was that the T&C are legally invalid and constitute enrichment by fraud -- not that I did not understand the T&C. So that's why I said non-response.
4/23 I informed the CFPB complaint system that I dispute the validity of citi's resposne
4/23 CFPB auto-responder explains that this is the end of what the CFPB can do.
In other words, CFPB is only valuable if they get a stack ton of complaints. Otherwise, there's no one looking at what is written and how it responds. Between now and then, I've been too busy to look further. My total cost in lost earned points is somewhere around $1200 to $1500 valuing TYP at 1 penny/point as their advertising does (or 1.33 pennies / point when I redeem from travel).
This means everyone who is adversely affected should file.
I also urge you to call CFPB to follow up on this.
Plus when the FTer's Petition is up for signature, do go there and put in your comments on how Citi treated your complaint. (The T&Cs are overly in favor of the bank - terminates relationship at any time without providing any specific reason.)
May 29, 2013, 9:38 pm
#887
FlyerTalk Evangelist
Join Date: Nov 2002
Location: BOS, MHT
Programs: AA ltg, B6, DL, UA, AS, SPG/Marriott Plt, HH, Hyatt
Posts: 10,052
Yeah, in a nutshell, that's what "our case" is.
Obviously, Citi's customers started using the Preferred card in a way that Citi did not anticipate. Of course, had they used a bit more intelligence, they should have anticipated this usage. After all, they were specifically INCENTIVIZING Preferred cardholders to spend as much as they could at gas stations, groceries and pharmacies. It was basically a "come on" to then profit on the customers' other spending.
The appropriate response to this "surprise" on Citi's part is not to go nuclear on its customers. All they did was what Citi encouraged them to do. Citi could have simply clarified and/or modified the terms of the promotion -- and not treat its cardholders and customers as crooks.
Obviously, Citi's customers started using the Preferred card in a way that Citi did not anticipate. Of course, had they used a bit more intelligence, they should have anticipated this usage. After all, they were specifically INCENTIVIZING Preferred cardholders to spend as much as they could at gas stations, groceries and pharmacies. It was basically a "come on" to then profit on the customers' other spending.
The appropriate response to this "surprise" on Citi's part is not to go nuclear on its customers. All they did was what Citi encouraged them to do. Citi could have simply clarified and/or modified the terms of the promotion -- and not treat its cardholders and customers as crooks.
I dont think that is correct. Visa, MC and AMEX have specific % that they charge the merchants. I think AMEX has the highest % and that is why some of them try not to accept it. Card type (rewards vs non-rew) has nothing to do with it. It is more like a clearing house charge.
I have a question for the high spenders. If you buy say 20k a month, do you have a high credit limit or 1) do you pay once a month or 2) several times a month?
I have a question for the high spenders. If you buy say 20k a month, do you have a high credit limit or 1) do you pay once a month or 2) several times a month?
EDIT>>> to answer the second part. I spent, paid, spent, paid, spent, paid... etc. Would or could come up against my CL but I always paid it off several times in a statement period and then just spent up to it again. My theory now is that it's not really about what we BOUGHT, but how many points we ended up having in our coffers! Add this to ANY infraction as seen by citi, OR the check cashing thing, and BOOM yer out! As well, there COULD be something about the link to the preferred card and how they didnt want any of us around who actually got one of those cards. Yes, they really should have handled it all much differently.
same as above. exactly!
May 29, 2013, 10:40 pm
#888
Join Date: Jun 2011
Location: AL
Programs: All of the Above
Posts: 1,374
My biz takes lots of different CCs each month. My statement breaks down the type of CC into 20+ categories, all of which charge a similar, but different rate. Prepaids are the lowest rate, while top tier AmExs are the highest. They most certainly charge different percentages.
May 30, 2013, 3:37 am
#889
Join Date: Sep 2008
Location: CTS
Programs: AA:1MM
Posts: 743
My biz takes lots of different CCs each month. My statement breaks down the type of CC into 20+ categories, all of which charge a similar, but different rate. Prepaids are the lowest rate, while top tier AmExs are the highest. They most certainly charge different percentages.
May 30, 2013, 7:53 am
#890
Join Date: Aug 2009
Location: RDU
Programs: A few
Posts: 5,499
As someone who is deeply involved in a major federal civil suit against a large corporation where we are making very specific allegations of mail and wire fraud, I can tell you that your statement is wholly and completely incorrect. Please don't post information as fact when it is completely wrong.
May 30, 2013, 8:04 am
#891
In Memoriam, FlyerTalk Evangelist
Join Date: Jun 2000
Location: Benicia CA
Programs: Alaska MVP Gold 75K, AA 3.8MM, UA 1.1MM, enjoying the retired life
Posts: 31,849
U.S. Postal Inspectors investigate any crime in which the U.S. Mail is used to further a scheme--whether it originated in the mail, by telephone, or on the Internet. The use of the U.S. Mail is what makes it mail fraud.
May 30, 2013, 8:10 am
#892
Join Date: Jun 2011
Location: AL
Programs: All of the Above
Posts: 1,374
That is true, but this is a part of a large prenegotiated group, that takes in hundreds of millions each year. Granted we aren't processing as much as walmart, but it's not small potatoes.
May 30, 2013, 8:17 am
#893
Join Date: Aug 2009
Location: RDU
Programs: A few
Posts: 5,499
Again just to be clear I am driving a lawsuit where we are spending, ooh, maybe around $1.5m a year in legal fees with a central focus on mail fraud. We did not discuss this case with the US Postal Inspectors. We filed suit in a federal court. So this is a bit closer to home than running around google trying to find pointless links.
It was this exact connection that made me think of the applicability of mail fraud to what Citi is doing here. The difficulty in this case would be demonstrating that Citi devised the scheme to defraud customers, but frankly I could see a reasonable case being made that they made an offer to solicit business using a bogus 5% offer and then purposefully retracted that and confiscated the bait they used. Frankly one could easily weave in wire fraud allegations if some of the solicitation was made by television commercials too.
May 30, 2013, 10:47 am
#894
Join Date: Apr 2013
Posts: 77
Oh no, I couldn't log into my thank you account today.
Citi told me my thank you account is being under review. Oh no!
I didn't even accrue that many thank you points to be honest. I only have 500 left.
What I think triggered the review was that I redeemed my points for a student loan rebate of $250 last week.
Citi told me my thank you account is being under review. Oh no!
I didn't even accrue that many thank you points to be honest. I only have 500 left.
What I think triggered the review was that I redeemed my points for a student loan rebate of $250 last week.
May 30, 2013, 10:55 am
#897
Join Date: Nov 2011
Posts: 1,944
Oh no, I couldn't log into my thank you account today.
Citi told me my thank you account is being under review. Oh no!
I didn't even accrue that many thank you points to be honest. I only have 500 left.
What I think triggered the review was that I redeemed my points for a student loan rebate of $250 last week.
Citi told me my thank you account is being under review. Oh no!
I didn't even accrue that many thank you points to be honest. I only have 500 left.
What I think triggered the review was that I redeemed my points for a student loan rebate of $250 last week.
May 30, 2013, 11:02 am
#900
Join Date: Apr 2013
Posts: 77