Help me! Under attack by Citibank (1 Viewer)

[Ryan Wright]

I need help.

I have an $18k balance with Citibank. No, it's not irresponsibility, they gave me a fixed 3.9% for life rate and I transferred the balance of my truck to it. I've saved a ton of money on interest.

Two months ago I made a payment online. Something happened, either I forgot to put the last digit in the account number on, or their system truncated it. I was given a confirmation number and told "payment accepted". A month later (last month) I received a statement saying my payment had NOT been accepted due to the last digit missing from my account number, and they had increased my interest rate to 28%, and charged me $400+ in interest and hundreds of dollars in fees.

I called them on 5/28. They told me that they had credited all of the fees and fixed my interest rate back to 3.9%. I made a double-payment on the account to catch up for the previous month.

Yesterday I got my bill. They hadn't fixed the interest. Now I have another $450 in interest charged to the account. I should have a total of about $50 in interest, but I've got over $850 now!! I just talked to a supervisor. She fixed my interest rate back to 3.9% but is REFUSING to credit the $850+.

What do I do?!?! I sat here and argued with her on the phone but she won't give me my money back.

Here's my line of thinking:

1. I have a perfect credit rating. Absolutely perfect.
2. I refuse to pay the $850. This is extortion, and bullshit. She said "Well you put the account number in wrong." I said "OK, let's assume I did. I'll pay the first $400 you charged me for my supposed fault. You then can credit me the other $450 because your agent screwed up." She refused.
3. I've been told if I don't pay the $850 they will keep charging me interest based on that and will, eventually, send it to collections.

So they're going to totally trash my credit rating if I don't pay their extortion fee. If they're going to ruin it anyway, hell, I might as well stiff them for the entire $18k. Either way, my perfect credit is ruined. I told her this and she said "Making threats against the account isn't going to help you." Well, screw them. Look, I have more than enough money to pay this. It isn't about that. It's about what is right and wrong, and what they are doing to me is wrong.

What happens if I just stop making payments?

What happens when collections starts calling? What can they do to me? Note that this is UNSECURED debt. They can't come take my belongings over it, can they?

Can they sue me?

What happens if I declare bankruptcy? Obviously I'm not bankrupt, but I'd be willing to do it to stick it to those asshats. I am more than capable of paying cash for everything for the next 7 years.

Yes, I owe them the $18k and I know I should pay it. Up until now I never intended not to. But right now this is the only bargaining chip I have in this battle. How can I use it against them? All I want is the last two month's worth of back interest @ 28% reduced back to my normal rate of 3.9%. But if they're going to sue me and attack me and destroy my credit instead, then I might as well get something out of the deal. I figure I'm willing to trade ruined credit for not having to pay any of that debt. I mean, you know, if they're going to do it to me anyway.

Please advise.

 

[Thomas Newton]

But right now this is the only bargaining chip I have in this battle.

Contact the state Attorney General's office, the Better Business Bureau, and your own attorney. Perhaps one of them will be able to help.

Contacting your own lawyer may cost you more than the amount at stake, but hiring a lawyer would presumably be less harmful to your credit record than what you say you are thinking about doing.

 

[Tony Whalen]

1. Talk to your lawyer.

2. Talk to the BBB.

3. Talk to your bank (or a different bank), and move the loan elsewhere. Even if the interest rate is slightly higher, it's better than dealing with this additional stress...

Good luck! Hope this works out!

 

[Matt Gordon]

1.) You need to formally dispute the charges in a LETTER to them. Phone calls are not accepted on this type of issue.

2.) Get the woman back on the phone and use the six magic words: "Let me speak to your supervisor." I know she's a supervisor, but everybody's got a boss.

3.) You are correct that this is unsecured debt. It is not backed by any collateral, such as your home, your truck, your HT...

4.) Take the money elsewhere... another CC, a bank, anything.


Matt

 

[Max Knight]

If worse comes to worse, keep paying off until you get down to $850 (plus any new interest on that $850) and then quit paying. Keep records of every transaction and every contact.

 

[Jeff Ulmer]

As said above, you need to formally contest the charges in writing. hopefully you have the name of the person who screwed up the original charge, and that of the last person you spoke to. Document the series of events, and explain the situation.

Making threats, refusing to pay or declaring bancruptcy are not the way to deal with this. Just put everything in writing and formally request the interest charges be reversed.

I would also look for a different credit card to transfer your balance to, you should be able to get close to 0% these days with a good credit history.

 

[Ryan Wright]

OK, I've calmed down somewhat and have decided that refusing to pay any of it was a stupid idea. I am looking into what the BBB, Attorney General, and FTC can do for me. Also, I have been told to look into the "Fair Credit Billing Act", which I will be doing.

I would also look for a different credit card to transfer your balance to, you should be able to get close to 0% these days with a good credit history.

But that's an introductory rate, right? This 3.9% is fixed for the life of the balance, which is why I took advantage of it rather than a traditional vehicle loan. An intro rate that expires in 6 months does me no good, as it will be ~3 years before this is all paid for.

 

[Ted Lee]

you received the confirmation letter stating payment made correct? then, in everyones eyes, you made a payment. then they suddenly try to ding you?

what happened when you told them you received confirmation from them that payment was made? even if you did goof, they sent you a letter.

also, i can't believe she is being such a hard-ass. you even offered to pay the first set of 450 dollar fees? and they're still harping on you? :rolleyes

definitely talk to someone higher up? i know you're stressing cuz you don't wanna blow your credit (which you've worked hard for) but slow down and try to talk to citibank first. i can't believe that someone higher up can't make a call on this?

like someone said, everyone has a boss.

 

[Ryan Wright]

you received the confirmation letter stating payment made correct?

Well, it was a confirmation number given to me by their "Click To Pay" online system, but yes. I have a confirmation number for my payment, which their system said was "Accepted". The funds, however, were not taken out of my bank account. They WERE credited to my Citibank account, but they were taken back out a week later due to "invalid account number". After they alerted me to the problem, I wrote them a check for two month's worth of payments to cover it, but they still aren't crediting the $850 worth of interest charges. Bastards.

I've already filed complaints with the FTC, BBB, and State Attorney General via their respective websites, and I've got a written letter to Citibank printed & signed and going into the mail tonight.

 

[Kevin Alexander]

The funny thing is that once this battle all over, no matter how fierce and bloody it was, and the debt is paid off, that CC company will act as if nothing ever happened and will send you another great offer in the mail to do business w/ them.

 

[MickeS]

What I for the life of me can't understand is why a business is willing to piss off a customer like this. It must be obvious to everyone involved that it was an honest mistake on your part, so why are they trying to screw you over here? It makes no sense.

 

[Michael Boyd]

Hey Ryan, was that the first time you had entered your bank account number into their system? Ive been doing it for a year or so with no problems yet but your post is frightening me!

 

[Reginald Trent]

Quote:

As said above, you need to formally contest the charges in writing. hopefully you have the name of the person who screwed up the original charge, and that of the last person you spoke to. Document the series of events, and explain the situation.
-----------------------

Do everything stated above however, I would no longer deal with that woman supervisor. All future correspondence should be sent to CITI Bank's top person their title could be C.E.O. or possibly President. Call their 800 # and ask who heads CITI Bank?

This may seem silly but... once they tell you the name ask if there is anyone over that person. Once you are satisfied that you have the top person write them a calm, civil letter telling them you were unable to resolve the issue at the supervisory level and were forced to write the C.E.O.

Whatever, you do resist you desire to totally bad mouth the lady supervisor. You must appear to be a thoughful and reasonable customer.

I hope this helps, let us know.

BTW you should also cc the letter to the Federal Trade Commision, they regulate credit.

 

[Jeff Ulmer]

If you can find a card with a 0% interest there is nothing to stop you transfering the balance again in 6 months to another card.

 

[Mike Voigt]

Do all of the above, get the credit to the account, wait a month - an then pay off the ENTIRE balance.

They live off the interest rate. That is one of their main business lines. By paying it off, you are cutting into their bottom line.

I know the rate is good - quite good - although frankly you can get in the 4% range from a credit union.

Once you pay it off, your insurance payments will probably be reduced, as you're not forced anymore to carry the types of coverage the lenders require... that too is worth something...

 

[Ryan Wright]

Once you pay it off, your insurance payments will probably be reduced, as you're not forced anymore to carry the types of coverage the lenders require... that too is worth something...

I think you misunderstand. Citibank doesn't require any insurance. I traded my normal auto loan (secured by the vehicle) for an unsecured credit card loan at a lower rate. It's just standard credit card debt now and is not tied to my vehicle or any other property, so Citibank has no say in the insurance.

I suppose I could always take out a normal vehicle loan again for the remaining balance, but the interest rate is likely to be at least 6-7%.

 

[Chris Lockwood]

I think I'll stick with paper checks for now.

 

[Matt Gordon]

I pay my Citibank credit card bill every month this way, and it's set up where I don't have to enter in account numbers anymore. Once you get it right, it's pretty seamless.

Sorry it didn't work out for you, Ryan... and I'm even sorrier that they've chosen to handle themselves that way.

 

[Ryan Wright]

Sorry it didn't work out for you, Ryan... and I'm even sorrier that they've chosen to handle themselves that way.

So am I.

I called Citibank again last night. The primary purpose of my call was to determine whether my interest rate had really been reduced to 3.9%, or if that previous supervisor had, in spite, left it at the level of insanity. I asked what my interest rate was, and I was told "3.9% fixed until paid for. Oh, wait a minute. There's an $11 balance that's at the normal rate." I asked her why this was so, as I don't use this card for purchases - it's purely my auto loan card right now - so the entire balance should have been at 3.9%. She went digging through the account and told me it had something to do with the interest rate calculations "because you defaulted on your loan."

Now I was upset. I calmly re-explained the entire situation, that I didn't default on the loan, but that their system screwed up. I told her about the wrong account number they claimed I gave them. She said, "Well, let's see. I show your routing & checking account number as x."

The account numbers she gave me were right!!!! And since I only gave them my bank account information ONCE, when I tried to use click to pay, that means they've had the right numbers the entire time!!!! So this wasn't my fault in any way, shape or form!!

I immediately asked to speak to a supervisor. An older lady answered who was very, very nice - not a raving psycho with a grudge like that last (expletive) I talked to. First she agreed to fix the $11 back to 3.9% like the rest of the loan. Then she agreed to refund my $850 in interest charges. She did say "This credit might come up in an audit and be reduced, so you should write us a letter, too." (I already did!).

So, we shall see what happens when I get my next statement. And hopefully my letter will stir some managers up - I'd imagine the "cc: Federal Trade Commission, Washington State Attorney General, Better Business Bureau" I put at the bottom will get it transferred to a higher-up ASAP.

I'll post back here as the situation changes. Thanks to everyone here for your suggestions and support.

 

[Jeff Ulmer]

Well, I'm glad to hear this sounds like it is being resolved, but in the future, it would be prudent to use the online account balance feature to ensure your payments actually made it through. Also, as you now know, always put these problems in writing, that way the other party can't claim you never called or there was a misunderstanding. A well drafted letter usually clears up these issues promptly, if not, they serve as good evidence should you need to pursue it further.