Beware of Citigroup (not related to terrorist)

[NCRedding]

Please be careful in your dealings with Citigroup/Citibank. Several years ago, I got a credit card from them. I have never used this account, and even closed it once, but then they sent me another card. Two yeard ago, they notified me that my credit limit was increased due to "the excellent way I managed my account"; two weeks after that, they notified me that they had increased my credit limit accidently. Two months ago, they gave me a $20 credit to use the card by June 30, which I chose not to do. Today, I received a notice dated 7/10, that they had closed my account on 7/4, due to "too many inquiries on my credit report". In talking with customer service tonight, this will be reported as an account closed, not at customer's request. She told me the only way to avoid this was to reapply and then close that account myself. So, I will have a negative on my account for a card I never used. BTW, I have ordered my credit report--I don't know what they are talking about unless I am now the victim of identity theft, as I haven't applied for any new credit since my Disney Visa in 2/04.

Of course, I know that I can file a challenge, but my credit report still shows that I have an account with a department store that was opened by me when I was 3 years old (and before I had a SSN)--I've been trying to get that corrected since 1991.

So, beware of this company and its unethical practices!!!

 

[Eeyore1954]

How is this unethical? The company sends you a credit card. If you didn't want the card, you could have easily closed the account, but you chose not to close it for at least 2 years. They've sent you some communications about the card, which you chose to ignore. Now when they close the account, not at your request, suddenly they are acting unethically? You had two years (or more) to close the account yourself. How long does it take to make a phone call or write them a letter?

Your credit report is your responsibility. If you don't want negative items like this appearing, you need to be more proactive in managing what credit accounts you decide to have open. This is not Citigroup's fault... it your's.

 

[EsmeraldaX]

My credit report shows several cards opened when I was a small child as well. Come to find out these accounts were opened by my well meaning parents adding my name to their cards to try and build up my good credit. In my case, it backfired, as my mom does not realize that banks look at debt as it relates to income that since my parents income is more than 8 times mine, they can afford to have credit card balances each month that are equal to my yearly salary.

So usually I'd get turned down for loans and the reason would be debts too high in relation to income or something like that. So I got my credit report. And saw that and asked my parents about it.

We had a big fight about it (they still don't quite get it) and eventually my mom took my name off the card and it is no longer on my credit report.

I always thought when you had a credit card and added a name to it (not a co-signer but like adding your kid or spouse) that it did not effect their credit, but apparently, sometimes it does.

 

[Doug123]

Eeyore1954 - Unless I'm mistaken, NCRedding said the account was closed once. Maybe unethical, maybe not. Certainly poor or incompetent business practices at the very least.

 

[Eeyore1954]

Originally posted by Doug123
Eeyore1954 - Unless I'm mistaken, NCRedding said the account was closed once. Maybe unethical, maybe not. Certainly poor or incompetent business practices at the very least.

I got that ... NCRedding said they closed the account once and Citigroup sent them another card.

My question is this... if they didn't want the card or account, why did they leave it open for at least 2 years? It doesn't take that much effort to close a credit card account and tell the company not to open any more in your name. Been there, done that.

But if you get a card, leave the account open and unused for 2 years, then complain when the company closes it, accusing the company of being unethical... that's just goofy logic. The company did nothing wrong in this case, certainly not poor or incompetent business practices. Maybe if people took the time to read their credit card contracts they might realize the responsibilities they have when then accept unsolicited credit card accounts.

 

[NCRedding]

EEyore 1954: I manage my credit quite well, thank you. In fact, I realize that some of the inquiries were for purchasing an office building which I was given prime minus one-half percent, with a cap of 6.5% over the life of the loan (which I think you will agree is an excellent rate, and which wouldn't be given to someone who cannot manage their credit)

What I view as unethical is that they pulled my credit report when I had not used the card, or requested an increase--did you know that your card companies can continue to pull your records well after you've applied? I also view it as unethical that they cancelled my card for actions that do not affect them and which will reflect as a card cancelled by company, not customer. I would also think that it is unethical to then advise me to reapply and close that account.

And yes, I did cancel this account. I have now asked that there be no more offers extended by Citibank. I do not care that they cancelled the account; I CARE VERY much that they will report this as closed for a reason other than "inactivity of account"

 

[oogieboogie]

NCRedding: post your exact thread on www.creditboards.com.

They can give you ways to clear up the inquiries and/or get that wrong account off and probably give you the right contacts.

DH is picantel on creditboards.com. He hates Citigroup and Crapital One with a vengance because they do this all the time. It doesn't just happen to you - they do this to thousands of people.

 

[welovedisneyx4]

A little OT of the OP, but in response to EsmeraldaX, I found out I had been on my parents Sears card since I was 6 months old!!

When we were applying for our home loan last year, the loan guy was asking about this Sears account that had the sky high balance and it was messing w/ the debt to income ratio. It was in excellent standing as far as the rating, but the balance was killing me! My parents had put appliances, central air and other large ticket items as well as normal clothing purchases on there.

I will say that Sears was VERY EFFICIENT in taking care of getting my name off the acct. I think the whole process took only 1 or 2 days! I was impressed!!

 

[NCRedding]

oogieboogie: Thanks for the info on creditboards.com

 

[Eeyore1954]

Originally posted by NCRedding
EEyore 1954: I manage my credit quite well, thank you. In fact, I realize that some of the inquiries were for purchasing an office building which I was given prime minus one-half percent, with a cap of 6.5% over the life of the loan (which I think you will agree is an excellent rate, and which wouldn't be given to someone who cannot manage their credit)

What I view as unethical is that they pulled my credit report when I had not used the card, or requested an increase--did you know that your card companies can continue to pull your records well after you've applied? I also view it as unethical that they cancelled my card for actions that do not affect them and which will reflect as a card cancelled by company, not customer. I would also think that it is unethical to then advise me to reapply and close that account.

And yes, I did cancel this account. I have now asked that there be no more offers extended by Citibank. I do not care that they cancelled the account; I CARE VERY much that they will report this as closed for a reason other than "inactivity of account"

Nothing the company did was unethical or illegal based on the standard credit contract you entered into when you accepted the 2nd card Citigroup mailed to you. Since you manage your credit very well, you would be aware of what any company that extends credit to you can and cannot do, including obtaining credit reports about you as long as you have an open, active account with them. That happens all the time as companies review accounts, adjust credit limits, analyze usage trends and plan marketing campaigns.

You have a card which you did not use for 2 years. Citigroup is well within its rights under the contract to cancel the account and report it as such on your credit report. If you want to avoid that in the future, I'd recommend canceling any unsolicited cards you receive immediately -- not hang onto them for 2 years. It's not like you didn't know the account was active, because you indicated receiving communications from Citigroup about the account.

You can always file a statement on your credit report about anything on it, but in this case, the report accurately reflects your history with Citigroup. It was your own inaction that resulted in this problem.

 

[NCRedding]

"Citigroup is well within its rights... to cancel the account and report it as such on your credit report."

I do not dispute this statement, but that is not what happened. They did not report it as cancelled due to inactivity, but due to something negative.

 

[Eeyore1954]

Originally posted by NCRedding
"Citigroup is well within its rights... to cancel the account and report it as such on your credit report."

I do not dispute this statement, but that is not what happened. They did not report it as cancelled due to inactivity, but due to something negative.

In your OP, you wrote "In talking with customer service tonight, this will be reported as an account closed, not at customer's request." You didn't use the account for 2 years; you chose not to cancel the account. So how is "account closed, not at customer's request" unethical? Is that not the simple truth?

 

[missypie]

Several years ago (when we were remodeling) I always had a "6 months no interest" credit card going. I'd use it for 6 months for major puchases, then pay it off, cancel it and go on to the next one.

Then one day I got a bill for something like $19.99 spent on some porn website from one of those credit cards that I'd had for about 2 years but never used. I'd forgotten I'd had the card (I didn't even physically have a card), and someone lucked into the number. I cancelled the card and didn't have to pay the $19.99 but that made me be very careful. Now I only have credit cards that I intend to keep and use over the long haul.

Also, be aware that it can be very difficult to cancel credit cards. That's the LAST thing the customer service folks want to hear. To this day I think that I actually HAD called to cancel that one card, but that they just didn't do it.