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Bad Service!!! Citi begin to charge AF on my Citi Credit Card.

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Anonymous
Not applicable

Bad Service!!! Citi begin to charge AF on my Citi Credit Card.

Hi everyone!   I am so mad because I received a letter from Citi as shown in below.

 

We're writing to let you know about an important change we're making to your account.  Effective April 1, 2010, and annual fee of $60 is being added.

 

The reason we are making this changes is to maintain the quality of our service amid the rising cost of doing business.  However, because we value you as a customer, we wanted to give you an opportunity to have the annual fee credited back to your account.

 

Here's how it works.  Each year, we'll credit the $60 fee back to your account once you have made $2,400 in purchases during that year.  That comes to an average of $200 in spending a month, and amount you can reach by using your card for purchases you already make, like gas, groceries, cell phone plans or your cable bill.

 

As always, you have the right to opt out of this change and close your account.  Please read the Notice of Change in Terms and Right to Opt Out beginning on the back of this letter so you are fully aware of all your account changes.  If you have questions, call 1-866-915-9425

 

 

Has anyone received a letter like this? 

I am not keeping this card.  I am going to close this card by March 31, 2010. 

 

Before I close this card, I want to redeem my rewards.  I have earned reward about $36 at this moment, and I must have minimum of $50 to redeem my reward.  I only have four weeks to earn additional $14, which I must charge on this Citi Driver's Edge card at about $470 (Gas, Groceries and Drug Stores  with 3% rewards).   Smiley Mad   My average charge on this card is $150 ~ $200 (Gas, Groceries and Drug Stores).   I don't want to waste my hard earned reward amount of $36.

Questions:

If you are in my shoes, what would you do?  

Do you try to charge more to redeem $50?  

Stop using this card and forget $36 reward?

 

Message 1 of 21
20 REPLIES 20
score_building
Senior Contributor

Re: Bad Service!!! Citi begin to charge AF on my Citi Credit Card.


haven't received the notice yet but I'd probably go ahead and charge enough for the 50 reward and close,

or pay the fee for just the 1st year and then decide.  the only AF I've coughed up during my twenty something year history is an amex revolver AF of 35 for the past couple of years, so I have been quite AF adverse generally speaking but the landscape may be changing quickly and may have to revise my approach going forward esp. since I do not always fit the spendcentric profile that may be increasingly required on revolving and charge accts.

 

this type of CIT may become more common and incl even less favorable terms, we shall see. 

DCU EQ 5.0, Citi EQ 08 Bankcard, PenFed EX NG2
EX 08: AFCU, Amex, Chase, PSECU EX 98(?)
TU 08: Barclays, Discover
Message 2 of 21
Uborrow-Upay
Valued Contributor

Re: Bad Service!!! Citi begin to charge AF on my Citi Credit Card.

Hey, bunnyrabbit! I have taken the liberty of composing a response to Citi on your behalf. It may not do any good, but it may make you feel better!

 

 

Dear Citi,

I'm writing to let you know about an important change I'm making to my account. Effective March 31st, 2010, the annual fee of $60 for my Citi card is no longer a concern, as I am closing this account.

The reason I am making this change is to maintain my quality of life amid the rising costs of doing business with you. However, because I value you as a convenience, I wanted to give you an opportunity to waive the annual fee.

Here's how it works. Each year that you waive the annual fee, I will continue to use this card in the manner that I feel is most appropriate for my situation. Whatever transaction fees I generate by using my card for purchases I already make, like gas, groceries, cell phone plans or my cable bill, are yours to keep.

As always, you have the right to opt out of this change and close my account, as I refuse to pay this annual fee or any subsequent annual fees. If you choose to opt out, you are still responsible for payment of all earned rewards balances on this account. Please forward your check to me in the amount of $36 for my accumulated, earned rewards balance no later than 15 days following your opt out of this change in terms..

I appreciate your position, and would prefer to continue this valued relationship, but you will have to get your $60 somewhere else.

Sincerely,


(insert name here)





Ref: 021910.UB-UP


 

 

 

Message 3 of 21
DI
Super Contributor

Re: Bad Service!!! Citi begin to charge AF on my Citi Credit Card.


@Uborrow-Upay wrote:

Hey, bunnyrabbit! I have taken the liberty of composing a response to Citi on your behalf. It may not do any good, but it may make you feel better!

 

 

Dear Citi,

I'm writing to let you know about an important change I'm making to my account. Effective March 31st, 2010, the annual fee of $60 for my Citi card is no longer a concern, as I am closing this account.

The reason I am making this change is to maintain my quality of life amid the rising costs of doing business with you. However, because I value you as a convenience, I wanted to give you an opportunity to waive the annual fee.

Here's how it works. Each year that you waive the annual fee, I will continue to use this card in the manner that I feel is most appropriate for my situation. Whatever transaction fees I generate by using my card for purchases I already make, like gas, groceries, cell phone plans or my cable bill, are yours to keep.

As always, you have the right to opt out of this change and close my account, as I refuse to pay this annual fee or any subsequent annual fees. If you choose to opt out, you are still responsible for payment of all earned rewards balances on this account. Please forward your check to me in the amount of $36 for my accumulated, earned rewards balance no later than 15 days following your opt out of this change in terms..

I appreciate your position, and would prefer to continue this valued relationship, but you will have to get your $60 somewhere else.

Sincerely,


(insert name here)





Ref: 021910.UB-UP

 

 

 


I like your response letter.  If I get the letter, I'd definitely use it.  

Message 4 of 21
Watchmann
Valued Contributor

Re: Bad Service!!! Citi begin to charge AF on my Citi Credit Card.

Frankly, I don't quite understand the phobia and hatred over AF's.   Why shouldn't we pay for some of the convenience that credit cards provide?  We have all gotten used to high CL cards being showered upon us for FREE, FREE, FREE  which we sock drawer and use once every couple of months to keep an artifically high FICO.  This makes no money for the issuing bank so why should they continue to do that?  It makes no business sense to tie up reserves in unproductive customers.  The fee will separate good customers from the no use customers.

 

Obviously free is better than having to spend money, but if you really need and use the account I think a fee such as $60 is not outrageous.  I have just passed 30 years with AMEX and have had a Gold card since Day 1.  AF has probably averaged $120 over the years but I don't look at it like I have flushed $3,600 down the toilet, it was a fee that has helped me travel the world without having to carry money or make other arrangements.  AF's are the coming trend and we better be prepared for them.  I think asking a customer to charge at least $200 a month to keep the account open is not unreasonable..

Message 5 of 21
Anonymous
Not applicable

Re: Bad Service!!! Citi begin to charge AF on my Citi Credit Card.

Hi Uborrow-Upay,

You are so clever!!   LOL!!!!!!!!    Smiley Wink  

If this letter will works, I will send this to Citi.   What do you think everyone?

 

Dear Citi,

I'm writing to let you know about an important change I'm making to my account. Effective March 31st, 2010, the annual fee of $60 for my Citi card is no longer a concern, as I am closing this account.

The reason I am making this change is to maintain my quality of life amid the rising costs of doing business with you. However, because I value you as a convenience, I wanted to give you an opportunity to waive the annual fee.

Here's how it works. Each year that you waive the annual fee, I will continue to use this card in the manner that I feel is most appropriate for my situation. Whatever transaction fees I generate by using my card for purchases I already make, like gas, groceries, cell phone plans or my cable bill, are yours to keep.

As always, you have the right to opt out of this change and close my account, as I refuse to pay this annual fee or any subsequent annual fees. If you choose to opt out, you are still responsible for payment of all earned rewards balances on this account. Please forward your check to me in the amount of $36 for my accumulated, earned rewards balance no later than 15 days following your opt out of this change in terms..

I appreciate your position, and would prefer to continue this valued relationship, but you will have to get your $60 somewhere else.

Sincerely,


(insert name here)





Ref: 021910.UB-UP

Message 6 of 21
Watchmann
Valued Contributor

Re: Bad Service!!! Citi begin to charge AF on my Citi Credit Card.

I think it will make you feel better for 44 cents, but it won't accomplish anything.  Citi will be thinking, "If you can't generate $40 to $50 in fees for us over a year we don't need you as a customer.  We can use your credit line for other businesses or individuals that will generate income for Citi.  Thank you for your past relationship and if you want to use our products in a mutually beneficial way in the future Citi will be happy to explore that possibility".  That's what they will be thinking.
Message 7 of 21
Anonymous
Not applicable

Re: Bad Service!!! Citi begin to charge AF on my Citi Credit Card.

lol, nice message

 

 

Dear, Citi

 

Please close my account ASAP. I find no quality of life for being forced to use $2,400 a year from my hard earned money. Please find other Citi customers who is willing to pay the $60 annual fee. As for me, I'm graduating from life and moving on to a better credit card company. NOT only will you NOT get my $60 annual fee, you will also NOT get any part of the transaction fee my card is generating. Please close my account ASAP. Also, please send me a check for my rewards balance. I have a laywer in standby.

Message 8 of 21
Anonymous
Not applicable

Re: Bad Service!!! Citi begin to charge AF on my Citi Credit Card.

http://www.moneytalksnews.com/2010/02/19/citi-adds-60-annual-fee-to-more-credit-card-accounts/
Message 9 of 21
jausanka
Frequent Contributor

Re: Bad Service!!! Citi begin to charge AF on my Citi Credit Card.


@Anonymous wrote:

lol, nice message

 

 

Dear, Citi

 

Please close my account ASAP. I find no quality of life for being forced to use $2,400 a year from my hard earned money. Please find other Citi customers who is willing to pay the $60 annual fee. As for me, I'm graduating from life and moving on to a better credit card company. NOT only will you NOT get my $60 annual fee, you will also NOT get any part of the transaction fee my card is generating. Please close my account ASAP. Also, please send me a check for my rewards balance. I have a laywer in standby.


 

Emotion + business/financial decision = bad.

 

1. Who is forcing you to used $2,400 a year of your hard earned money?  Did they send a knuckle-crusher to hand-deliver their CIT?

2. I don't know what graduating from life means... don't think they would either, but YMMV

3. Are you looking for a response from them, begging you to please stay?  If so, commenting that you have a lawyer means that they must now contact you only through your lawyer.  If you are bluffing, you have now shot yourself in the foot if they reconsider and decide to waive the Annual Fee you are so adamant about having waived.  What are you threatening them with a lawyer for, anyway?  Over your $36 in rewards?  Really?  What will it cost you to claim that $36 in rewards by hiring a lawyer?  How much will you pay said lawyer before he tells you that you signed a contract describing the terms of the rewards program, and that in that contract, you acknowledged that unclaimed rewards will be forfeited upon closure of account, and that at least $50 must be earned before redemption?

 

In a broader sense.. what are you trying to accomplish with any credit card?  Most people are asking for the issuer to lend them money upfront to be repaid at a later date based on faith and a nominal rate of interest.  The lender stays in business by collecting this interest so long as it is higher than the amount of interest they paid to borrow the money to lend you.  If you are not paying more in interest than they are spending to lend you the money, you are worthless to the bank (financially speaking.. which, in reality, is the only thing that matters in a business).  They can also make money from fees if you use the card throughout the year.  The amount they collect is small, but if enough small amounts are collected, it can be profitable for them.  This may offset a loss in interest charges you are not paying them if you PIF.  However, there needs to be a significant amount of transactions to make this worthwhile for the bank.  Now, if you don't revolve a balance and pay interest, and you don't use your card frequently enough to make the bank profitable through transaction fees, why would the bank want you as a customer?  They give you one final option, pay a small annual fee to offset their costs and make it worthwhile for them to continue servicing your account.  $60 per year is $5 a month, or roughly $0.16 a day.  This is a fee they give you the option of paying (only if you choose to), and in return, they will make money available to you 24 hours a day, 7 days a week, up to your credit limit, with no additional paperwork, signatures, or reviews necessary.  A lot of people enjoy this convenience.

 

If you are not one of these people, close your account and move on to another business relationship with another bank.  Nobody is forcing you to do anything you don't want to.

 

**edited for grammar and spelling**

Message Edited by jausanka on 02-19-2010 10:47 AM
Message 10 of 21
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