Citi Costco Card Balance Chasing

[ridgebackpilot]

Twice in less than six months, Citi has reduced my CL using the well-known, despicable technique known as "balance chasing".

After the first CLD, I paid down my balance to reduce the card's utilization. Citi then took the opportunity to reduce my CL further, chasing my balance downward.

I called Citi Customer Service and reminded them that I'd never made a late payment or given them any reason to reduce my CL. I also told them none of my other card issuers have reduced my CLs. Citi's practice of "balance chasing" makes me want to pay off and close the card. I'd certainly do that if I didn't shop at Costco as much as I do! The CSR wasn't particularly sympathetic and reminded me I could ask for a CLI in six months. Thanks.... :-(

Anyone else experienced this poor customer service from Citi lately?

[Anonymous]

Balance chasing happens because of balances being carried for too long. I don't know what you expected the rep to say. If I was working in their customer service, I would advise you to pay down your card. They're obviously worried they might not get paid back and if they're worried about it, other lenders might be too. Balance chasing can set off a cascade of AA so I would do something about it ASAP. 

[coldfusion]

You were almost certainly balance-chased because of actions you took that indicated an elevated risk of default like a prolonged period of making mininum or just-above mininum payments against a large balance, or a huge surge in reported balances across multiple cards.  Any  thoughts of what might have triggered the balance-chasing? 

Taking steps to mitigate  risk isn't an inherently despicable practice BTW, in part that would depend upon the trigger and their specific response.

[Kforce]

Both @Anonymous  and @coldfusion  are correct.

In addition you should know that this is not personal.

It is a computer program making a decision that you look risky.

The big problem is that all the other issuers also use AI for risk.

Might be time to fix your profile as to not agitate the other computers, they fight back, you must have seen "The Terminator ".

[FinStar]

OP, echoing what's mentioned upthread, balance chasing is a very common [adverse action] industry-wide practice.  It isn't limited to Citi.  Your other lenders, such as Chase, AmEx, Discover, Barclays, etc., are known to do this as well depending on what triggers their specific risk tolerance parameters for adverse action.

Since you mentioned it's happened already 2x in < 6 months, I would try to address the issue(s) that's causing Citi to reduce your CL.   Citi is simply mitigating risk, that's all.  This could have a cascading effect in some cases.  Keep in mind, the front-line agents won't be able to do much.  It's all programatically done behind-the-scenes.  Hopefully, your interaction was pleasant with the agent.

[tcbofade]

I have no idea what caused your CLD.

My wife suffered a CLD from Citi not very long ago.   She wrote them a "Karen" letter and signed her name to it.  We placed it in the mail box, and someone at Citi had to read it.

Her credit limit was restored.

In her case, I could not find a reason for the CLD.

Good luck!

https://ficoforums.myfico.com/t5/Credit-Cards/Citi-Double-Cash-CLD-then-restored/m-p/6312690#M177582...

[ridgebackpilot]

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@Anonymous wrote:

I don't know what you expected the rep to say.

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Here's what I expected the Citi CSR to say: "Sir, we appreciate your business and responsible use of credit with Citi over the past decade. You've never missed a payment or given us any reason whatsoever to consider you a high risk cardholder. You've always paid far more than the minimum required each month. We apologize for the confusion caused by our computer algorithm and will restore your credit limit right away."

Customers who work hard to pay down card balances and reduce utilization shouldn't be rewarded by a CLD. Repeated CLDs, or "balance chasing", makes it virtually impossible to achieve low utilization. Is that any way to treat customers who are trying to be responsible credit customers?

I've always respected the expertise on these forums. But it seems some of those here have become so accustomed to how the current credit systems works, they never question it. I hope we don't become like those ancient Roman scientists who, when Rome was burning, responded only by becoming experts on the nature of combustion.

[Anonymous]

OP, I know the AA sucks. Up thread someone mentioned writing a letter and  others mentioned looking at your file to determine what's causing citi to decrease your limit. Maybe try both. Also, if you care to clarify what, if anything, may be triggering the cld, perhaps you'd get more suggestions on how to turn things around and help another member avoid this situation all together. Good luck

[Shooting-For-800]

Utilization on card?

Utilation across all cards?

[dragontears]

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@ridgebackpilot wrote:

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@Anonymous wrote:

I don't know what you expected the rep to say.

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Here's what I expected the Citi CSR to say: "Sir, we apprecaite your business and responsible use of credit with Citi over the past decade. You've never missed a payment or given us any reason whatsoever to consider you a high risk cardholder. You've always paid far more than the minimum required each month. We apologize for the confusion caused by our computer algorithm and will restore your credit limit right away."

Customers who work hard to pay down card balances and reduce utilization shouldn't be rewarded by a CLD. Repeated CLDs, or "balance chasing", makes it virtually impossible to achieve low utilization. Is that any way to treat customers who are trying to be responsible credit customers?

I've always respected the expertise on these forums. But it seems some of those here have become so accustomed to how the current credit systems works, they never question it. I hope we don't become like those ancient Roman scientists who, when Rome was burning, responded only by becoming experts on the nature of combustion.

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I am sure that it would have made you feel better if the CSR had said that but normally they are not trained to lie.

You seem to be under the impression that the only risk factors lenders care about is late payments. High utilization IS a major risk factor otherwise it wouldn't carry so much weight in credit scoring. 

Address the cause, don't blame the symptom.