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Citi & The CARD Act

ISawIt
Established Member

Citi & The CARD Act

I logged into my Citi account today and this is what I found:

 

"The CARD Act requires that every six months we review U.S. credit card accounts that have experienced an interest rate increase to determine whether they should receive a rate decrease. These reviews, which we have conducted since 2011, have benefited many of our customers by lowering their interest rates.

While we believed our methodology was sound, a periodic internal review identified potential flaws in the methodology being used to reevaluate interest rates that affected some cardholder accounts. We informed our regulators and revised our methodology going forward. We also conducted a comprehensive review to identify any customers who were impacted to determine how this happened to ensure it doesn't happen again.

We estimate that 90% of the interest rate savings due to customers were delivered as required. However, some U.S. card accounts will receive refunds which we will be providing with interest.

Of course, we are deeply disappointed and sincerely apologize to those affected. While we did identify the issue, it should have been identified sooner.

We are taking every action possible to provide refunds as quickly as possible. If you were financially impacted, you do not need to take any action; we will contact you and you will receive a refund check.

Refunds are expected to start later this year."

 

I've had a DC since 2011. In 2013, I had one 30 day late payment. Citi raised my interest rate to the penalty interest rate of 29.9% and would never lower it and would never approve an CL increase even though I made payments ontime and kept utilization down. Hmmm.

 

Discover $8000; Citi DC $1000;  Amex $2000; Cap 1 $3500

Transunion 701 | Experian 683 |  Equifax 697

12 REPLIES 12
awg420
Regular Contributor

Re: Citi & The CARD Act

I got an email with this to. They said it works out like $150ish per affected account. 

Message 2 of 13
longtimelurker
Mega Contributor

Re: Citi & The CARD Act


@awg420wrote:

I got an email with this to. They said it works out like $150ish per affected account. 


But I assume with a huge variation, depending how much balance was carried for how long (and how wrong the interest rate was)

Message 3 of 13

Re: Citi & The CARD Act

I'm reviving this dormant thread because today we opened the mail and received...

 

an almost $4000 Citi retroactive interest charges refund!

 

We had no idea this was coming, even though we had tangled with Citi over an interest rate hike after the CARD Act years ago. We can definitely use the windfall, even if it came from interest wrongly charged sometime over the last 8 years. I just wanted to post to let others know that the checks are coming out and could, possibly, be more than the $150 per affected member that was reported when this story broke.

Message 4 of 13
K-in-Boston
Moderator

Re: Citi & The CARD Act

$4,000?!?  That's insane!  DW received a check for $275 today!  Smiley Happy

(Neither of us have ever been late; but were both rate jacked by numerous lenders during the financial crisis.  I had no Citi cards (other than CBNA store cards) until 2 years ago.)

Message 5 of 13
pizza1
Community Leader
Super Contributor

Re: Citi & The CARD Act


@K-in-Boston wrote:

$4,000?!?  That's insane!  DW received a check for $275 today!  Smiley Happy

(Neither of us have ever been late; but were both rate jacked by numerous lenders during the financial crisis.  I had no Citi cards (other than CBNA store cards) until 2 years ago.)


@K-in-Boston, did you opt in for that or something? I received two postcards from Citi awhile back I think about a class action lawsuit thing and I didnt really read it, just chunked it in my shreader pile, lol...Did we need to do anything about the notice?? 


My rebuild worked for me, but won't necessarily work for you!
BK7 D/C- 08/2013
Message 6 of 13
DaQueeen131
Regular Contributor

Re: Citi & The CARD Act


@pizza1 wrote:

@K-in-Boston wrote:

$4,000?!?  That's insane!  DW received a check for $275 today!  Smiley Happy

(Neither of us have ever been late; but were both rate jacked by numerous lenders during the financial crisis.  I had no Citi cards (other than CBNA store cards) until 2 years ago.)


@K-in-Boston, did you opt in for that or something? I received two postcards from Citi awhile back I think about a class action lawsuit thing and I didnt really read it, just chunked it in my shreader pile, lol...Did we need to do anything about the notice?? 


My BF received an $1100 check about 2 weeks ago & I can tell you he certainly did not opt in for anything.. I initially assumed it was another solicitation from Citi but after reading the letter twice, I realized it was legit.. 🤭



Message 7 of 13
CreditCuriosity
Moderator

Re: Citi & The CARD Act


@ScoreUpScaleDown74 wrote:

I'm reviving this dormant thread because today we opened the mail and received...

 

an almost $4000 Citi retroactive interest charges refund!

 

We had no idea this was coming, even though we had tangled with Citi over an interest rate hike after the CARD Act years ago. We can definitely use the windfall, even if it came from interest wrongly charged sometime over the last 8 years. I just wanted to post to let others know that the checks are coming out and could, possibly, be more than the $150 per affected member that was reported when this story broke.


wowzers..may i ask how much you actually paid in interest that amount must of even been alot more scary?

Message 8 of 13
K-in-Boston
Moderator

Re: Citi & The CARD Act

@pizza1 as @DaQueeen131 said, no action needed.  Watch USPS Informed Delivery for this magical envelope:

Screen Shot 2018-08-28 at 10.33.14 PM.png

Message 9 of 13

Re: Citi & The CARD Act

Thanks. Approximately zillions? 12 years of treading water at 99% utilization on $30K CL (just on that card). Excellent payment history, but could not realistically begin to tackle debt until this year. 

Message 10 of 13
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