Citi question

[Anonymous]

I opted out of my Citi bank card in January, 2009 because I didn't want to pay 24.99%.  After a month, I received a letter from Citi stating I could receive a $15 statement credit if I made a $250.00 payment on my account.  I was not behind in my payments and I was sending more than the minimum payment to them.  I ignored the $250 because that amount was not in my mathematical vocabulary lol. 

Yesterday I received a postcard saying "Important information - open immediately".  They state that they have a new offer to help me pay down my balance even faster.  I am skeptical about calling them or any creditor for that matter after being burnt with Amex by calling them and asking what fees if any was included on my new  Clear card.  Next day my Clear account was CLD.  I guess they were scared I would actually use the card. 

This account that Citi wants me to pay down so fast should have been  closed because this card expired 3/09.  I have two other cards with them and there is no offer on them to be paid any faster.

Any advice or knowledge as to what this new offer may be?

[Anonymous]

Let us know when you find out.

However, Banks are interpreting minimum payments or marginally more than minimum payments as "maxed out on income" and are afraid you might be on the edge.....so they would LOVE you to pay it off.

If you are getting notices and offers to pay, you are all ready on the radar.  Calling them to see what it is won't change anything.  That is about like the ostrich putting head in sand.....lion still gonna eat cha if he's on the prowl.

[Anonymous]

I believe the 9.99% interest on my account is killing them as that is what they offered me if I would opt out.  I can still  use the card also, but I have not used it at all and don't plan to.

Anyway, what I am being approached for is the Citi Payment Partner Program which I agreed to take part in if I found  an offer that I liked.  The offer is explained better at CreditCards.com under the title/article, "Citi offer:  Volunteer for CL cut and get a bonus".  I would have to agree to pay about $2,700 in payments in eight months and receive a statement credit of $550 bonus.  If I don't pay that amount then the deal is void, I believe.  I have been cautioned about accepting this offer and not following through on the CreditCards.com site.

I'm not such a terrible customer.  They received a bailout at my expense and didn't offer me any of that to help me.

I will get to them soon enough.  I am snowballing their way soon. 

Thank you for your time txJohn. 

[Anonymous]

Tonia -

One thing to consider is that it appears you have the cross hairs on you.  And you may find yourself being balance chased or CLD even if you don't pay.

So, the question is:  what kind of return on investment will is $550 for a $2700 8 month payout and could you manage that?  That is a healthy return of around 20%.  And if you are going to get cut anyway, then why not take advantage of the offer, if it is within your reach.  If the payout isn't then it is a non-issue UNLESS, you can BT it to another card or personal loan.

The real concern here is that if they are willing to discount your debt (pay you) 20% to pay it off, you are almost guaranteed to see some type of CLD anyway, this is just their way of trying to hasten the payback.  In fact, to offer a 20% discount seems to me that they are viewing you as high risk, which means you may face substantial rate jacks in the future in addition to CLD, etc.

Anyway, explore your options and make the best decision for your financial circumstances.

[Anonymous]

Citi is offering some cardmembers up to a $550 bonus.  Whatever amount you pay in excess of your minimum due, Citi will match, up to $550.  The catch is whatever excess you pay above the minimum + the bonus, they will reduce your credit limit by that much.  Example, your minimum due is $100, you pay $300.  That's $200 above the minimum, they will match the $200 as a bonus.  But they will decrease your credit limit by $400.

That was the letter sent to me in February.  I didn't join the program.  I received another letter for a possible $250 credit.  Whatever, I pay in excess of the minimum. they will give me a 10% discount, up to $250.  This particular program doesn't have the stipulation of a CLD.  But we all know, they can do that anyway!

[Anonymous]

I thank you anythingispossible for explaining further the citi offer.

I am really untrusting of these banks now.  I pay more than the minimum and the supervisor I spoke to when my APR was raised, commented "You really do pay more than the minimum!!"  My minimum payment would run $85.00 a month and I would pay sometimes as much as $252.00 a month and that did no good; my APR went from 9.99% to 24.99%.  I always pay more than the minimum.  I have encountered this same problem  with Bank of America also.  Pay more than the minimum, be on time and never go over the limit and still can't trust them not to CLD you or other adverse actions.

I have since joined Dave Ramsey's Financial Peace University and that's about the only offer I see that is paying off!!! 

Thanks for the input.