New Deal form Citicards...not what it seems

[Anonymous]

So last week I get a recorded message from Citicards talking about a "special offer" to get up to $550 back on my credit card account.  Usually if things seem too good to be true, they are so I didn't bother to call them back.

Today I recieved an e-mail with the same offer that included all the details:

"Earn up to $550 just for paying more than the
minimum on time.

Lowering your balance makes good financial sense – and the Citi Payment Partner Program can help you achieve it. Call 1-800-xxx-xxx to enroll now, and Citi will reward you with a 10% statement credit on the amount you pay over the minimum due on time.

• Get rewarded with a statement credit for paying more than the minimum on time within the next 4 months.
• Save money through reduced interest charges and no late fees.
• Build good credit by reducing your balance and paying on time.

Here’s how it works:

• Earnings will be credited to your account within 3 billing cycles after the offer period ends.
• Your account will be suspended until your statement credit is posted.
• Upon receiving your statement credit, your credit line will decrease by the total amount paid over the minimum, plus your statement credit."

Guess I was right.  Sure they give you the money back on your statement, but at the same time lower your credit limit by the bonus 10% back+ however much you paid over your minimum payment.  Pretty shady if you ask me.

[Anonymous]

Thanks for pointing that out. I won't mess with it if they offer, as Citi is my BT balance card. I don't think they mind though, they have CLI'd me twice now.

I think this is them trying to protect some of their assests for cardholders they may deem at a higher risk of default. 

[Anonymous]

I'm confused...are they doing this in the hopes people wont realize they are CLD'ing them? Is this supposed to be a promotion on cards already issued or on new cards?

Maybe this is a program for people who have fallen behind on their payments or are at very high utilization? That's what it seems like...

"Your account will be suspended until your statement credit has posted." What the H does that mean?

[niecey89]

It sounds like they need to pay the bill and more. Too shady for my taste. I have a Citicard and it is almost maxed out (i do make my payments on-time). But what I have notice that  for the last 3 months my minimum payments are getting lower. I always over pay between $5-10 a month depending on my budget.

[Anonymous]

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@Anonymous wrote:

I'm confused...are they doing this in the hopes people wont realize they are CLD'ing them? Is this supposed to be a promotion on cards already issued or on new cards?

Maybe this is a program for people who have fallen behind on their payments or are at very high utilization? That's what it seems like...

"Your account will be suspended until your statement credit has posted." What the H does that mean?

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According to the details on teh web-site, this offer is only for accounts in "good" standing.

Here is the fineprint:

"Eligibility
Your account must be in good standing to enroll in this program. You will not be able to enroll in this program if you are currently participating in a payment arrangement program. You will receive a confirmation letter within 2 to 3 weeks, which will provide confirmation of your enrollment, or the reason your account is ineligible to enroll. Should your account be enrolled, all on-time payments received on or after the date you called to enroll for a 4 month period will be eligible for the program. Payments received outside this offer period will not count toward the program.

Account Status
If at any point before your statement credit posted to your account, a purchase or charge is made to your account, including recurring payments, you enroll in a payment arrangement program, you consolidate the enrolled account into any Citi product, or you voluntarily withdraw from the program, your account will be removed from this program. Removal from the program for any reason will forfeit any accumulated statement credit earned. In addition the account will not be eligible for re-enrollment.

Calculation Method
Statement credit earned through this program will be calculated by multiplying the 10% matching percentage by a calculated matching base. The matching base will be the sum of the payments made during the offer period in excess of the required minimum payments. Payment dollars that result in a credit balance will not count towards the matching base.

The maximum statement credit earned through this program is $550. The total credit earned will be posted to the account via a one-time statement credit within 3 billing cycles after successful completion of the program. There is a limit of one statement credit per account.

Credit Limit
By accepting this offer, you authorize Citi Cards to reduce your credit limit, which will take effect within 3 billing cycles after the offer period ends. Your credit limit will be reduced by the following: An amount equal to the sum of the payments made in excess of the minimum due and the total statement credit earned through this program, minus any new debits and returned payments. Your cash limit will be reduced to no more than 30% of your new credit limit.

Please note that removal from this program for any reason or voluntary withdrawal from this program will still result in a credit limit reduction as stated above. You will not be eligible for re-enrollment and any accumulated statement credit you’ve earned will be forfeited"