How to fix Citibank Charge Off ... Help!

[leg0817]

My now deceased mom’s Citibank checking account linked line of credit is now showing as a charge off on my credit report after I was added to her checking account following her stroke. I was added to the checking account so I could arrange autopay of her monthly expenses.

The amount due is small (under $900) but since the account is charged off and not in my name, Citibank won’t accept payment. But each month they report this charge off to the credit agencies which of course is hammering my credit scores. 

I've spoken to Citbank reps in the Estate dept and they say this should not be on my credit report and will recommend removal with a letter to me but something happens within Citibank that blocks this from happening.

Citibank's collection dept referred me to an outside law firm and they only list my mom's name on the debt and thus have said if I pay this bill, it will resolve the balance due by my mom's estate but no guarantee whether Citibank will be updated or remove from my credit report after payment is made. 

Each month, Citibank sends an update to each of the credit bureaus saying "account has been reported as past due" and each month the "past due amount" shows as if the account is somehow active. Some of the credit bureaus even add this amount to my credit utilization figure. I pay my credit card balances to zero or very close so utilization is 0- 2% but with this amount, it will be reflected as over 10% if my credit card payment doesn't hit at precisely the right time.

Uggh... I'd love some recommendations on how to resolve

1. Is Citibank violating any laws by reporting this charge as my expense?

2. Is Citibank allowed to send monthly updates to the credit bureaus noting this as a delinquent account., over credit limit charge (credit line was $750... with late pay fees now listed with an outstanding charged off balance of $877?)

3. Any suggestions on how to resolve?

[Ramsport]

The same thing happened to me but with my grandmother.

Citibank is the worst to deal with. Stop contacting them if only to say you will sue them for reporting inaccurate information on your credit reports.

The reason it's inaccurate is because you tried to pay the debt and they're refusing payment because your name is 'what' not on the account. One more call to Citibank get them to repeat that jot down the name of the person. And take yourself down to small claims and file. 

When you go to court you tell them that you tried to pay the debt and Citibank refused it.

[Murph5065]

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@leg0817 wrote:

My now deceased mom’s Citibank checking account linked line of credit is now showing as a charge off on my credit report after I was added to her checking account following her stroke. I was added to the checking account so I could arrange autopay of her monthly expenses.

The amount due is small (under $900) but since the account is charged off and not in my name, Citibank won’t accept payment. But each month they report this charge off to the credit agencies which of course is hammering my credit scores. 

I've spoken to Citbank reps in the Estate dept and they say this should not be on my credit report and will recommend removal with a letter to me but something happens within Citibank that blocks this from happening.

Citibank's collection dept referred me to an outside law firm and they only list my mom's name on the debt and thus have said if I pay this bill, it will resolve the balance due by my mom's estate but no guarantee whether Citibank will be updated or remove from my credit report after payment is made. 

Each month, Citibank sends an update to each of the credit bureaus saying "account has been reported as past due" and each month the "past due amount" shows as if the account is somehow active. Some of the credit bureaus even add this amount to my credit utilization figure. I pay my credit card balances to zero or very close so utilization is 0- 2% but with this amount, it will be reflected as over 10% if my credit card payment doesn't hit at precisely the right time.

Uggh... I'd love some recommendations on how to resolve

1. Is Citibank violating any laws by reporting this charge as my expense?

2. Is Citibank allowed to send monthly updates to the credit bureaus noting this as a delinquent account., over credit limit charge (credit line was $750... with late pay fees now listed with an outstanding charged off balance of $877?)

3. Any suggestions on how to resolve?

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Try going through the CFPB with proof and see what they can do to help u

[leg0817]

Thanks for the recommendation to pursue in small claims court. I am working with a credit repair company (Mortgage Ready) that I was referred to by my mortgage lender. 'My trying for 100 days. If this doesn't resolve, then I'll consider the small claims route! Thx again!

[leg0817]

Great suggestion, I will!

[tnhomestead]

As a side note, anything a credit repair company can do you can do yourself, for free. Folks here have more info than any repair company and will do you right. If you use any company, run their suggestions past some of these folks beforehand! 

I am up over 150 points just reading and following the ideas here! Low 500s to low 700s and still going up and for free!

[leg0817]

I appreciate the counsel ... and agree the advice available via this community is really useful. My scores are up as well even with this Citibank headache. I guess I was just open to trying something new for a few months with my lack of progress. But I didn't consider the small claims option or approaching CFPB.. I like both suggestions!

[Jnbmom]

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@leg0817 wrote:

I appreciate the counsel ... and agree the advice available via this community is really useful. My scores are up as well even with this Citibank headache. I guess I was just open to trying something new for a few months with my lack of progress. But I didn't consider the small claims option or approaching CFPB.. I like both suggestions!

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Yes I agree with contacting  the CFPB and get rid of the credit repair company , they take your money and sometimes make things worse. Nothing you can't do yourself . I would also continue to call Citi start with the estate department again get names asks for supervisors and don't let up until you speak with someone who will help you . Also the small claims court is a good idea.

[leg0817]

Thanks JnbMom for adding your recommendations. I appreciate the concurrence that pursuing via CFPB and small claims is the way to go. 

It really never occurred to me that a legal remedy via small claims could be an option. Can you or another poster clarify this approach? I haven't paid the $877 because Citibank won't accept and the rep at the law firm essentially advised me not to since my name isn't listed on the debt. (So no PFD option). Thus not sure how the small claims jurisdiction will enable me to pursue resolution of this matter and the specific elements of my complaint in that legal setting. Any help on this is really appreciated. 

I have the names of 2-3 staffers in the Citibank Estate Dept that have told me this is an error. In each instance while on the call with me they have promised to request the written release. The reps have actually put me on hold while they filled out the forms requesting the release be issued. At some point in the internal Citibank review/ approval process, the release gets stopped. I have not spoken to a supervisor in that department. 

Does anyone know if being added to my mom's bank account includes responsibility for other related services that might be linked to the account (like the credit line in this instance)? Would the loan obligations of a credit line specifically require me to sign documents for this product? I don't recall for certain but I don't think I did. Should I demand Citibank produce documentation of my agreeing to be responsible for the equity line? And if I did sign something reIated to the line of credit, is duress given the stress of my mom's severe health condition and the need to pay her bills, be a factor?

Any thoughts on the benefit of reaching out to the Citibank CEO's office for assistance? I found this online. The address for the Citibank Corporate Office is 388 Greenwich St, New York, NY 10013, United States. Tel: 212-793-0710 Fax: 1-866-533-0503. Is this the best contact info or is there a better address?

By the way, if Citibank believes this is truly my obligation because I am a customer, they have a strange way of showing it. Other than the letter the law firm rep sent to me after our conversation which restated the debt is in the name of my deceased mom's estate, I have never received a single letter, statement or call from Citibank. Nothing at all and I only knew this was outstanding when it was placed on my credit report.

Thanks all for the really helpful advice & counsel!

[FireMedic1]

Call them again and see if they'll send you a letter confirming the mistake on their end. Talk is cheap. Hello.....CFPB?