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Reports of New Citi Credit Card Annual Fees

Friday, February 12, 2010 - 7:39 AM
Several Fatwallet members have reported receiving letters from Citi informing them of new annual fees. According to one FW member, Citi is imposing a $60 annual fee, effective April 1, 2010. The fee will be credited upon the accumulation of $2400 in purchases. Cards affected include Citi Diamond Preferred Rewards MasterCard, Citi Dividend World MasterCard and Citi mtvU.

Have you received notice of new annual fees from your credit card? Make sure to check those letters. They may not just be advertising.
1
Ken TuminKen Tumin5,442 posts since
Nov 29, 2009
Rep Points: 123,743
1. Friday, February 12, 2010 - 1:32 PM
Citicard is imposing an annual fee of $60 beginning May 1.  I cancelled my card by phone within minutes of receiving notice.  Also, wrote for written confirmation.
1
AnonymousAnonymous2,281 posts since
May 9, 2010
Rep Points: 3,788
2. Friday, February 12, 2010 - 2:14 PM
Which Citi card did you have?
1
Ken TuminKen Tumin5,442 posts since
Nov 29, 2009
Rep Points: 123,743
3. Friday, February 12, 2010 - 5:47 PM
If they stick a fee on my card, they will lose another customer because I charge tens of thousands of dollars in purchases every year.
1
AnonymousAnonymous2,281 posts since
May 9, 2010
Rep Points: 3,788
4. Friday, February 12, 2010 - 6:21 PM
If you charge tens of thousands per year, the fee is waived.  I received a letter exactly as stated in the post - a $60 fee that's waived if you charge $2400 during the year.  It's their response to new credit card laws that are going into effect.  I can't cancel it fast enough!
1
AnonymousAnonymous2,281 posts since
May 9, 2010
Rep Points: 3,788
5. Sunday, February 14, 2010 - 1:10 PM
Citibank lost two more customers (with a combined time of 24 years worth of Citi Card holder status) with this BS fee they have choosen to impose.

Yes, we'll take a "small" hit on our credit scores but so what, that will be back up in no time as we are responsible credit holders.

There's also a thread now going on Slickdeals.net that has the same info and more about this fee - including a copy of the letter that Citi is sending to their customers.

 

http://slickdeals.net/forums/showthread.php?t=1865263
1
AnonymousAnonymous2,281 posts since
May 9, 2010
Rep Points: 3,788
6. Monday, February 15, 2010 - 11:53 AM
They lost another 10-year customer today.  They don't waive the fee, they just credit it back at the end of the year, if you've made enough purchases.  But the principle of it, that Citi takes and holds your $60 for the year, is enough for me to cancel.
1
AnonymousAnonymous2,281 posts since
May 9, 2010
Rep Points: 3,788
7. Tuesday, February 16, 2010 - 11:33 AM
My Dad just got the dreaded letter from Citi.  He has been a Citi customer for ages.  Personally, I have been a Citi card holder for almost 20 years now.  I have not gotten the letter, but Citi just lost 10 customers today.  My siblings, our spouses and both my parents will be closing our Citi accounts by day’s end, regardless if we all get the letter or not and that is just for starters.  This is not the way to treat long time customers and there are too many banks out there to put up with this. 
1
AnonymousAnonymous2,281 posts since
May 9, 2010
Rep Points: 3,788
8. Tuesday, February 16, 2010 - 5:34 PM
My husband and I both have citi cards and we both got the letter today.  I have had my citi card for 17 years.  We'll both be cancelling asap!
2
AnonymousAnonymous2,281 posts since
May 9, 2010
Rep Points: 3,788
9. Tuesday, February 16, 2010 - 6:36 PM
My wife just got this noticed today. Unfortunatly this is the only card where she is the primary holder with $20,000 credit available. We don't use this card and closing the account is a scarey option since I don't know how big of hit she'll take on her credit report. This is total BS, when I called it seemed they have no problem closing the account, why should they? In fact I think their goal is to get accounts to close that isn't making them any money .... an unused account is worthless to them and in fact increases thier exposer. NOT HAPPY RIGHT NOW!!!

I strongly encourge for all of you to don't get into the habit of always getting credit under the same person. I regret we didn't think about this ahead of time and balanced out who the primary holder/borrow was going to be. This would have been no issue for us if my wife had more cards under her name.
1
AnonymousAnonymous2,281 posts since
May 9, 2010
Rep Points: 3,788
10. Tuesday, February 16, 2010 - 6:42 PM
what a shame ... i do love their virtual credit card feature ... why dont other banks have this? this is the only feature that keeps me faithful to Citi.
1
AnonymousAnonymous2,281 posts since
May 9, 2010
Rep Points: 3,788
11. Tuesday, February 16, 2010 - 7:46 PM
Other Card Companies WILL follow this Annual Fee BS - you watch and see - and it's all in retaliation for the new Credit Card Laws being put into place this month by the Obama Administration...  Whether the new laws are to protect the CC Consumer, these CC Companies are ****ed and are taking it out on hard working, honest people who DO PAY THEIR BILLS AND ARE RESPONSIBLE WITH THEIR CREDIT LINES AND CARD ACCOUNTS.

Citi Card is going to lose ALOT of Customers by implementing this new annual fee.  $60 for what???  Those who are responsible and have excellent credit history should NOT be penalized by being F'd up the rear w/ excessive annual fees just because they cannot recoup their losses from the LOSERS who DON'T pay their bills or default on their maxed out credit card accounts.

This is total BS.  I hope Citi wakes up - because as soon as this spreads out to more Citi Card Holders, they're going to be losing customers very quickly...  Annual Fees - it's ridiculous...

CitiGroup and CitiBank was BAILED OUT BY THE GOV'T - remember all the bailouts?  Well, I guess they have to find some way of repaying the Gov't LOANS, so their Customer Base suffers and gets reamed hard.....  by the implementation of Annual Fees....

 

 

 

 
1
AnonymousAnonymous2,281 posts since
May 9, 2010
Rep Points: 3,788
12. Wednesday, February 17, 2010 - 8:00 AM
My wife and I both have cards with Citi, she got her letter in the mail yesterday so we closed the account.  I'm hoping since we use the other one more they won't send one to me but I doubt it.  When they do I will close the card :(
1
AnonymousAnonymous2,281 posts since
May 9, 2010
Rep Points: 3,788
13. Wednesday, February 17, 2010 - 8:52 AM
Citi is not the only card to offer virtual numbers.  Discover Card also has that feature.  Also, I doubt all credit cards will be following suite.  Citi was very irresponsible and is now hurting financially, so they are desperately trying to recoup lost revenue by ripping off their customers.  My in-laws sister works for Citi and she just got notice that her office location will be closing in 7 months.  Citi is a sinking ship and is going down fast, so start thinking about moving on now while you have more control.

Credit unions and local banks are a great place to take your business, because they tend to be more responsible than these big banks and they tend to value their customers more, much more!!
1
AnonymousAnonymous2,281 posts since
May 9, 2010
Rep Points: 3,788
14. Wednesday, February 17, 2010 - 9:53 AM
I received my letter yesterday.  I called and cancelled the minute I opened the letter.  If you have good credit, there is no need to do buisness with them.
1
AnonymousAnonymous2,281 posts since
May 9, 2010
Rep Points: 3,788
15. Wednesday, February 17, 2010 - 2:12 PM
I just got off the phone after calling thier number and my first question was:

Are you charging $60 acrossed the board to everyone that has the same card that I do?

The responce I received was "NO" Only cards that have been inactive.

(Here's the deal, I have been carrying a 3.99% balance that would be good until I payed it off. I've been paying the payment every month. Now all of the sudden I'm considered inactive??) 

I just laughed and told her that Chase tried to pull the same thing last year. Only they tried to impose a $10 fee a month. They charged my account for 2 months, then turned around and had to credit back the all the fees that I was imposed.

So, I believe I'll just wait this one out. I also believe that if they are going to single certain cardholders to charge them $60 and not do it acrossed the board, then that is not an ethical business practise and if I'm not mistaken it is also illegal!!!

I'm not a Lawyer but if there are Lawyers out there could you please respond and let me know if I am correct or not.

Thanks, Ed
1
AnonymousAnonymous2,281 posts since
May 9, 2010
Rep Points: 3,788
16. Wednesday, February 17, 2010 - 7:06 PM
i didnt know discover offered virtual number, thx for letting me know. btw, get a new card before you close ur Citi ... your rating will look better befor you close ur citi card.
1
AnonymousAnonymous2,281 posts since
May 9, 2010
Rep Points: 3,788
17. Saturday, February 20, 2010 - 1:29 PM
Got letter and canceled Citi® Diamond Preferred® Rewards card
1
AnonymousAnonymous2,281 posts since
May 9, 2010
Rep Points: 3,788
18. Sunday, February 21, 2010 - 11:29 PM
Maybe somebody will come up with a class action lawsuit, Count me in for that... I remember when Chase tried to charge for foreing transactions fees and there was a class action....We'll see.....at the end we are the customers and We are always right!!!!!!
1
AnonymousAnonymous2,281 posts since
May 9, 2010
Rep Points: 3,788
19. Monday, February 22, 2010 - 10:21 PM
Got the letter the other day and cancelled immediately.  11 years obviously do not mean anything, even the Citibank rep 'we hate to lose a customer who's been with us for 11 years.'  Well obviously not.  It was a little odd as the rep tried to avoid talking about cancellation of the account.  No balance, credit score may take a hit, but why am I going to pay a yearly fee for something I rarely use.  Bye bye Citibank, I'll stick with my other cards that have no fees and a much lower rate.
1
AnonymousAnonymous2,281 posts since
May 9, 2010
Rep Points: 3,788
20. Wednesday, February 24, 2010 - 3:13 PM
I too received the letter.  I went to the citicard website, and my exact same credit card, Platinum Select, is  still listed on the website as no annual fee. Nowhere on the website could I find a statement that one must charge $2,400 to the card to avoid an annual fee. I last checked the website 2/24/2010.
1
AnonymousAnonymous2,281 posts since
May 9, 2010
Rep Points: 3,788
21. Friday, February 26, 2010 - 12:24 PM
I immediately called Citibank to close my aocount (which I have not used in 2 years) upon getting their letter informing me of the $60 annual fee.    I only kept the card open so that it would not affect my credit rating if I closed it.

I asked them to mail me a Confirmation Letter that the account had indeed been closed.   They said it would be mailed to me in 5-7 days.   I did not get the letter after waiting two weeks.   So I called again yesterday.   They said the letter was mailed to me the first time I called but they would send me another letter.  

I am VERY CONCERNED that this company is playing games and will charge me the $60 fee when it goes into effect April 1, 2010.   I will not have proof that I tried to close the account and it will be their word against mine.   EVERYONE should request a CONFIRMATION LETTER which states this account has been closed. 

 

 

 

 

 
1
AnonymousAnonymous2,281 posts since
May 9, 2010
Rep Points: 3,788
22. Thursday, March 18, 2010 - 3:39 PM
dear friends i am using citi for almost last 4 years and i have good credit limit and my card is Premier Pass, one of friend said they are only hitting to those customers who are not using their card thats not right they are hitting cards not the persons eithr you use or not, i used this card last year and my total transaction was almost 10000 i hope will use more than 2400 $ for what they ask to waive fee but qs is are they gonna dictate me what to do or i have to control my stuff you all will agree we will have to control our finances so simply good bye citi.
1
AnonymousAnonymous2,281 posts since
May 9, 2010
Rep Points: 3,788
23. Tuesday, March 23, 2010 - 1:20 PM
Citi does not want the business of people who rarely use their cards, never pay late fees, and who pay their balances in full each month. Companies as large as Citi do extensive research before implementing changes they know will be unpopular.  If every cardholder who receieved a letter from Citi announcing the new annual fee cancelled his or her card that still would not be a big enough loss for Citi to reconsider imposing an annual fee.  There simply are not enough customers who use their cards sparingly to impact Citi's profit margins. However, if customers unaffected by the annual fee and customers with more marginal credit scores also defected then Citi might take notice. 
1
AnonymousAnonymous2,281 posts since
May 9, 2010
Rep Points: 3,788
24. Monday, March 29, 2010 - 1:33 PM
I cancelled my card a week ago after receiving my letter. Asked for written confirmation of cancellation and today I got something from Citi.  Surprise surprise...it is a new card for my old account thanking me for resigning up for it. They are ticking me off. I guess I am going to have to send them a certified letter letting them know I cancelled and I am not paying them that $60 fee.
1
AnonymousAnonymous2,281 posts since
May 9, 2010
Rep Points: 3,788
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