How You're Treated When You Play By Their Rules
Citibank closing hundreds of credit accounts, unannounced
"A business decision by Citibank has some experts scratching their heads. An unknown number of credit card accounts, co-branded with oil companies like Shell and Exxon-Mobil, have been closed by the creditor.
After filling up her gas tank, Shannon Burdette was confused when she was told her card had been rejected. AP reports that she called the customer service line on the back of the card, but was told her account was closed because of something that appeared on her credit report. The only negative statement on her report was the notice of closure by the creditor's request.
Citibank's reason for taking action against customers is unknown. The bank's spokesman declined to give an explanation for the massive closure, according to American Banking News. A statement issued by the bank pointed out that they “continuously evaluate their products.” Estimates for the number of account closures are in the hundreds.
A card being closed has the potential to damage a person's credit rating. If a customer had a high credit limit on their closed account and a high balance in another line of credit, the “utilization ratio” drives the customer's credit rating down, according to John Ulzheimer, president of educational services for Credit.com.
No law, including the recent Credit CARD Act, prohibits banks from closing credit accounts, even if no warning is given.
Citibank mailed out the closure letters only two days before the accounts were closed."
The entire credit system is broken beyond repair. It's collapsing. We have to realize that for decades the criminal banks kept changing the rules to their benefit until even when you play by them it's a suckers' game. From insane interest to ludicrous penalty fees to even a penalty for not carrying a balance to these no-reason-at-all cancellations your credit score is going south no matter how fast you spin that hamster wheel. Your credit score goes down every single time a creditor just looks at it and believe it, they're all looking these days.
"A business decision by Citibank has some experts scratching their heads. An unknown number of credit card accounts, co-branded with oil companies like Shell and Exxon-Mobil, have been closed by the creditor.
After filling up her gas tank, Shannon Burdette was confused when she was told her card had been rejected. AP reports that she called the customer service line on the back of the card, but was told her account was closed because of something that appeared on her credit report. The only negative statement on her report was the notice of closure by the creditor's request.
Citibank's reason for taking action against customers is unknown. The bank's spokesman declined to give an explanation for the massive closure, according to American Banking News. A statement issued by the bank pointed out that they “continuously evaluate their products.” Estimates for the number of account closures are in the hundreds.
A card being closed has the potential to damage a person's credit rating. If a customer had a high credit limit on their closed account and a high balance in another line of credit, the “utilization ratio” drives the customer's credit rating down, according to John Ulzheimer, president of educational services for Credit.com.
No law, including the recent Credit CARD Act, prohibits banks from closing credit accounts, even if no warning is given.
Citibank mailed out the closure letters only two days before the accounts were closed."
The entire credit system is broken beyond repair. It's collapsing. We have to realize that for decades the criminal banks kept changing the rules to their benefit until even when you play by them it's a suckers' game. From insane interest to ludicrous penalty fees to even a penalty for not carrying a balance to these no-reason-at-all cancellations your credit score is going south no matter how fast you spin that hamster wheel. Your credit score goes down every single time a creditor just looks at it and believe it, they're all looking these days.
posted by nolocontendere at 6:34 PM
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