Citibank CC incident -- anyone else have this problem?

[markusk]

I need to vent. And I hope it makes sense.

My wife and I each had a Citibank Dividend Platinum Select Card which gave each of us 1% cash back, max of $200/year. We use the card alot, pay everything in full each month. Over the last 3 years, we've collected (together) about $320-350/year.

About 2 months ago, before our move to the West Coast, we get notices that our accounts will be upgraded to Citibank Dividend World Master Card, and 1% cash back will continue. 2 weeks later, I get my new card, so I cancel my old one and activate the new one. My wife does not get her card.

The move went smoothly. We notified everyone of our new address (including Citibank, all by online access) and the post-office to forward our mail. Fine.

2 weeks ago, my wife's Citibank Dividend Platinum Select Card is rejected from Target. No problem, she pays in cash. That night we call customer service and they say the card is cancelled because the new Citibank Dividend World Master Card was sent. It should arrive "in the next few days." We should have asked: who cancelled the card? Why was the old card cancelled? Shouldn't you wait until we activate the new card before cancelling the old? But we didn't ask.

We call back in a few days because the card has not arrived. They tell us that it must be lost in the mail. They cancel that card and will issue a new card with a different account number.

Today, we call customer service again, because 2 weeks had passed, and still no card. The rep asks my wife for the password, last 4 digits of SS#, and the last 2 purchases on the card. She can answer everything but the purchases. I quickly chime in that I can't find the latest statement, and have to turn on the computer and open Quicken (I download all transactions daily) can you wait 1-2 minutes? BUT SHE CAN NOT WAIT. The rep transfers us to the "fraud" department. I now have Quicken open and can recite every transaction from since we opened the account. The fraud department transfers us back to customer service.

It's a different rep.

Me: Did you send the new card?
Rep: Your wife's account was cancelled. You will be notified by mail why it was cancelled in 5-7 days.

Me: [?] So the card was never sent?
Rep: It was sent, but it was returned. Your wife's account is now cancelled. You will be notified by mail why it was cancelled in 5-7 days.

Me: [??] What do you mean the new card was returned? Who returned it?
Rep: We sent you the new card, but you never received it, so it was cancelled. So we sent a second card with a different account number and it was returned. Your wife's account is cancelled. You will be notified by mail why it was cancelled in 5-7 days.

Me: Did you send it to the right address? Who returned it?
Rep: I don't have that information.

Me:[???] Well I know you have the correct address because I'm still getting my Citibank credit card bills. So can you send us another card?
Rep: No. Your wife's account is cancelled. You will be notified by mail why it was cancelled in 5-7 days. If she wants a new card, we can send her an application she can fill out for a new card.

Me:[????] Wait a minute. Was anything charged on the first card that was never received or the second card that was returned?
Rep: No. There were no fraudulent charges. You will be notified by mail why it was cancelled in 5-7 days.

That's about it. For awhile, it felt like an Abbot and Costello's who's on first routine. Then I got frustrated, then angry. I still don't know what happened. I want to cancel my own Citibank credit card to spite them.

Questions:
1. Has anyone gone thru anything like this?
2. Will our credit score be affected (maybe I need to wait to find out why it was cancelled?)?
3. Could it be because they figured out that they can't make money off of us (my wife still has about $60 worth of refunds to cash out)?

Any comments will be appreciated.

[FrugalFish]

I don't know the answers to your questions, but I have the same credit card and do the same thing you do of paying it in full. I've been waiting and wondering (even while the economy looked good) when Citi will find a way to close the account since it is a money losing proposition for them. When it expired a few years back, I expected them to find a reason not to reissue.

With the economic downturn of late and all the credit woes, I wonder how that will ultimately effect the credit card industry- and if that little bone Citi throws me will somehow go away.

I am interested as to what the letter will say, but I'll offer you this advice that was given to me- if you don't like the person you're talking to, or the information you're getting, hang up and call again. Ask to speak to a manager if you still aren't getting anywhere. Keep poking at them for a while to see if you can get some answers. I have to wonder if rep didn't have a clue what was going on and the supposed letter has yet to be conceived. A few months back my mortgage company was suppose to do a task- when I called they couldn't give me any specific information, just that it was done. A few days later I called and got very specific information, because the task hadn't been completed until the day after I called and prodded them.

[rooskers]

I too had a Citibank Dividend Platinum and they wanted to upgrade both my wife and my cards for supposedly all these new great benefits. After reading the details I was getting no extra benefits and instead of getting 3% cashback which I was getting (originally 5% for gas and groceries) they had lowered it to 1% for everything. I found that they had also raised the interest rate on both our cards to a whopping 23% from 12%. I don't really care since I always pay it off every month but still my credit score and wifes are in the low 800's. This was a really easy fix however I went online found a better deal and called up citibank and told them I would like to cancel my card. Citibank rep "sir we have just upgraded your card why would you like to cancel". Well I guess she didn't like the fact that I told her I didn't consider less cash back and a much higher interest rate as being "upgraded". They transfered me to a manager who I also informed of their "upgrades" and he then gave me the address the cards. Can't really blame them though because I was costing them at least $200 dollars a year but even so they made more than that from collecting their percentage from the merchants.

[Saving in So Cal]

It will be interesting to know what the letter says, but my guess is that your card was cancelled automatically because of a preprogrammed fraud prevention protocol. Two missing cards = closed account and no exceptions. I doubt Citi cancelled the card simply to avoid having to give you both a rebate. If that was Citi's motive, why cancel her instead of you. The amount Citi would lose in a gender discrimination claim would pale in comparison the few hundred bucks Citi have to pay you in rebates.

Unfortunately, since CSRs are basically automatons, it will probably be a hassle to work this out. You'll have to decide whether you would be better off trying to work through the system to get the account restore (with a new account number) or to reapply or to get another reward card with someone else.

[rooskers]

Saving in So Cal is probably right however if I were you I would find a different card because the Citibank dividend is no longer the best rebate card out there. I have an HSBC rewards card that pays 5% back on gas and groceries but they are no longer excepting applications for that card. I am sure with a little research on the internet you could find something better than just flat 1%.

[trainedmonkey]

I had this offer also and decided to decline it.

The main reason is I didn't see it as an upgrade and I can't for the life of me understand why they want to go through the hassle of cancelling my existing card, assigning a new number and sending out a different card.
There has to be some advantage to them that I just don't understand (otherwise why spend the money to go through all this just to get another credit card in my hand, anyone have any ideas?)

The fact that on my credit report this would look like 2 accounts, the first being closed or transferred and the second being a new card and the fact that the credit history associated with the first is not transferred to the second was reason enough for me to not accept the new card.

[markusk]

Thank you everyone who replied. I really appreciate this community!

Here is an update.

Yesterday we received our credit card bill -- NOT a cancellation notice with reasons why it was cancelled -- the bill had the transactions before the old Citibank Dividend Platinum Select Card was cancelled. They also tagged on a finance charge for not paying the credit card bil on time.

We called customer service to fight the finance charge. Afterall, we called them multiple times to let them know we were not getting cards/letters/bills from them....to make it a long story short, they are waiving the finance charge and sending my wife a new card!

FrugalFish, I think you are right. CSRs don't know what's really going on. Every single one gave us a different answer.

Meanwhile, we applied for and received today Chase Freedom Visa card. They give between 1-3% cash back on all purchases. I want to thank this website for the link.

We don't plan on using the Citi cards much.

[frugalcollegestudent]

I too have a citicard (mtv U to be exact) and have gone through almost the same thing as you. I log onto my account to pay my bill last week (which I have paid off in full every single time) and it says my access has been denied and a new card has been issued for me. So i call citibank and got some woman in India who informs me that one of the merchants I recently shopped at had their system jepordized and they canceled my card and had sent me a new one roughly two weeks ago. well, two weeks and still no card, I am afraid to call them because I can see whats going to happen.

I'm going to the citibank branch tomorrow to get some real answers.

[y26]

I just received this offer and pretty much everything is the same, my cash back and APR but they are adding

auto rental ins
Lost luggage coverage
conceirge
price prtotection and some other junk i would never use.

As long as my cash back rates do not change I'm ok with it.

[Exile]

Originally Posted by markusk

I need to vent. And I hope it makes sense.

My wife and I each had a Citibank Dividend Platinum Select Card which gave each of us 1% cash back, max of $200/year. We use the card alot, pay everything in full each month. Over the last 3 years, we've collected (together) about $320-350/year.

About 2 months ago, before our move to the West Coast, we get notices that our accounts will be upgraded to Citibank Dividend World Master Card, and 1% cash back will continue. 2 weeks later, I get my new card, so I cancel my old one and activate the new one. My wife does not get her card.

The move went smoothly. We notified everyone of our new address (including Citibank, all by online access) and the post-office to forward our mail. Fine.

2 weeks ago, my wife's Citibank Dividend Platinum Select Card is rejected from Target. No problem, she pays in cash. That night we call customer service and they say the card is cancelled because the new Citibank Dividend World Master Card was sent. It should arrive "in the next few days." We should have asked: who cancelled the card? Why was the old card cancelled? Shouldn't you wait until we activate the new card before cancelling the old? But we didn't ask.

We call back in a few days because the card has not arrived. They tell us that it must be lost in the mail. They cancel that card and will issue a new card with a different account number.

Today, we call customer service again, because 2 weeks had passed, and still no card. The rep asks my wife for the password, last 4 digits of SS#, and the last 2 purchases on the card. She can answer everything but the purchases. I quickly chime in that I can't find the latest statement, and have to turn on the computer and open Quicken (I download all transactions daily) can you wait 1-2 minutes? BUT SHE CAN NOT WAIT. The rep transfers us to the "fraud" department. I now have Quicken open and can recite every transaction from since we opened the account. The fraud department transfers us back to customer service.

It's a different rep.

Me: Did you send the new card?
Rep: Your wife's account was cancelled. You will be notified by mail why it was cancelled in 5-7 days.

Me: [?] So the card was never sent?
Rep: It was sent, but it was returned. Your wife's account is now cancelled. You will be notified by mail why it was cancelled in 5-7 days.

Me: [??] What do you mean the new card was returned? Who returned it?
Rep: We sent you the new card, but you never received it, so it was cancelled. So we sent a second card with a different account number and it was returned. Your wife's account is cancelled. You will be notified by mail why it was cancelled in 5-7 days.

Me: Did you send it to the right address? Who returned it?
Rep: I don't have that information.

Me:[???] Well I know you have the correct address because I'm still getting my Citibank credit card bills. So can you send us another card?
Rep: No. Your wife's account is cancelled. You will be notified by mail why it was cancelled in 5-7 days. If she wants a new card, we can send her an application she can fill out for a new card.

Me:[????] Wait a minute. Was anything charged on the first card that was never received or the second card that was returned?
Rep: No. There were no fraudulent charges. You will be notified by mail why it was cancelled in 5-7 days.

That's about it. For awhile, it felt like an Abbot and Costello's who's on first routine. Then I got frustrated, then angry. I still don't know what happened. I want to cancel my own Citibank credit card to spite them.

Questions:
1. Has anyone gone thru anything like this?
2. Will our credit score be affected (maybe I need to wait to find out why it was cancelled?)?
3. Could it be because they figured out that they can't make money off of us (my wife still has about $60 worth of refunds to cash out)?

Any comments will be appreciated.

I went through a similar situation with getting a debit card replacement due to a case of identity theft (see "Getting your bank or Lender to Back Down"). Markusk, whatever you do, don't cancel your existing credit card. That could negatively affect your credit.

As for getting your situation resolved, I suggest that you escalate your complaint immediately. As you have experienced, service reps are limited in what they can or will do to resolve a complicated problem such as yours. Call Citibank and speak with a customer service supervisor or preferably a manager and demand a new card via overnight mail or at least 2 day delivery. If you encounter resistance, threaten to follow up with a company officer, and then do so if necessary. I wrung a huge concession a couple years ago by following that course of action.

[loanstar]

Originally Posted by rooskers

I too had a Citibank Dividend Platinum and they wanted to upgrade both my wife and my cards for supposedly all these new great benefits. After reading the details I was getting no extra benefits and instead of getting 3% cashback which I was getting (originally 5% for gas and groceries) they had lowered it to 1% for everything. I found that they had also raised the interest rate on both our cards to a whopping 23% from 12%.

They call that an upgrade? i too would have cancelled it immediately!