NEVER let your son or daughter take a student loan from Citibank. They are a highly disreputable company with questionable business practices. They have borderline legal practices for repayment of the loans. THEY HARASS PEOPLE! If you try to pay by paper check via USPS, they play a shell game of sending the check through multiple states for processing, delaying the actual process to increase revenues by then collecting late fees.
If you pay electronically they still delay posting the payments for days, long after the money has been drawn from the payee's bank account. Then they phone multiple times a day, claiming the payment is late! Despite the fact that they are in possession of the funds, they continue the harassing phone calls, sometimes as many as 5 times a day.
If you talk to them they admit you have made the payments but continue the calls until they "post it to the account." When you ask them what they did with the funds that they already drew from your account they have some ridiculous answer that the money is still being moved around, whatever the heck that means. I regret the day my daughter's college ever arranged for her Stafford loan to be funded by Citibank!
Originally, I started paying my daughter's loan early, before it came due. The loans had a 6 month grace period after she graduated. To this day I never received an acceptable explanation as to what they did with that money! They claimed they applied it to "back-end" interest. Basically the first year they applied over 50% of my payments to "interest" on a loan that had less than 5% interest rate! After that, I never tried to make an advance payment, I always pay between the due date and the grace period.
Even if you make an electronic payment ON THE DUE DATE, they call the payment late because it "takes a couple of days for their computers to process the transaction." BTW I am in IT, I know that is a whole lot of "who shot John." They are just playing a shell game with the money to take advantage of the interest float. That is, the money is in their bank for their use, probably earning them interest. At the same time, they did not post it against my daughter's loan, so her loan accrues interest for those days that they then charge her. While it may not seem like a lot on our individual loan, it can really add up on the millions of loans they process.
While they may be acting within the "letter of the law" based on laws that the whole country now knows are so corrupted that we had to have a "bail out" of the banking industry. In fact, since they bought out the Travelers, they have run that company into the ground too!
Personally, I think they are thieves. Too bad they have such lobbying power, our legislature should really pass some laws that better protect the consumer! I am so frustrated, I actually feel like defaulting on the loans. At least then they would be harassing me for just cause. All I can say is, if you have the option to do business with another company when funding your child's education, use the other company!
It is very common these days for homeowners to find themselves in an upside down situation in regards to their homes. We live in the state of Florida where the housing market has been on a continuous roller coaster downhill. 4 years ago my husband and I purchased our first home (a town home). We saw that the housing market was climbing up and up. Being first time buyers, we were afraid that if we didn't get in then, we wouldn't be able to afford a home at all. So we OVERPAID for our home. 2 years ago when the market went down, we saw a good opportunity to buy our second home.
We purchased our second home for more room and more privacy because we were a growing family. We figured we would be able to sell our home and walk away even, not in the hole. Foreclosure after foreclosure and short sales in the town home community, the property value of our home dropped 75%. We currently rent the home out for only the interest of our mortgage. We have an arm on the loan, it is considered an investment property (which is quite comical) so no bank is willing to help us and we can not refinance b/c it is not worth enough of the loan out on it. CitiMortgage has been making 6.5% interest on our loan for the past 4 years.
We have never missed a payment and we would like to do "right" by the community and keep the home in good standing. We lose money every month on the property now and when the principal of the mortgage kicks in, we will not be able to afford the home. This brings me to our problem. All we need Citi to do is lower the interest rate and lock that in for 30 years. With the economy being the way it is, my husband and I can not risk taking a hit on our credit by not paying the mortgage or short selling it. If he were to lose his job and have to get another one, they look at credit and they could decide not to hire him b/c of our financial decisions.
I am so frustrated with Citi b/c they want us to be in trouble with our mortgage before they help us. They would rather us short sale on the property then to help good customers. I do not understand this. With a resolution that seems so easy to fix, why are they not willing? I really need someone who can help, I have called every mortgage company I know and have called all the "help" agencies that Obama put into force for this type of thing, but I get the same answer all the time - you are making payments on time and can afford the payments. Why would anyone help you?
Well our problem will come when our arm expires and principal kicks in, then we will not be able to afford it. That doesn't take a genius to see. So again, what is the big problem of simply adjusting my interest rate? CitiMortgage is unwilling to help their customers and they are eating a huge profit right now. Please do not ever use this company to finance your home. They are bad news.
SOUTH DAKOTA -- Awful - I switched to a new bank and as a result had a snafu with my automatic payments. I made a payment through the online system, online system shows it as paid but started getting a number of phone calls and five separate letters within a two week span over Christmas 2011. Made another payment online once I figured out from multiple calls to their customer service center that the payment had actually not gone through, and that something is wrong with the website's processing of the payments.
I made a new payment shortly thereafter including late fees (which, by the way, are not separately disclosed within the payment), and now I'm getting text messages from Citibank. I verified with the customer sales representative that prior to this incident I had not been late in the three years since I've held these loans. If I had a choice I'd quickly switch to another lender. Citibank Student Loans are terrible.
YOU ARE IN VIOLATION of the Fair Debt Collection Practices Act! Stop calling me when payment has been made!!! AND IS NOT LATE! See # 5 U.S. Fair Debt Collection Practices § 806. Harassment or abuse
A debt collector may not engage in any conduct the natural consequence of which is to harass, oppress, or abuse any person in connection with the collection of a debt. Without limiting the general application of the foregoing, the following conduct is a violation of this section:
(1) The use or threat of use of violence or other criminal means to harm the physical person, reputation, or property of any person; (2) The use of obscene or profane language or language the natural consequence of which is to abuse the hearer or reader; (3) The publication of a list of consumers who allegedly refuse to pay debts, except to a consumer reporting agency or to persons meeting the requirements of section 603(f) or 604(3)1 of this Act;
(4) The advertisement for sale of any debt to coerce payment of the debt; (5) Causing a telephone to ring or engaging any person in telephone conversation repeatedly or continuously with intent to annoy, abuse, or harass any person at the called number; (6) Except as provided in section 804, the placement of telephone calls without meaningful disclosure of the caller's identity.
SOUTH DAKOTA -- Citi Bank bought my student loan from Sun Tech Loans approximately 3 years ago. Since then repayment of this Loan has been Hell.. CITI bank does not apply loan payment per the terms specified within the Prom notes.. Payments on Student loans are supposed to be applied to Principal & Interest equally and any remain funds are supposed to go to advance the due date of the loan.
(Example your loan payment is $158.73 a month you pay $240.00 the extra fund are supposed to automatically advance your next due date into the future if you kept paying $240.00 for a few month you would be advancing the due dates into the future thus giving you the loan holder the ability to skip a payment if you like without becoming past due) CITI bank does not automatically apply payments this way. They don't advance due dates unless you tell them to which is wrong. They also refuse to modify there payment system saying Loan holders need to send in the payment stubs every month or sigh up for their online payment system..
Per the terms of the prom notes signed, loan holder are not required to send in any coupons with payments. You are required to send in your payments with you SS # and acct number on your payment so they can apply payments to your loan that is it..
CITI Bank and other Loan companies are responsible for posting your payments correctly to your loan. You should not have to bend to their payment methods.. Anyone with a CITI Bank loan should review their loans to ensure that their payments are being applied correctly. You could be paying fees and not receiving % discounts you're entitled to. I have not faith in this bank whatsoever and would never give them my business.. This could be grounds for a class action suit. If they aren't applying my payments correctly. I can't be the only one..
Since CITI is not applying payments correctly to these loans they are not technically backed any longer by the government. So if someone were to default on the loans CITI could be left holding the bag as long as the loan holder did not sign a new prom note.
So I had an auto loan through amtrust bank that was recently picked up through citi financial auto. First off, I had to make one of those 8 letter passwords with an uppercase letter, lower case letter, and number. This was the only account I had that needed this kind of password and I forgot it one day. I tried logging in and entered the wrong password I think 3 times and the account was locked and told to call the number. After waiting on hold for 20 minutes, I was told just had to make a new online account. So I did that. It's not that big of a deal and it was my fault that I forgot the password. However, how ridiculous is it to have to make a new account every time?
Onto my biggest gripe. I shouldn't have even bothered to make an online account because it has zero use. I have emailed them 3 times. Yea... no response from any (the most recent one sent out a week ago). You can only make a payment online by ATM card or checking account. Good enough, right? No, it is ONLY through WESTERN UNION and either option has a $14.95 fee. No, this is not my last possible day to pay. No, I don't need same day posting. Kind of odd how my citi credit card allows me to pay my card directly online from my checking account for free yet my auto loan wants to charge me.
Obviously this is done on purpose. With a credit card you can cancel whenever when you are displeased with the service, but you are locked in on the auto loan. Too bad if you don't like it. They are going to allow you to use only the method of payment that is most cost efficient for them. I really wish I could pay it through one of my credit cards online to get rewards points, but I fully understand that they don't want to pay transaction fees.
But to have NO options to be able to pay it freely online? Especially for the largest bank.... I'm not going to cancel my Citi card though, because that is my favorite card. The customer service on that one is great. Just here to vent how displeased I am with this service.
MAYFIELD, MISSOURI -- Last January I was just one day late and was HEAVILY PUNISHED with late fees, astronomically high interest rates and 5 fold increase in my minimum payment. As I taxpayer I bailed their a** out with my tax money but they yet have NO MERCY on me. They act they are doing me a HUGE favor by working with me. I would NEVER recommend anyone getting a Citibank card.
COLORADO -- I had a home equity loan through citibank from 2002-2004. Paid the loan in full in 2004. I am now selling the house and discovered a month ago that they never released the lien on my property. Called and rec'd form to complete to have this process happen. Faxed the form back to them.Today is my closing date and I cannot close because they have not released the lien nor have they faxed me a copy of the Paid in full letter. I have talked to ** employee number **, ** employee # **. I have been told that I would have the information within the day, within the hour, etc..
I have been told that the information is in archives and they are unable to pull up my account, yet when I call their customer service number, I can access my account through the phone. Supposedly they must receive permission by email from another department to do the paid in full letter.Then they have to, and I quote, "find the time to type up the letter."
In the hours and hours I have used talking to them, they could have found the time to type the letter. They can't call one of their own departments? I have a buyer that is trying to close on my house today and we can't because of them. I have proof of received faxes from them from 1 month ago, yet they say they didn't get the request.