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Take your $$ out of Citibank - it's NOT safe there
Posted by on
NEW YORK -- have had my Citibank account with NO PROBLEM until 8/3/2010. The last time I used my ATM card was on 8/1/2010 and had a balance of $140. My card was stolen sometime between 8/1 and 8/2, but I didn't notice my card was gone until I attempted to use it on 8/4 which was the same day Citibank Fraud Department left a message for me. A check, for just under $10k, was deposited in my account on 8/3. The signature didn't match mine and it was done at a branch that I have never even been to...miles from home and job. The kicker is that Citibank credited the entire amount of the check. It was another Citibank check made out to me and had all my information on it. How do you walk into a bank like Citibank with a phony Citibank check and have it honored by Citibank?

Somehow the criminals were able to make 3 PIN transactions and purchase $3,000 worth of jewelry, spending a total just under $9k in an hour. Citibank never called to verify this unusual activity. I called the jewelry store with Citibank's Fraud Department on the line and was told that along with my ATM card, the criminal also showed state ID (yet I have my driver's license). I have now a -$6k balance. They are still investigating.

On one of many calls (others were cordial but nothing was being done), I had to call and get loud yesterday while the customer service representative laughed and hung up after having me on hold for 10 minutes while she "checked" my account. Yes, I said laughed. You read correctly. I told her that they could continue their investigation but I needed them to release my paycheck (direct deposit).

They are absolutely no help and talk to you like you are the criminal. You would think they would improve security. In my internet search for "Citibank fraud," my situation is not unusual.

Still waiting for my money, but I have contacted the NYPD (go to a branch and fill out an Affidavit of Fraud or you won't be able to file a police report - Citi doesn't tell you this), FBI, FTC and the Postmaster (criminal purchased money orders). Will be contacting others as soon as I find out who can help.
     
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goduke on 2010-09-02:
I feel for you. Unfortunately, what you describe can happen with any bank, not just with Citi. Best of luck in getting it all sorted out.
Obsfucation on 2010-09-02:
How was someone able to get both your card, and your PIN?
bcd on 2010-09-02:
... and the account number to make the deposit.
LeavingCiti on 2010-09-10:
Getting my card was a stroke of luck for the criminals who must have had inside (Citibank) assistance for the other information. As you can see from this horror story, a card isn't even needed: http://www.deannazandt.com/2009/02/17/citibank-fraud-fail-and-loss-of-faith/

The check wasn't returned for insufficient funds either. This was a blocked/frozen account. Must have already been used for fraudulent activity. This deposit should have instantly raised a red flag for the teller.
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CITIBANK SUCKS!!!!!!!!!!!!
Posted by on
They are the backers of SEARS, I have done business with Sears for over 20 years, but now Citibank decides who is a good customer. I have signed up for paperless statements, and they have advised my account is noted as such, yet they repeatedly send me paper statements?? I also had a situation where I did not receive notice of a payment was due I have never been late with my payments and usually don't carry a balance but when I realized I immediately paid well more than the minimum via online, but it was 2 days past due, Citibank customer service representative stated they could not locate this payment, and adv me to make a phone payment, and tney would reverse the late charge, I did so and found that my checking account was double debited the same funds, when I called them back and requested a refund they told me nothing they could do?? I explained I wish to have extra payment refunded, but they said they don't refund additional payments even though they recognize the error?? have you ever!!! after numerous requests to speak with someone of authority they refused and told me nothing more could be done, I explained to my bank and they reversed the payment with no charge and could not believe I was treated this way. My next bill came due for payment and I have now found they locked my account which will not allow me to pay online?? WHAT?! was this payback for getting my overpayment back, they apologized for error and promised they would fix, this! Well 2 more phone calls and this is yet to be resolved, they now tell me I have to wait 30 days to unlock the account?? WHAT?! They made they error and I have am being penalized for their incompetence!, I am filing a complaint with Sears directly regarding this, and if they do not respond appropriately or timely, I will pay and close my account, ending a good long payment history with a credit worthy customer!!!!
     
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tnchuck100 on 2010-06-21:
The fact of the matter is neither Sears nor Citibank care if you close the account. Most HUGE businesses put their efforts and resources into acquiring NEW customers. Retaining old customers is just not worth much effort. You will probably be better off not having to deal with their uncaring incompetency anyway.
jktshff1 on 2010-06-21:
+10 TN
Buddy01 on 2010-06-22:
In your post there is one option you don't mention that you may not be aware of. You can make your payments on your Sears card in the store. It is quick and easy.
NoMoreBS1 on 2010-06-22:
WOW!! I HATE Citi too!!! they are horrible!!! They have the worst customer service out of any company I have ever done business with!!
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Citimortgage Loan Modification Screwed Me Big Time
Posted by on
9 months ago I decided to call Citibank to try to get a modification on my loan to help lower my payments, even though I wasn't past due they told me I was preapproved my mortgage went from 2700 to 1200 on a 3 month trial basis, they kept saying the same document was missing or not right, I re sent it 5 times, they got me so frustrated but I kept on with it, I paid the lower amount on time and never late, I called every week and was told we have the necessary papers and are in review, it is now 9 months later they said it went to underwriting which is a great sign, then today I get a call that I am denied to modification, because I DON'T HAVE ENOUGH INCOME, YA THAT MAKES A LOT OF SENSE anyway I have to start paying the old amount of 2700, and they said I have to pay the past Amount that they reduced $16000.00 which I don't have the best they will do is spread it over a year, which would mean I have to pay $4800 a month which is ridiculous, so not only have they royally screwed me they also messed up my credit it was 780 when this started now its 600 cause of what they posted so I can't even refinance, they suggest I short sell or foreclose, they are a big help If anyone has a suggestion please email me at chimneygu@aol.com
     
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yoke on 2010-05-27:
You still owe the $16000, did you ask if they could defer the amount over a longer period of time?
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Dissatisfied Citibank Customer
Posted by on
To Whom It May Concern:

I hope this message gets escalated to the highest level of Citibank management possible. You can verify my accounts with Citibank by checking my phone number (973-906-6944).

Currently, I have over 10 different types of services/accounts with Citibank (list below) and I’ve earned over 300,000 points with Thank You network. However, I will not be a loyal customer of Citibank anymore since Citibank has not been treating me right. For the past year, there have been a number of incidents that makes me believe that Citibank does not care about their customers anymore. They are listed below.

I will start migrating all my banking services to other banks. I’ll also make sure to post this message everywhere so other will be aware of how horribly Citibank treat their loyal customers.

BTW, I used to believe in Citi… I currently own more than 20,000 shares of Citi stocks. I will be changing this position going forward.

1 -
This is the tipping point of my dissatisfaction with Citibank.

Today, 2010.05.17, Citi Premier Pass card decided not to honor the credit limit overage usage that is build into my account. The reasons, one, I haven’t been utilizing my credit line nearing my credit limit. Also, I’m not allowed to transfer my credit from one card to another.

2 -
Citibank has been cutting my credit to the minimal - the reason being that I have high revolving debt. However, I’ve never been late with any payments. The high revolving debt is actually used for business investment purposes.

3 -
Citibank decided to close out my Business Checking Line of Credit without any prior notification. This caused me quit a bit of headache since a number of transactions were rejected due to the line of credit not being available.

4 -
Citibank started to charge $10 for automated draft from overdraft protection line of credit. The overdraft protection line of credit is designed to protecting overdraft. Citibank started penalize the automated draft. I have to manually transfer money out of overdraft protection line of credit to checking. What’s the point for having automated overdraft protection line of credit?

5 -
Citibank raised my credit card rates to a whopping 30 percent. Thank god I pay off my complete balance every month. 30 percent is ridiculously high. It’s highway robbery.


Below are my accounts with Citibank

Business Checking
Business Checking Line of Credit
Business Brokerage Account
Business Platinum Select Credit Card
Personal Checking
Personal Savings
Personal Checking Line of Credit
Personal Brokerage Account
Three Personal Credit Cards

Sincerely,


Jerry
(Used to be a loyal customer of Citi)


     
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FlShopper on 2010-05-18:
I would advise you remove your telephone number from your post.
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Citibank disrespects perfectly good customer
Posted by on
We American tax payers bailed out the banks to only be slapped in the face. I am spreading the word out about how Citibank has no respect for their customers nor the Americans who helped bail them out. I'm like a lot of you out there. I work very hard to keep a good Fico score. I pay all of my bills and I pay them on time. Ton make it consistent and easy, my accounts are paid automatically through my bank every month the same time and the same amount. So when I overlooked that my minimum had been increased by $1.63 on my ExxonMobil account owned by Citibank, I had one payment short $1.63. I am not kidding it was less than $2. When I contacted Citibank I was told that CitiBank "assumed" I was having financial problems and that they cut my credit with Exxon in half and made my balance look as if I was close to my limit. This takes a hit to your FICO score because I did not have the 50% ratio to credit anymore. If CitiBank is going to "Assume" and not look at the facts like I have never been late, short or anything less than a good customer then I plan to pay off all my CitiBank accounts and not use them. As it turns out, Conoco Phillips and Home Depot are also under Citibank. If a $1.63 means that much to Citibank to make assumptions instead of looking at the facts of the account, then I am going to "assume" Citibank doesn't care whether I remain a customer or not.
Assume this....Citibank's insult has been "handled" and I paid off the entire balance to the cards and I refuse to listen to anymore of their insinuations or excuses. In addition I am spreading the word about the disrespect Citibank has for their customer who WAS a very good customer who not only used to carry a balance on all three cards and paid the interest but was never paying late or missed a payment or was ever short until they accidentally undered paid an account ONCE for a just $1.63.
     
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tnchuck100 on 2010-05-14:
'I am going to "assume" Citibank doesn't care ...'

That is one thing you need not "assume"; It is a "given". They really don't care. Someday they will but it will be too late then.
goduke on 2010-05-14:
You really think they'll care someday, Chuck?
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Just Another Expendable Customer
Posted by on
I discovered all of these stories AFTER my mom informed me that we had become an unexplained canceled card victim of CitiBank this morning. I knew of their card sharp like practices through situations my mom had encountered since she had a Visa through CitiBank and I had never had more than the oil cards with them. Sadly, I cannot say that over the last six years my family hasn't been a victim of medical hardships that lead to financial chaos both with me and my dad. With that said, Mom gave me her Conoco/Phillips and Shell Cards all that time ago to make certain that I always had availability to a means to put gas into my car since I live about 400 miles away from where I still consider home. I have diligently made the payments to the related CitiBank gas cards on time (I was one day late in February and I paid the late fee with that payment then, too), online where THEY knew in advance that I had scheduled the payment and in excess of the minimum payment during the last six years. My mom received a letter in the mail this week stating that CitiBank had closed the Conoco Card - after they had received the payment on time yet again this month, by the way, - with the explanation of not meeting their credit criteria. Funny how that just happened this year, isn't it?

Fortunately, I wasn't in need of fuel and discovered the fact when the card was declined like some, but to say that we are incensed is the understatement of the year! How much bailout money has CitiBank gotten from the taxpayers? Enough that I favored letting them go under or being taken over by the government since we all know how reckless and cavalier they had been during the same time period with their decision making that I was diligently making my payments to them! I am starting to get my feet back under me from the medical issues that I have faced physically and financially, but there is one thing vividly clear. I WILL NEVER be a customer to CitiBank again and they better start watching their pennies as closely as all of us have had to for so long. My smaller bank has been there for me over the years and green is still accepted everywhere I go. I don't believe there are enough Cadillac customers out there in America to help Citi's bottom line soar again anytime soon. Since there wasn't any government bailout for us, I hope these greedy pieces of garbage don't come with their hands held out again to the American taxpayer anytime soon. No bank is too big to fail, regardless of what these banker types choose to believe in their rarefied air. The ill will they have generated isn't exactly going to make the public at large cry if/when they fall flat on their faces.
     
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GenuineNerd on 2010-03-28:
I often wonder if Citi Cards is going out of the gasoline credit card business, especially considering the sheer number of oil company-co-branded MasterCards and Visas that Citi Cards closed on short notice, even to those with perfect credit, who never went over their credit limit or was never late with a payment. My Shell MasterCard was closed last October without prior warning, I found out the account was closed when I tried to use the card and it was declined, despite having over $1100 in available credit. I called Citi when the card was declined a second time, and was told that my account was closed due to information on my Equifax credit report, which showed nothing negative. I received the notification of my closed account two weeks later. I know that in the months prior to the Credit Card Reform Act taking place, Citi closed thousands of these credit card accounts. Other CC issuers, including Chase and Discover, closed a lot of CC accounts as well. I had a Chase card and a Discover card closed in recent months as well. Fortunately I didn't owe anything on these cards; they were closed due to account inactivity.
skelly39 on 2010-03-29:
They did the same to me and gave me the same vague spiel about my credit. I carried no balance on one and had just had my credit line increased at their initiative on the other. Be glad you are done with them. I still have a loan with them, but when I'm done, you can bet I won't ever deal with Citi again.
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Extraordinary Customer Service
Posted by on
P. O. BOX 6500, SOUTH DAKOTA -- I had dual problems with Citibank that compounded themselves over many months to create something of an issue. It began when I redployed from Iraq, and then had trouble getting statements in the shuffle that followed. When everything caught up, there was clearly a problem. Worse, the normal systems had basically been shut off for resolution.

Not exactly blameless, there definitely appeared to be a extreme case in the records I finally got my hands on. To put it mildly, I was not pleased with the situation and not looking forward to dealing with another credit card company over an issue. In contrast, during a previous deployment, I had a credit card stolen (issued from major telecommunications coporation) in what was both an easy case and bound by very firm federal regulations. Nevertheless, the firm in question refused to follow the regulations, routinely lost information sent to them, at one point was literally threatening me, and only followed the regulations after they were threatened by a government backed lawsuit.

I called Citibank expected just to address the administrative portion of the problem, and deal with the substance of the issue later. However, when the operator asked about the issue and I explained the situation, I was shocked to hear her say that she see could where I was coming from and would help me submit a case into the bank's system for resolution. She then walked me through each portion of the issue helping set each and every aspect of the issue straight, taking pains to ensure that the details were handled correctly. She was polite and professional throughout the interaction.

I called ready to leave the company, but was so impressed with the customer service that I would risk paying greater fees to retain the solid support I got during a potentially difficult situation.

I wish that I had recorded the operator's name for praise here, as the service she gave may quite literally have been the best I have encountered. Hopefully, the company can figure out who it was and pass along the appropriate praise. Again, very, very impressed with how this was handled. Regardless of outcome on initial issue, the stark contrast between the two companies cannot have been greater and I very much appreciate it.
     
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druu on 2009-11-29:
First of all, service members should be treated first-class. Good to hear respect, professionalism, and willingness to help were given to you.

Second, if you haven't already, inquire about the soldiers and sailors relief act. Credit companies will charge you at a reduced rate during times of deployment. With Citi, they actually will give you 0% APR during deployment, no fees of any kind. Proper paperwork is obviously required, but utilize your rights as a service member. Hope this helps, if you haven't done this already.
Ponie on 2009-11-29:
Good review! Thank you for your service so I can sit here fat and sassy in front my monitor.
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Tier One customer has Citi Shell card cancelled
Posted by on
CINCINNATI, OHIO -- So the word is out, Citibank, with Billions of taxpayer's money from the TARP, has decided that long term customer's relationships are not worthwhile and that those with outstanding credit who do the right thing and pay their balances on time and in full are not the customer's they want.

How ridiculous is that? Most financial institutions want the best customer's they can find who pose the least credit risk.

I was so outraged to our Mastercard Shell gas card issued by Citigroup had been canceled that I had to dig further.

I signed up for credit report monitoring through Equifax, the company Citi noted they had referenced when deciding to close my account...costing some $120 annually. I learned, as I suspected, that my credit score is EXCELLENT at 751.

Notably, we have been customers for some 15 plus years dating to when the Shell Mastercard was administered by Chase. My credit report shows we started the card in 1994.

We have always paid the balance in full and one time.

My credit score is 751 as of the date CITI canceled our card....WITHOUT ADVANCE NOTICE OF ANY KIND.

Our Income approaches $400,000 a year this year and has been over $300,000 for the last 10 years....we pay an extra $1500 a month on our house which will be paid off in about 5 years after we refinanced it to a 10 year fixed term earlier this year.

We own our 2008 Audi S5 purchaseed in June of 2008 for $63,000 car outright...we owe just over $24,000 on a new Chevy Tahoe SLT, purchased this summer.

In short, we don't carry balances on credt cards and we don't owe much to anyone.

So what is the problem?

Congress, where are you?

We, as taxpayer's, give credit to large financial institutions only to have them pull credit from their best customers.

If I am not worthy of credit from Citigroup then no one would be.

It's time for your Congressmen to be involved to get the Consumer Fair Credit Act updated.

If you have been a victim of Citi's ridiculous credit decisions, I urge you to cancel all Citi relationships where possible and contact the Congressional representative in your district.

Shell is not without blame either. They have enjoyed our business for 15 years. Like others, we chose to buy gas from Shell for the 5% rebates they offered roughly 70-80% of the time. Now Shell and Citi will get ZERO percent of our business.

Consumer's unite...BOYCOT SHELL...BOYCOT CITIGROUP
     
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warddw1526 on 2009-10-28:
As far as Citi, they cancelled your account because you are not paying them anything. As you said, you pay your bill in full every time. You are not paying any interest to them, so you are not a profitable customer for them.
Slimjim on 2009-10-28:
While that is true ward, Citi does enjoy a cut of the merchant fees when the poster uses it. It's nothing like the profit from finance charges , but then again, there is an evidence of a very low credit risk by someone who always has the resources to pay everything up each month and then some. I can understand the poster being disturb. It's getting so no one knows what's going to happen to their credit lines at any given day. What certainly should be done is intruding the practice of not considering it a negative credit issue if someone has limits lowered/closed not resulting from a default.
Anonymous on 2009-10-28:
Credit is not an entitlement. If they choose not to do business with you, that is their right, just as it is your right to choose to not do business with them. Just go someplace else, it doesn't have to be such a bitter divorce.
Anonymous on 2009-10-28:
Credit is a privilege not a right. If they want to take it back for whatever reason, they can. If they're not making any money from you, why would they want to keep you as a customer?
lobo65 on 2009-10-28:
It would never bother me if one of the big banks closed one of my cards. My credit score is great, and I would have no problem getting approved for another one through a credit union (which by the way I have).
skelly39 on 2009-10-28:
You make a boatload of money. You don't need their dumb card. Be happy you are rid of it.
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Deal Pulled Right Near The End
Posted by on
DALLAS, TEXAS -- I was sent a settlement statement for my Citibank account, because I had fallen behind on payment. I called and made the agreement on 10/08/08. My outstanding balance was 1961.88. They reduced it to 843.61 as a settlement offer. It was agreed I pay $100 on that day, the next payment was 67.61, and 67.60 thereafter. I even made payments for more than the amount I needed to. February 100, March 70, April 70. The last time I called was in May to pay my next payment. I asked the girl what the current amount was, she told me that after making my May payment that my amount would be $300.81. I told her I was going to make the regular payment and that I would pay off the rest the balance next month.

I had always used my debit card to make my payments with no problems. The girl said that she couldn't do it because her system wouldn't let her. She said she could take a check over the phone. So that is what we did. Then at the end of May I get a letter in the mail from a collection agency For the Citibank account. I had only owed 300.81 more on the account for Citibank. But collections wants 1500. I called Citibank and they told me they no longer have any information on my account, because it had been sent to collections. I checked my bank statement when I got it on June 05 and the check #258 that I gave them the numbers for, was not there. Somebody screwed up and didn't put it through. Now I owe even more than when this all began, because somebody didn't follow through.

I can provide proof that I paid Citibank faithfully every month and a lot of them more than the agreement of the 67.60. I can also show that my bank statements skip over the check number I gave them, but..because their system voids all accounts that are sent to collection they couldn't check to see when my account was last accessed..which could prove that I did call.
     
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Slimjim on 2009-06-06:
Well it sounds like you just saved yourself $300 because I wouldn't give the collection agency another dime. Your credit is shot anyway and they won't sue you for that amount (99% probably). When the collectors call, make sure you tell them the story except leave out the part where you know the check wasn't cashed. They'll log it in and it may tend to make them less active in their collection activities since they figure you got screwed and no way will ever pay up now.
Soaring Consumer on 2009-06-06:
I also recommend you send that in certified mail as your letter of dispute.

VH Slimjim.
madconsumer on 2009-06-07:
the important thing is, do you have proof of the settlement in writting?
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Banks Are Exploiting A Loophole To Scam Customers With "Foreign Transaction Fees"
Posted by on
When a customer makes a purchase based in the country, usually with a foreign currency, the customer is charged a Foreign Transaction Fee, usually around 2% of the value of the transaction. This is a normal, expected fee.

However, a loophole in the Credit Card Accountability Responsibility and Disclosure Act of 2009 inadvertently lacks the regulation of these Foreign Transaction Fees. While the bill mentions strict regulation against Currency Exchange Fees, companies are now categorizing them as Foreign Transaction Fees, making them immune to the Act. This is now being exploited by companies such as Bank of America, CitiBank, and Discover Card, as well as some others that charge these fees.

Companies are now starting to charge these fees to customer's credit cards at inappropriate times for inexistent reasons when there is no reason that these fees should be posted.

The purpose of the Currency Exchange Fee is to cover the bank's cost of converting foreign currency into the native currency, such as a transaction in Euros into Dollars.

However, banks are taking advantage of this new categorization by charging fees on out-of-country purchases charged in the native currency, citing that they are "foreign purchases." Despite that the bank had no role in converting the currency nor suffered financial penalty, the fee still applied as it was a foreign purchase.

Furthermore, banks are now charging customers Foreign Transaction Fees on US-based purchases. From the blog of Christopher Elliott, a CitiBank customer purchased Qatar Airways tickets through Expedia, a US-based company. The tickets were processed through Qatar's US-based office. Yet, CitiBank still charged the customer a $44 Foreign Transaction Fee, simply on the premise that Qatar Airways is based in a foreign country.

http://www.elliott.org/blog/the-foreign-transaction-fee-nightmare-continues-and-you-could-be-next/

This is the scam that has the potential to impact all of us, customers that use these cards. Even if the purchase was made in the US with US-based divisions and processed in the US, if the parent company is foreign, they will still charge Foreign Transaction Fees, which they will absolutely refuse to remove. And they can legally get away with this now, through this loophole in the Credit Card Accountability Responsibility and Disclosure Act of 2009.
     
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Anonymous on 2009-06-05:
This is absolutely not an exploit. The banks are being charged these fees by the EFT switch, all they are doing is passing them on. If a bank is upcharging this fee, that would be a different issue, but to pass along the fee that they themselves are charged is good business practice.

In the systems I see, that fee is passed as a separate transaction and posts directly to the account. The bank themselves, never touches it.
tnchuck100 on 2009-06-05:
"...Disclosure Act of 2009 inadvertently lacks the regulation of these Foreign Transaction Fees."

Soaring, do you REALLY think it was inadvertent? Truth be known it was probably deliberate due to pressure from the banking lobbyists.

Just one more way to stick it to their customers. (VH)
BokiBean on 2009-06-05:
"Since February, Discover, Citigroup, Simmons and Bank of America expanded their fees, according to Bill Hardekopf of LowCards.com. Prior to this change the 3% fee was charged primarily when you traveled and bought something outside the country. With the new rules the foreign transaction fee now includes all transactions made or processed outside of the United States."

http://www.walletpop.com/blog/2009/05/13/credit-card-issuers-broadening-foreign-transaction-fees/

That is ALL transactions made or processed outside of the US.

"This year, Discover Financial Services added a 2 percent fee for transactions made in foreign currencies. And Citigroup Inc. and Bank of America Corp. will charge 3 percent on all transactions outside the U.S., even those made in dollars."

http://www.google.com/hostednews/ap/article/ALeqM5jnlLpOVfm9twAhW1ESvmmGGlLrugD98ARM400


BokiBean on 2009-06-05:
Nice info, Soaring!
Anonymous on 2009-06-06:
Consider this, in the past Expedia paid the fee when they transferred funds to pay for foreign transactions. Then they get smart, and just pass the account info to Qatar and let the airline charge the account, thereby shifting the fee from themselves to the customer. I don't have any inside information about Expedia, but I can tell you with certainty that these fees are not new, and are originated by the switch, not the bank.
Soaring Consumer on 2009-06-06:
There was no foreign transaction!

The fee was generated by CitiBank itself, not Expedia, not by Qatar Airways, and there was no reason that the bank would have been charged anything related to a foreign transaction/currency exchange as the transaction was processed in its entirety in the United States.
Anonymous on 2009-06-06:
I don't know this, and you don't know this. You have third party information. What is the bank's side of this story? Don't you think we should get both sides?
Soaring Consumer on 2009-06-06:
According to the link the bank's argument is "Qatar Air is foreign airline, hence there is foreign transaction fee."

That is the problem right there.
Soaring Consumer on 2009-06-05:
The exploit here is when banks are not charged any type of fee but they charge the customer one anyway despite there should be no reason to do so.
Anonymous on 2009-06-05:
Can you present an example of that happening? On a typical transaction, it all happens electronically unless there is a problem. How would the bank know where the transaction originated unless they manually scanned the description on every one, and even then it wouldn't necessarily indicate a foreign source.

The only thing that has changed is that at one time the banks ate these fees. They stopped doing that. Even my credit union passes these fees on now.

Soaring Consumer on 2009-06-05:
There is an example in my review, along with a link.

There should be no reason why the Expedia customer should be charged a Foreign Transaction Fee - it is a case of CitiBank taking advantage of the loophole.
Anonymous on 2009-06-05:
You don't know that the bank charged the fee. You would have to see the actual transmission of the electronic item to see where the fee originated. I can't speak to Citi or BoA, but I can assure you that every single Foreign Fee I have ever seen was generated by the EFT switch, not the bank.

If they really are doing this, them yes, they should be smaked down, but it has yet to be proven.
Soaring Consumer on 2009-06-05:
Agreed Ken. The only reason the customer should be charged is if the bank is charged.

However now it appears that banks are charging customers these fees just because they can, probably to substitute for the revenue they anticipate losing when overdraft fees are properly regulated.

After all I doubt that CitiBank would be charged an EFT fee when an American buys something from Expedia.
Slimjim on 2009-06-05:
The link is to some guy named Elliot's blog of what appears to be a third party relay of some encounter. How do we know he even knows what he is talking about?
Here is something else I'd like to say and I'll do it directly off this statement.
"banks are charging customers these fees just because they can,"
And?? They are providing a service and expect to be compensated. Can an argument be made that the pricing is unreasonable? Maybe, but certainly not a scam by definition. Can one use anther bank if so besides Citibank or Discover? Sure.
Soaring Consumer on 2009-06-05:
Christopher Elliott knows exactly what he is talking about, he is the ombudsman for National Geographic's Traveller magazine, and a well known travel troubleshooter.

Of course the banks expect to be compensated for services provided (that is what interest is for) but through a fraudulent Foreign Transaction Fee when there was nothing foreign about the transaction except the airline he booked the ticket with (which shouldn't matter since he bought it through Expedia) is wrong and seems like a scam. And it appears this may only be the beginning.

Not all banks are doing this though, of course.
Anonymous on 2009-06-05:
I got to side with Soaring Consumer on this one. He's seems to have his facts straight.
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