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Citibank Complaint - 0 % Balance Transfer - Buyer Beware! - Mastercard

Mastercard - Complaint
Review by schmelzer.bob67 on 2011-10-20
NEW YORK, NEW YORK -- Citibank offers a 0% balance transfer for up to 6 months with a tranfer fee of 3% that gets rolled into the total transfer amount. This is fine and fully understandable. One vaveat, going forward, the normal grace period applied to standard purchases no longer applies. If you use the card for what they refer to as standard purchases those charges will automatically start accruing interest at your standard APR from date of purchase! I incorrectly thought that if the standard purchases are paid in full each month plus the minimum amount due on the balance transfer, then there would be no interest at statement date. I complained about this and Citi did reimburse the interest charges so I thought we were done. I get my statment today and there is a .50 fee called "minimum charge" fee. I called up and was told it was just "residual" interest from the prior month (on the amount they had reimbursed!) I was then told there would be no more fees going forward (we'll see). In my case these amounts are miniscule but it is the principle that concerns me. What about the person who makes substantial standard purchases and they get slammed with huge interest charges and fees? I am a big believer in personal responsibiltiy, buyer beware etc. but this offer of 0% on balance transfers should include a better description of the terms and conditions. Word of caution, this will work for you, just do not make any additional purchases (standard purchases) with the card. Put it away until you have paid the transfer balance in full. I recently went back to the fine print and found the disclaimer that states that the grace period "may" no longer apply. Always call before signing up and have a list of questions to ask before you commit.
Comments:
Posted by trmn8r on 2011-10-20:
I wrote here months ago about 0% checks with NO FEE at my credit card bank. It caught my eye because it appeared to be totally free, which is the only way I use my CC account (always pay balance).

I called them and found out it was similar to your situation - once that offer is used, other purchases start incurring interest charges. I ripped up the checks and threw them away.

Anytime a bank tells you it is giving you something at 0%, look at the fine print very carefully. In 99.6% of cases they aren't. Banks don't make money lending at 0%. Good post.
Posted by ann on 2012-05-24:
I am a big believer in personal responsibiltiy, buyer beware etc.

The offer plus your credit card agreement both state that if you do a balance transfer you give up the grace period on purchases. If you are really a big believer in personal responsibiltiy then you would have read it and already new ahead of time.

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