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Citibank N A (Shell Mastercard) Complaint - Account closed suddenly without notice - Citi Shell Mastercard

Citi Shell Mastercard - Complaint
Review by GenuineNerd on 2009-10-17
SIOUX FALLS, SOUTH DAKOTA -- I have a Shell Mastercard from Citi. Yesterday I attempted to use it at a Big Boy restaurant to pay for my meal, and the card was declined. I was puzzled, since I still had over $1100 left on that card's credit limit, and that I was never late with a payment, never went over my limit, and often paid more than the minimum payment on that card. I first assumed it was a computer problem with the restaurant's cash register, so I attempted to use the card again today, this time at a Big Lots. Again the card was declined. I then called Shell Mastercard, and was told that my account was closed due to something that was on my Equifax credit report. I then pulled up all 3 of my credit reports (Equifax, Experian, and Trans Union), and found nothing negative on any of my credit reports. Ironically, Equifax was the only one of the three that still listed the Citi Shell account as open. Experian and Trans Union listed the Shell account as "closed at card issuer's request". Because I have always been good at managing my credit card and other accounts on time, I took this account closure as a shock. My other concerns are that Citi will charge overlimit fees and/or ask me to pay the $6000+ I owe in one lump sum. I do have a Visa with another bank that I can transfer the balance to if need be, but I would prefer to work something out with Citi Cards, possibly by paying a fixed amount per month until the balance is paid in full.

Apparently I'm not the only one in this predicament. I went to the FatWallet.com forum and noticed that several other Citi Shell Mastercard customers had their cards declined and accounts closed as well. I also wonder if Citibank NA and Shell Oil are discontinuing the Shell Mastercard program, considering the sheer number of closed accounts, which I heard were in the thousands. Most of the other Fat Wallet posters mentioned the reason for their accounts being closed is due to something from their Equifax reports as well. Citi Cards is giving their Shell Mastercard customers a lame excuse for closing thousands of credit card accounts, the majority of them in good standing. If a class action lawsuit is being considered over Citibank NA's actions over their Shell Mastercard customers, I would definitely be one of the plaintiffs.
Comments:
Posted by Anonymous on 2009-10-17:
Just as credit is a privilege, it can be revoked at any time. Sad but true.
Posted by GenuineNerd on 2009-10-20:
Link to MSNBC article about Citibank closing thousands of Mastercard accounts tied to oil companies:

http://www.msnbc.msn.com/id/33388210/ns/business-consumer_news/
Posted by Nohandle on 2009-10-20:
I read that same article today on MSNBC. I don't think anyone understands what's going on. Any CC company can probably close an account at their choosing but I would certainly hate to find myself in another area depending on a CC to then discover the account had been closed with no advance warning. Thanks for the heads up. I don't have that particular card but I expect a number of other members do.
Posted by prkr on 2009-10-21:
I know it sucks that the account was closed but dont worry about having to pay the balance in full.You will still be able to pay it down monthy and as long as your finance charges do not place the account over the limit then there would be no addtional fees.
Posted by GenuineNerd on 2009-10-23:
I received my letter from Citibank today, the 23rd. The letter was dated the 15th. The reason for my account being closed is, according to the letter, "Ratio of revolving balances to credit limits too high". The Citibank letter also said, "Our review was processed by a credit scoring system that assigned a numerical value to various items on your account(s) with us and your credit report."

I wonder if others received similarly-worded letters with similar reasons for their accounts being closed.

At least I can still make monthly payments, hopefully at my present interest rate of 18.9%, until the account is paid in full. If Citibank raises my interest rate, I do plan to transfer the balance to a lower-interest Visa I have, but I prefer to pay Citi off at this point, to keep whatever available credit I have open, thus keeping my FICO score within acceptable range.
Posted by Giraffe on 2009-10-29:
The same thing happened to me! I pay in full each month and never late or over my limit! The excuse they gave me is just that an excuse or lie. When I talked to a supervisor she said my credit acore does not meet their new parameters. I asked what the parameters are & she doesn't know and I can't be informed. How can I fit into the parameters when They won't tell me. The real deal is I don't make Citi money. Why do they have to make excuses. The same happened to my Mom. Yea if there is a case, I want to be involved. The sad thing is I always recommended this shell card to everyone. What a joke! Maybe now that my credit score has been wounded by them I will fit the mystery credit score parameters!
Posted by Desert_Mutt on 2009-12-01:
Walmart's card did the same thing to me. Had used it monthly and then would pay it off after I got paid. Received a letter in the mail one day that said my credit was reduced to $100.00.

They are actually doing us a favor in a way. If they don't extend us credit at their stores, we only pay for what we need.

I have cut my consumption quite a bit. I used to spend a lot of money on dumb things because of the easy credit.
Posted by voiceoff on 2010-02-03:
They do not like huge balances as they think sooner or later you will go to CCC and stop payments.

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