Citibank N A Complaint - Lying and Stealing - Credit Card Settlement Agreement

Posted by justcuz on 2010-09-17:

Ok..it's not fair to assume the OP spent more than they had, we don't know why the balance is as high as it is, it could have been for something unexpected. It does happen.

That said, this review doesn't make sense. If your payment was refunded, why did they then add it to your balance? That's not a refund, that's theft. Also, if you have written documentation outlining the terms and conditions of the payment plan and agreed payoff amount, dispute it. You'll win.

Posted by Slimjim on 2010-09-17:

Sounds like Citi just bungled the whole thing. I'm thinking Citi isn't going to see much in the way of any payments for their prize.

Posted by leet60 on 2010-09-17:

If you truly have a copy of the agreement in writing, hold them to it. Be very cautious of these agreements as there are several drawbacks. #1. Any amount they settle for that is less than the actual balance is usually reported to the IRS as income - you have to pay taxes on this. #2. Unless SPECIFICALLY written in the agreement the creditor is not prohibited from selling the remainder of the debt to a collection agency that will then hound you to death for it. #3. It is a BIG negative on your credit rating to "settle" a debt.

Posted by Eaj on 2011-07-20:

I was on a payment plan with Citi and could no longer make the payments so I cancelled the payment plan. Citi proceeded to go into my checking acct and still take out the payment AFTER the plan was canceled. After a month back n forth with them to get my money refunded, they sent me a check which I cashed. One week later, I get a letter stating they are putting a stop payment on the check (no reason given) and applying the money back to my credit card acct until they further review my acct (which is overdue as I'm going thru a bankruptcy at the moment). My issue is that I canceled my payment plan with them and they still went into my acct with no authorization and STOLE my money and are refusing to give it back. I will now have a -$200 balance in my acct if the stop payment goes thru before I can close my bank acct (which is a new one as I had to close my old acct to avoid them going in and stealing more money!) Citibank is pure EVIL!

Posted by Jane Doe on 2012-05-29:

Citi is good about saying one thing over the phone and doing something completely different. I was on a payment plan and was told I would not be able to use my card for six months, which was fine, since I was not using it anyway. I had to go out of town and was denied at the car rental agency because, Citi closed my account. I called the next day, they refused to reopen it. I was told that I was more than welcomed to apply for a new account, but I would not get approved. I hate citi, I will never do business with them even if they are the only bank in town.