Citizensbank Complaint - Deceptive business practices
CRANSTON, RHODE ISLAND -- Citizens bank convinced me to use their Platinum Credit Card. My complaint requires some basic understanding of how credit reporting and credit worthiness works. I had the card along with others for almost 3 years and used it often with a $30,000 credit limit. I never missed a payment and had nearly an 800 credit score. My issue started when I had charged $16,000. I paid off $12,000 in 6 months leaving a balance of just under $4,000. One payment was paid late do to an admitted error with Citizens Bank Checking. An admitted error ! After paying off $12,000 of $16,000 in 6 months, the late payment which was 1 day late caused Citizens bank to "re-evaluate" my credit worthiness. Why was it one day late you may ask ? I pay everything two months in advance to avoid missing anything. After years of this policy I had this one slip through though it was an admitted mistake by the bank. The Citizens Credit Department took my available credit and adjusted it from 30,000 to less than the balanced owed. This effectively did three things... lowered my available credit, increased my debt to credit ratio and reported a major account as being over drafted. This in effect triggered a cascade effect with all other creditors who effectively did the same. Over the course of 10 days my score went from near perfect to really bad. To be fair to this forum and process, I had made a purchase of a home two years prior but my credit score had rebounded by the time this incident took place. Citizens bank response when I informed them that it was ilegal to lower a credit limit to below an amount owed was to keep charging me late and overdraft fees until the balance was lower. The kicker is if you close the account... your score drops even more. The really funny part is when you call the bank they completely remove themselves from any affiliation with the Credit Card division and forgo any responsibility what so ever. I took my money out and put it in a local credit union. Not only did they give me a better rate on a car, they are just so pleasant to deal with. Final thought... that comercial where they open a door for a customer early.... it is B. S.! It has happened several times where I show up 5 minutes early and the guy states "I cannot open its a security issue !" Go figure.