Citibank closing hundreds of credit accounts, unannounced

A business decision by Citibank has some experts scratching their heads. An unknown number of credit card accounts, co-branded with oil companies like Shell and Exxon-Mobil, have been closed by the creditor.

After filling up her gas tank, Shannon Burdette was confused when she was told her card had been rejected. AP reports that she called the customer service line on the back of the card, but was told her account was closed because of something that appeared on her credit report. The only negative statement on her report was the notice of closure by the creditor's request.

Citibank's reason for taking action against customers is unknown. The bank's spokesman declined to give an explanation for the massive closure, according to American Banking News.

RawStory.com



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[edit on 20/10/09 by DontTreadOnMe]

This is actually happening with MANY banking institutions that serve the credit card industry. Since the mid point of last year they have been slowly closing and cutting back on credit limits on people all over the US and other countries that they service.
My mother for one has been hit by this current tactic the banks are using to bring down their "bad" debt cost's. She has had AAA credit for MANY years, always paid on time and allowed two cards and one store card to revolve with a slight balance to keep the credit score. Well toward the end of last year around Thanksgiving she was in the store buying things to bring to MY home and they told her the card was rejected. She had this one cards for over TEN YEARS! Then at Christmas same thing with another. Then her credit rating hit the floor. She tried to get a cell phone recently and found out when they told her she could not get it!
This is happening with most of the banks not just Citi and it has been going on for sometime. If they aren't able to close an account they take it from the AAA credit rating of 5-9% interest to up wards of 25-30% in some cases to get the people to close them on their own. Just pay attention to the % of interest on your cards and when it hits the roof pay off what you can fast, they want it closed and have not yet done it.

It is happening at other banks, banks don't have the money to essentially lend for you to use the credit card. So they are cutting and closing accounts. As stated before their where some lines fo credit that where cut or just plain taken away from small business owners because the bank said so. This also says alot about the coming christmas holidays, because if people don't have credit what little cash they have won't be used to buy large ticket items or wait until sales come into being.

I had a card I used to book work flights and rental vehicles. The credit card company sent me a letter saying that because of bad loans they were reducing all clients limits. They dropped mine to 500 from 13k. I cancelled it and they argueed with me about not wanting me to close it and I had to yell at them to get them to close it.