Consumer complaint received 2023-01-06
Company: CITIBANK, N.A.
State: NV
Product: Credit card or prepaid card
Sub-product: General-purpose credit card or charge card
Issue: Closing your account
Sub-issue: Company closed your account

Complaint:
On or about late XXXX of XXXX, Citi bank closed my 3 accounts without prior notice or without explanation. This was done just days after an unrelated 60 day delinquency appeared on my credit report and a third bank also closed my accounts. I believe these are related events, however I have no way of knowing as Citi will not disclose the reason for their actions. 
Under Regulation B for business and consumer accounts as well as FCRA rules governing consumer accounts, a notice of adverse action must be given that provides, among other things, either a statement of the specific reasons for the action taken or a disclosure of the applicants right to a statement of specific reasons and the name, address, and telephone number of the person or office from which this information can be obtained. 
Under the requirements, adverse action includes " A termination of an account or an unfavorable change in the terms of an account that does not affect all or substantially all of a class of the creditors accounts ''. I reached out to Citi as I was told I could contact them within 60 days of the letter ( which did not include a XXXX ) in regards to this matter, but was not provided with a reason. Given the fact that this action was taken only weeks after an unrelated account was reported as 60 days late to the three major credit bureaus, and another bank closed my accounts, I have always suspected that this was the reason for the adverse action. However, given the fact that I did not receive a notice of adverse action that was required, providing me with that information along with : - Notice that adverse action was taken based on information obtained from a consumer reporting agency - The consumers right to : Obtain a free copy of his or her consumer report from the consumer reporting agency providing the information if requested within 60 days and - To dispute the accuracy or completeness of any information in a consumer report furnished by the consumer reporting agency - The name, address, and telephone number of the consumer reporting agency that furnished the report to the person - A statement that the consumer reporting agency did not make the credit decision and is unable to provide to the consumer the specific reasons why the adverse action was taken - Credit score disclosures if the credit score was a factor in taking adverse action Since it's reasonable to assume based on both the timing of the unrelated account closure and the reporting of the 60 day delinquency by another creditor being within days of the account closures, this decision to close 3 separate accounts that were in good standing could have no other explanation besides information contained within my credit report. As such, appropriate notices under the law were required.

As a consumer, financial and credit literacy are extremely important. Getting to the bottom of the reason this decision was made is extremely important to me.

Company public response: Company has responded to the consumer and the CFPB and chooses not to provide a public response
Company response to consumer: Closed with explanation