Consumer complaint received 2021-03-14
Company: CITIBANK, N.A.
State: FL
Product: Credit card or prepaid card
Sub-product: General-purpose credit card or charge card
Issue: Trouble using your card
Sub-issue: Credit card company won't increase or decrease your credit limit

Complaint:
CitiBank solicited me with a XXXX interest balance transfer. I took the offer and have made payments on time for over a year and have not charged anything else on the card. Im just doing the responsible thing and paying off the balance while it is still interest free. 

The limit they gave me was {$9200.00} and I owe XXXX. Ive paid on time, not only Citi but all my creditors. I have a 100 % payment history with all creditors, car loan, etc. and I dont use more than 30 % of my available credit. Im doing all the right things and being responsible. Im trying to get a mortgage. 

For no reason whatsoever, Cit reduced my limit from {$9200.00} down to what the balance is on the card, so it now appears as if Ive used 97 % of the my available credit on the card. Because of this, it now shows my overall available credit usage at 31 % because they reduced the limit. 

It caused my score to go from XXXX ( good ) to XXXX XXXX fair ) all because they decreased my limit. A 28 point score drop!!! And not because I did anything wrong. Ive tried discussing this with them and they cant really give me an answer other than they review accounts periodically and Citi made the decision to do this and contacting the credit reporting agency wont help. It was Citis decision.

Their decision has ruined me. Im trying to purchase a home and this is devastating to my credit score. 

This absolutely should be illegal. They should not have this much power over consumers and our financial well being. I did everything that is suggested. Paying all bills and creditors on time always. Keep the usage under 30 %. Ive consistently paid down this card and always pay on time. 

Im hoping you use this information to help stop this. Its almost like predatory lending. They XXXX you in with an interest free balance transfer and then when they see they are not making any money off you, they reduce the limit when they see youre not using it all - which reduces your score drastically because the reporting agency sees it as you maxed out a credit card. I didnt use all the credit they gave me. And its interest free. I think they bank in consumers using more of the credit they extend so they make more interest when the interest free period expires. They arent making much off of me because I am paying it off. I kept it at a responsible balance. 

THE GOVERNMENT NEED TO LOOK AT THIS SERIOUSLY and how giving them the power to reduce a limit DEVASTATES consumers credit score. Maybe the credit reporting agencies should not reduce the score if they see that a consumer has never been late or has not used anywhere near the credit limit that was given.

I dont know who else I can contact at Citi. Ive tried calling several time and get transferred and have even been disconnected after being on hold for 40 minutes. The customer service reps that I have spoken to do not have the power or authority to do anything anyway. 

Im now faced with taking out a loan to pay down the {$2700.00} balance so thats its under 30 %. Only taking out a loan to do this isnt very responsible. But hopefully my score will increase once I pay it down under 30 %. I would highly recommend NOT DOING BUSINESS WITH CITI BANK.

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