Consumer complaint received 2018-11-22
Company: CITIBANK, N.A.
State: VA
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:
Consumer Financial Protection Bureau, On XX/XX/2018 I received a report from my XXXX credit management account that my credit details had changed ; XXXX noted that my 18 year old credit card account with XXXX ( Account # XXXX ) had suddenly closed without warning. This was a credit card account I had been actively using every month, used less than 1 % of the extended credit ( {$13000.00} ), and faithfully paid off the balance every month. The XX/XX/2018 paper billing statement ( attached to this as a PDF ) from the credit card company XXXX mailed to me ( statement date XX/XX/2018 due on XX/XX/2018 ) said nothing of closing the account or needing to extend the account date.

I called the number on the XXXX credit card ( XXXX ) for further information. After verifying my account, I was told my credit account was closed due to returned mail concerning renewing the account.

I never received an e-mail or a phone call to verify the return to sender mail and I was still receiving their same monthly paper billing statement in the mail as I did every month ( it wasnt being returned to them and it had the exact same mailing address they had on file ).

The expiration date on the card was XX/XX/2018 and I asked if we could simply reinstate the account, but I was told emphatically that it was impossible to do so and the ONLY way to continue doing business with XXXX was to open and reestablish a new credit card account.

I escalated my concerns and spoke to a manager, but he replied with the same excuse ; the account was closed ONLY because they received back the letter ( return to sender ) they had sent to extend the account. The manager then said he could send a letter stating the same. My reply was how would he know if that letter would even make it to me in the mail or get returned? He agreed and I explained to him how ludicrous the situation was, what my credit concerns were and the fact that I would report this to the Consumer Financial Protection Bureau. I even asked how could an 18 year old credit account be closed due to something as petty as returned mail without some kind of human oversight ; ( I am a retired XXXX XXXX   of a small XXXX company ) meaning no business I know or operated would think about closing an active, 18 year old account with NO derogatory actions without reviewing it first especially if there were no way to reverse the action. My concerns with the above are twofold : 1. I have just lost an 18 year old credit account on my credit file. I am XXXX years old and had three long term open credit accounts ( 15+ years each ), maintain a low to mid 800 FICO with all three credit reporting companies, paid off my prior mortgages, no car payment, have no other debts and pay every credit account in full every month. Now I only have two active accounts in my credit file.

Lose - Lose Situation With My Credit a. Closing the account will adversely affect my credit ratings, lower my FICO scores which will cost me money and individual negotiating power via higher APR rates and less attractive loan level pricing adjustments/credit offers in the future ( according to all three credit reporting companies ).

b. Opening a new account to reestablish business with XXXX credit card company will also adversely affect my credit ratings, lower my FICO scores which will cost me money and individual negotiating power via higher APR rates and less attractive loan level pricing adjustments/credit offers in the future ( according to all three credit reporting companies ).

2. They closed my account, all the while continued to send monthly paper billing statements with no warnings of account closure/account renewal and I didnt violate any of the terms of my account. I would certainly understand closing the account if I violated the terms we had agreed to ; late payment/no payment, inactive account, over extend credit, etc. But, in this case I did nothing wrong.

It seems as if they wanted to open a new account with a dubious industry close and switch tactic so they can change the rate and terms to favor them better in the 10 pages of new fine print. Obviously, thats difficult to prove from where I sit, but it seems as the only likely motive for closing such a long standing account without human oversight.

I understand other citizens have more important situations and there is nothing you can do to reinstate the account, but I feel I have a legitimate complaint about this financial giants industry tactics and would like them noted in the public record somewhere and have this information sent from your bureau over to a complaint review board/executive process at XXXX for their review ; if it ever would make it that far or ever get the attention it deserves.

Thank you for your help with this matter.

Cordially, XXXX XXXX.

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