Consumer complaint received 2020-10-06
Company: CITIBANK, N.A.
State: DC
Product: Checking or savings account
Sub-product: Savings account
Issue: Opening an account
Sub-issue: Didn't receive terms that were advertised

Complaint:
Citi failed to provide the advertised bonus ( {$400.00} in my case ) upon satisfying the requirements set forth in both the advertisement and within the Terms and Conditions of the offer. 

Citi Advertised a new account bonus for certain checking / savings account openings with the bonus level depending on the amount of initial funding. I have attached a copy of that offer. 

I am an Eligible consumers as defined in the terms and conditions. 

The requirements for qualifying for the bonus are as follows ( as set forth in the terms and conditions attached ) : Required Activities If Eligible Customers open their eligible accounts by any other means than those described, they will not be enrolled in this Offer and will not be eligible for the Cash Bonus. 
Eligible Customers must : First, open a new consumer regular or interest checking account between XX/XX/XXXX and XX/XX/XXXX in an eligible Account Package listed in the Chart below ( Eligible Checking Account ). Certain Cash Bonus offers also require opening a new Citi Savings Account ( see Chart below ) in the same account package as the new Eligible Checking Account ( Eligible Savings Account ). The Eligible Savings Account must be opened within 30 days after the checking accounts Account Opening Date. 
Second, enroll in this offer at the same time as account opening pursuant to the instructions provided. Customer is automatically enrolled when applying online Third, any owner of the eligible accounts must make at least the Minimum Deposit ( see Chart below ) in New-to-Citibank Funds, within 30 calendar days after the Account Opening Date of the checking account, into either the new Eligible Checking Account and/or the new Eligible Savings Account. Multiple deposits allowed. 
New-to-Citibank Funds are 1 ) funds deposited from external accounts or payees other than Citibank , N.A . and 2 ) must be deposited using domestic ACH transfer, Direct Deposit, checks drawn on banks other than Citibank , N.A . or wire transfer. Cash deposits, Citi Global Transfers, international ACH transfers, and person-to-person transfer services such as XXXX  XXXX, XXXX, XXXX, and XXXX, do not qualify as New-to-Citibank Funds. 
Fourth, the Minimum Deposit ( see Chart below ) must be maintained for 60 consecutive calendar days from the date the Minimum Deposit is met ( Minimum Balance ). The Minimum Balance may be held entirely in one of the Eligible Accounts or across both of the Eligible Accounts. 
Note : If you choose to keep your entire Minimum Balance in one account, any account that maintains a zero balance for 90 days is subject to closure in Citibanks sole discretion. 

I have satisfied each of the four requirements ( statements attached ). 

I applied online and opened both a new interest checking account and savings account online on XX/XX/XXXX, satisfying requirements one and two. I funded those accounts that same day with {$17000.00} using a domestic ACH from a XXXX XXXX checking account, satisfying the third requirement. Finally, I maintained at least {$16000.00} in the accounts for 60 consecutive days ( as seen in the attached statements ), never going below {$16000.00}. I withdrew all of the funds from both accounts and closed the accounts ( so not to be subject to the monthly account fees ) on XX/XX/XXXX, ( 66 days ) in order to use the funds towards a down payment for a condo, satisfying the forth requirement. These four items were all of the requirements, see attached terms and conditions. There was no requirement that the account be maintained for some ~ 150 days ( 60 days plus 90 days for the bonus ). 

I spoke to teller when I closed the account and she informed that because I was not keeping an open Citi account, I would not be eligible for the advertised bonus. I similarly discussed the issue with the online chat agent ( transcript attached ), thinking the teller was mistaken. I was surprised when he told me the same thing. I tried to call Citi but was unable to connect due to long hold times. Both Citi agent said that there is some additional and undisclosed requirement that the consumer must maintain an open account with Citi well beyond the 60 days in order to receive the bonus. This is not a stated requirement and is not otherwise disclosed. This interpretation of the requirements does not appear to be a one-off training issue specific to a given agent, but rather a systemic issue with potential significant XXXX / compliance gaps. 

Section 1030.8 ( a ) of Regulation DD specifically states an advertisement shall not be misleading or inaccurate .... 

Under Citi 's interpretation, it appears there is at least a violation of 12 CFR 1030.8 ( a ) ( 1 ), as shown in the attached advertisement. 

The Dodd-Frank Act prohibits any covered person or service provider from engaging in any unfair, deceptive, abusive act or practice. 

A practice is unfair when it is 1 ) likely to cause substantially injury to consumers, 2 ) is not reasonably avoidable by consumers and 3 ) the substantial injury is not outweighed by countervailing benefits to consumers or competition. 

A practice is deceptive when 1 ) it misleads or is likely to mislead the consumer, 2 ) the consumer 's interpretation is reasonable under the circumstances, and 3 ) the misleading act is material. 

In determining whether the statements were deceptive, it is appropriate to consider how consumers acting reasonably under the circumstances would interpret their meaning. In re Thompson Med. Co., 104 F. T.C. 648, 788 ( XXXX ). 

An interpretation is reasonable if it would be shared by at least a significant minority of reasonable consumers. See In re POM Wonderful, 2013 WL 268926, at *19 ( F.T.C. XXXX XXXX, XXXX ). 

The overall net impression of the advertisement is that consumers would receive the promised bonus if they are 1 ) new consumers, 2 ) who funded the account with new money to Citi, 3 ) for the given funding levels and 4 ) maintained the funds for at least 60 calendar days. Neither the advertisement nor the terms and conditions make a representation or provide for a requirement that the Citi account needs to be opened until receiving the bonus, as a condition of the bonus offered. 

The terms and conditions lists four requirements under required activities, without any additional requirement or specific exclusion. As evidenced in the attached, I satisfied each of the four required activities and expect Citi to uphold its end of the bargain and provide the promised bonus provided as inducement to open the accounts.

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 monetary relief