Consumer complaint received 2025-10-20 00:00:00
Product: Credit card — General-purpose credit card or charge card
Issue: Trouble using your card — Can't use card to make purchases
Company: CITIBANK, N.A.
State: CA

Complaint narrative:
I am writing to file a formal complaint against Citibank for practices related to my Citi XXXX XXXX credit card that I believe are unfair, deceptive, and potentially discriminatory. 

1. Chronology of Events and Unfair Account Restriction : On or about XX/XX/2025, I was approved for a Citi XXXX XXXX credit card based on a pre-approval invitation from Citibank. 
The following day, Citibank placed a restrictive hold on my account without providing a valid reason. I was asked to submit a IRS Form 4506-C to verify my identity and income. 
I complied and submitted the requested form via USPS with tracking. Tracking confirmation shows Citibank received the document, yet they claimed non-receipt. I was forced to send the form a second time. 
After the second submission, a Citibank representative confirmed they had received the first form but instructed me to " have patience '' and wait for an indefinite processing period. I have retained proof of all mailings and recorded my conversations with representatives. 
As of today, my account remains restricted, preventing me from using the card I was approved for. 

2. Deceptive Marketing and the " Welcome Bonus '' Scam : A primary reason I applied for this card was the marketed offer of XXXX bonus points after spending {$6000.00} within the first three months of account opening. 
By imposing an immediate and prolonged restriction on my account, Citibank has made it impossible for me to meet the spending requirement to earn the promised bonus. This practice renders the marketing offer a deceptive " bait-and-switch ''. Customers are lured with a valuable incentive, only to be systematically blocked from achieving it due to the bank 's internal verification processes. 

3. Charging Fees for a Non-Functional Service : Despite the account being restricted and the card unusable, Citibank has charged me the full {$590.00} annual fee. 
I am now being required to make minimum payments on an account that is frozen, for a service ( the credit card ) that I can not access. This is a clear case of being charged a fee for a product that is not rendered. 

4. Widespread Pattern and Potential Discrimination : My situation is not isolated. There is significant evidence in public forums, including XXXX, and news reports from outlets like The XXXX XXXX XXXX, detailing that many customers have faced identical issues with the Citi XXXX XXXX card, including sudden restrictions and problems with Form 4506-C verification. 
I have observed that a significant number of affected customers, including myself, do not have native American names. This pattern causes me to feel that Citibank 's practices may involve discriminatory treatment based on national origin or ethnicity. 

Evidence of a Systemic Issue : Citibank 's own corrective actions confirm this is a systemic failure. In XX/XX/2025, the bank began issuing {$590.00} statement credits ( refunding the annual fee ) and granting XXXX points without requiring the minimum spend to customers affected by the 4506-C verification problems. This demonstrates that Citibank acknowledges its process was flawed and harmed customers. 

My Resolution Request : I urge the CFPB to investigate Citibank 's deceptive marketing and unfair account practices related to the Citi XXXX XXXX card. Specifically, I request that Citibank be required to : 1. Immediately remove the restriction on my account. 
2. Refund the {$590.00} annual fee, as they have for other affected customers. 
3. Award the XXXX bonus points, as they have for other affected customers, regardless of whether I can meet the spending requirement under these restrictive conditions. 
4. Cease the deceptive marketing of bonus offers that customers are then prevented from earning. 

Sincerely, 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 monetary relief