Consumer complaint received 2025-02-21 00:00:00
Product: Credit card — General-purpose credit card or charge card
Issue: Other features, terms, or problems — Other problem
Company: CITIBANK, N.A.
State: GA

Complaint narrative:
I opened this card in 2009 as a college student with no established credit and was initially approved for a {$1000.00} limit. Over the years, there were times when I maxed out the card and kept a running balance, but as I became more knowledgeable about credit management, I made it a point to either pay off the balance each month or keep my usage below 30 %. Citi rewarded my responsible borrowing behavior by automatically increasing my credit limit multiple times. By the time XXXX hit, my limit had grown to {$3500.00}. 

During the pandemic, I maxed out my line of credit due to being out of work. I continued to pay the minimum amount each month to keep the account in good standing. Once I regained financial stability, I made a point to pay off the balance in full. Within DAYS of paying off my balance, Citi slashed my credit limit to $ XXXX than half of what I was initially approved for. 

This action not only blindsided me but also caused my XXXX XXXX to plummet from the XXXX to around XXXX, negatively affecting my financial stability. Additionally, because XXXX of my other credit accounts were closed when they were paid off, my available credit dropped significantly, impacting my credit utilization ratio and overall creditworthiness. 

I immediately contacted Citi 's customer service to understand why this decision was made. Despite my long-standing history of responsible usage and loyalty, I was told that my credit limit was now too low to qualify for a credit limit increaseeven though XXXX own actions directly caused my score to drop. This felt like a penalty for being financially responsible. 

I also believe Citi violated the Truth in Lending Act ( XXXX ) by failing to provide clear and adequate disclosures regarding the credit limit reduction. Under XXXX, creditors are required to provide timely and clear explanations of credit decisions that impact the terms of the account. In this case : Citi did not notify me in advance of the credit limit reduction. 
No clear or detailed explanation was provided for the drastic reduction, despite my consistent payment history and responsible usage in recent years. 
Citis actions left me without the opportunity to adjust my financial strategy or prepare for the negative impact on my XXXX XXXX. 
XXXX  mandates that creditors must provide notice of significant changes to the terms of an account, especially when those changes adversely affect the customer. By failing to do so, Citi did not act transparently or fairly, violating XXXX  disclosure requirements. 

Citis actions have caused significant and unnecessary damage to my XXXX XXXX and financial stability. Although I initially did not have perfect credit behavior, I grew to be a responsible borrower, which led to multiple credit line increases. Despite this demonstrated growth and loyalty, Citi chose to penalize me at a crucial financial moment. 

I am filing this formal complaint because I believe their actions were not only unfair but also potentially unlawful under XXXX. I request a thorough investigation and appropriate corrective actions to resolve this issue.

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