Consumer complaint received 2025-04-16 00:00:00
Product: Credit card — General-purpose credit card or charge card
Issue: Credit monitoring or identity theft protection services — Billing dispute for services
Company: CITIBANK, N.A.
State: TX

Complaint narrative:
Consumer Complaint Submission to CFPB To : Consumer Financial Protection Bureau Subject : Formal Complaint Regarding Citibanks Coercive Settlement Tactics and Arbitration Dispute Handling Dear Sir/Madam, I am filing this formal complaint against Citibank for improper conduct in relation to an ongoing arbitration process, the handling of my accounts, and the negative impact on my credit report. Citibank has exhibited consistent bad faith actions, including the use of deceptive settlement tactics, obstruction of formal dispute resolution channels, and manipulation of communication to avoid a fair resolution. 

Background : 1. Arbitration and Coercive Settlement Offers : - I initiated an arbitration claim with Citibank through the XXXX XXXX XXXX XXXX XXXX ), regarding two accounts that were the only ones reporting negatively on my credit report. In response, Citibank filed a counterclaim only after I initiated arbitration. This counterclaim appears to be retaliatory, aimed at undermining my legitimate claim and intimidating me. 
- Citibank subsequently attempted to settle the matter by email, bypassing the formal XXXX settlement platform. In their email, they pressured me to drop my arbitration claim in exchange for dropping their counterclaim. However, the core issuecorrecting the account status on my credit reportremained unresolved. Citibank justified their refusal to address this issue by citing a projected bankruptcy. 

2. Misrepresentation Regarding Bankruptcy : - Citibank claimed they could not update/adjust the credit bureaus, surrounding the two accounts on my claim ( only ones displaying negatively on my credit report ) due to the " potential of bankruptcy '', even though no bankruptcy proceedings have been filed. This assertion is misleading and violates the principles of bankruptcy law. 
- Under 11 U.S.C. 524 ( a ) ( 2 ), actions are prohibited only post-dischargenot pre-filing. Their reasoning contradicts established bankruptcy law.

- Citibanks refusal to correct the tradeline reporting based on speculative bankruptcy proceedings violates obligations under the Fair Credit Reporting Act ( 15 U.S.C. 1681s-2 ( a ) ( 1 ) ( A ) ) and appears to be a deceptive act under the Dodd-Frank Acts UDAAP provisions ( 1031 ).

3. Settlement Attempts made in Good Faith by me, including Citibanks Bad Faith : - I have made two separate, formal, settlement attempts using XXXX  Settlement Tool : - The first attempt was formal but appears to have been ignored by Citibank. The offer eventually expired without any response. 
- The second formal attempt was acknowledged informally via email but was not processed through the formal XXXX  tool, and the offer expired once again due to no follow-up from Citibank. 

4. Failure to Communicate and Avoidance of Formal Channels : - Despite making multiple attempts to communicate via phone, Citibank failed to respond to my requests for a phone call to discuss a resolution. In their email offering a settlement on their terms, they stated that I could contact them instead, demonstrating their coercive, uncooperative and unprofessional manner. 

5. Manipulation of Communication and Circumventing Formal Dispute Resolution : - Citibank buried their settlement offer in an email thread, going around the formal XXXX dispute resolution process entirely. Prior to Citibanks response, I asked within the same email thread, I asked ( expecting XXXX to respond ) if I should discuss potential settlement in front of XXXX. or within the formal XXXX settlement process, Citibank stepped in and removed the XXXX representative ( the Manager of XXXX XXXX ) from the thread. This deliberate attempt to bypass the proper arbitration process was done without any notice or clarification. When I responded to all, my email system automatically added the XXXX representative back into the conversation, exposing Citibanks attempt to manipulate the process and avoid the formal arbitration channels. Citibank then filed an objection stating that I should not have shared our communication with XXXX, asking that to be sent to the arbitrator without any other context or apparent concern. 
Citibanks conduct suggests an intentional strategy to intimidate, manipulate, and withhold a fair resolution of this matter. I believe their actions amount to coercion and retaliation against me for initiating arbitration, or otherwise. Their refusal to engage through the proper channels, their inaccurate claims regarding bankruptcy, and their avoidance of legitimate communication have left me with no choice but to file this complaint. 

6. Retaliatory and Selective Reporting : - Citibank delayed filing a counterclaim for over three years and only did so after I initiated arbitration. This strongly suggests retaliatory intent.

- The only accounts reported negatively are those involved in arbitration my arbitration claimfurther proving selective and punitive action. 

7. Suppression and Inconsistency in Reporting : - Other Citibank accounts were suppressed or removed, while disputed accounts remained having been reported negatively. This inconsistency shows an intent to penalize and discredit me during dispute proceedings. 

Legal and Regulatory Basis for Complaint : - Fair Credit Reporting Act ( FCRA ) 15 U.S.C. 1681s-2 ( a ) ( 1 ) ( A ) : Requires accurate reporting. Citibanks actions are contrary to this requirement.

- Bankruptcy Code 11 U.S.C. 524 ( a ) ( 2 ) : Prohibits post-discharge collection, not reporting corrections before filing.

- Dodd-Frank Act 1031 & 12 U.S.C. 5531 : Protects against unfair, deceptive, or abusive acts and practices ( UDAAP ). 
- XXXX Consumer Arbitration Rules Rule 20 ( a ) : Requires XXXX to be informed of settlements, which Citibank bypassed. 
- XXXX Code of Ethics XXXX XXXX XXXX  XXXX : Calls for fairness and full transparency from all parties. 

Request for Investigation : Given the issues displayed above, I respectfully request that the Consumer Financial Protection Bureau ( CFPB ), along with other relevant regulatory bodies, investigate Citibanks actions. Specifically, I am asking for an investigation into how their behavior : - Violates consumer protections regarding the Fair Credit Reporting Act ( FCRA ) and bankruptcy law, - Constitutes coercive settlement tactics intended to intimidate me, - Involves manipulation of formal dispute resolution channels to circumvent arbitration and avoid proper legal scrutiny. 
Conclusion : Citibanks actions are damaging to my financial and credit standing, along with my ability to resolve this matter fairly. I request that regulatory authorities take appropriate action to investigate Citibanks conduct and ensure that their actions comply with relevant consumer protection laws. 

Thank you for your attention to this matter.

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