Consumer complaint received 2024-07-27 00:00:00
Product: Checking or savings account — Checking account
Issue: Managing an account — Fee problem
Company: CITIBANK, N.A.
State: NY

Complaint narrative:
I am a long-term ( approx.15 years ) Citibank customer and I was dismayed by the recent monthly {$15.00} fee on my individual checking account. I also have a joint checking account with my husband. When we opened our joint checking account, we were informed that a direct deposit to any checking account with my name on it would make me eligible for fee-free checking. 

My husband and I receive two regular direct deposits ( one monthly, one bi-monthly ) into our joint checking account. Each of our individual accounts is linked to our joint account. Neither of our individual checking accounts receives a monthly direct deposit. 

I have never been charged a service fee in all my years of banking with Citi until XX/XX/2024 when I first saw a {$15.00} charge to my individual checking account. I called Citi customer service and was assured by the representative that the fee was charged in error, and it was waived. Then in XX/XX/2024, the {$15.00} fee appeared again. This time, when I called customer service, I was informed that the fee was not an error, that the previous customer service representative had given me false information, and further, that unless I initiated a direct deposit into my individual checking account, the {$15.00} fee would be levied monthly, though she waived it for me as courtesy for the month of XXXX. 

This second customer service representative also told me that when Citi shifted my account to simplified banking, they had instituted an initiation grace period during which they waived all fees. She said the grace period was now over and the fee structure was now in effect, therefore every individual checking account that did not have a direct deposit of {$250.00} would be charged $ XXXX. 

This was in direct contradiction, not only to the information given to me by the first customer service representative on the phone, but also to the information given to me by my local branch representative when I opened the joint account with my husband. 

When I pointed out that Citibank had essentially changed the rules in order to levy arbitrary fees, she claimed that the criteria for simplified banking had always been thus : Every individual checking account must have a regular direct deposit of a minimum of {$250.00}. She suggested I create a XXXX account to pay myself monthly, since transferring money from XXXX Citi account to another would not count as direct deposit. This struck me not only as contradictory but also ridiculous and convoluted, so I went to my local branch to inquire. ( Address : XXXX XXXX XXXX XXXXXX/XX/XXXX, NY XXXX ) At my local branch, I was reassured in-person that a direct deposit into one account with my name on it was the ONLY criteria required for fee-free checking. But I wanted proof of reassurance, as I explained to the service representative that I do not want to see this charge next month or any subsequent months. After consulting with a colleague, the service representative regretfully informed me that although it made no sense, and although I had not been notified of the change, the simplified banking rules had indeed changed, and I would no longer be eligible for fee-free banking unless I instituted direct deposits into every checking account. He encouraged me to raise my overall balance to {$30000.00} ( together with my husband, to become a premium members ) and thus avoid all fees. But this, of course, means moving thousands of dollars into Citibank which offers virtually no return on the money during an inflationary timetherefore Id be essentially losing money. 

My husband also has an individual checking account into which there is no direct deposit ( since we steer our income deposits into our joint account ), yet Citi is not charging him a XX/XX/XXXX monthly fee. The question arises : why is the policy inconsistently applied? And why have I been given such inconsistent answers? 

My husband has banked with Citi for 40 years. Ive been a Citi customer for over a decade. We have checking, savings, CD accounts and credit cards with Citi. 

To adhere to the new rules Citibank has arbitrarily initiated, we could change our direct deposits so that we each have funds going into our individual accounts. However, this would mean that our joint account will no longer be receiving direct deposits and will therefore begin accruing the monthly fee. Wee can figure out possible workarounds ( creating XXXX accounts & paying each other, splitting income payroll into separate accounts ). But why should we have to? This process feels onerous, complicated and unnecessarythe opposite of simplified banking. It seems like a way for Citi to fleece its customers. 



Finding another financial institution may be a complicated process for consumers like myself and my husband, but its certainly a viable option, and perhaps not as complicated as simplified banking with Citi.

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