Citibank India Credit Cards – Keep away from them

May 16th, 2008 | by technodirty |

When Citibank launched Citibank MTV credit card, I thought its better to have this card to avail offers on music or collaterals related to MTV. So, applied for this card and also got this approved from Citibank.

After using the card for and maintaining good record for couple of years, I had a financial crisis and was with some debts to clear off including Citibank card credit, so I requested Citibank for a settlement of the account and convert whatever I have to pay in EMI’s. Upon receiving my request, I received a plan from Citibank for the full and final settlement.

They took PDC cheques for equal installments and they kept withdrawing monthly installments regularly. Suddenly I got a better opportunity and had to change my job and city. Due to this the bank where I was holding the salary account had to be closed by the previous employer. The cheques unfortunately I had issued to Citibank were of the same bank account, which was getting closed.

I inquired with them and explained my situation, they again gave a new plan, where the executive came and collected the new cheques of different bank, this time they reduced the number of installments and increased the amount for which I also agreed, as I wanted to get this closed as soon as possible.

The cheques which I gave were of the new bank and the first installment cheque got bounced because the salary transfer from my new employer got delayed and unaware of the situation I never checked back. The rest of the installments kept on debiting from account. Once the installments were over I contacted the department who was handling this (Eserve), they told to pay that missing installment as soon as possible, which I paid personally by visiting their branch.

even after paying the last installment, I couldn’t get any letter of confirmation that my account is settled, I tried contacting the branch but the person who was in charge of such accounts was on leave and never came online with me for two months.

Suddenly, I started receiving messages on my mobile of due payment for the same missing installment, I ignored them thinking it could be a billing mistake from the bank. I kept on getting those messages with interest levied on the principal amount and it increased more then 15% percent.

I contacted their customer care and after 1-2 months of explaining and waiting for their replies, I received an email saying:

“We have closed your card ending 2002 on January 12, 2006 as we are not in receipt of your payment for a considerable period of time.

We have arranged to reverse the outstanding of Rs. 4936.98 in your card ending 2002.”

The party got over when one day, I received a call from a lady, who said she is from the legal department of the bank and started threatening me for some IPC charges. I explained her complete situation and being a woman I respected her and tried convincing about my situation, but she kept on giving warnings to me and started giving offers on closing the account by reducing the amount, saying because one of your payment was missing we are scarping the agreement of settlement.

We had lot of heated discussion, but finally I gave up, as the amount was not much (Rs 4000 after that lady reduced and asked me to pay to avoid legal charges). Therefore, I thought it is ridiculous to get into mess for just 4k of money. I knew that these people would start sending rowdies at home and would disturb, definitely I would have wasted my time with arguments with such people and a bank (Citibank) with such ridicule way of treating it’s customers. I could have gone legal about this issue but the issue was it is time taking process in India and these people are also aware of these things. The bank even ignored my good record with the bank, as I had taken various loans and had paid them without fail.

Later, I contacted their customer care and told I would do my best to educate people about the discrepancy your bank has. The reply I got could make anyone angry to write a post like this

This is with reference to your email dated March 05, 2008.

We are concerned that your earlier contact with us did not elicit a satisfactory response. We regret the inconvenience caused.

Officer - Customer Care

The best part was that even after getting another letter of settlement from the bank and kept on getting the messages for the left over 900 bucks, until I contacted them and warned for sending messages as at that time I started preparing myself for legal action against them, which eventually has stopped may be…….

The moral of the story

  • Go in black and white with any bank. Never accept verbal confirmation from bank people on the matters of loan or credit cards. Always take confirmations in writing (no email, as it has not worked for me either). Mostly in India DSA (direct sales agents) is involved, they are the same people who call you for both making a new credit cards and loan recoveries.
  • Try to keep healthy credit card record, as customers in debts help bank to make money, which is provided as a credit to other people.
  • Indian banks such as HDFC and ICICI are good provided you maintain good credit record with them.
  • If you want to settle any loan with any bank, visit the bank directly. Do not get in to the hands of recovery agents.

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