Nov 28, 2005 09:45 PM
3563 Views
(Updated Mar 06, 2006 06:16 PM)
I had written a few months back on ''Surviving Citi''. This is part 2 and final episode of an unforgettable-for-all-the-wrong-reasons tryst with citi.
The problem had started in early 2005 when I terminated my standing instruction to pay credit card balance from suvidha account every month. Citi got a whiff that I was about to close credit card, given my complaints in recent past. So what happened next is that they made it impossible for me to close my credit card.
In past review, I was still fighting to get free of citi, with one suvidha and one cc account hanging around my neck. The citi never sent my reward points redeemed in Mar 05, and I sat tight and did not pay equivalent dues in my cc account. That seemed the only way to get the never sleeping citi wake up for a while. Nothing much happened for several months except emails which did not seem to go anywhere.
The credit card account balance was increasing due to late fees and charges, and the total extra charges had reached more than 2k. The collection dept had started calling and would feign helplessness in resolving the reward points issue. They would say they have no authority, or communication to other departments. Sure enough, they have only authority to get money! I had threatened legal action but also suggested that I would pay no more than principal outstanding provided my reward points are sent. So the cat and mouse game went on for a while.
Then in an interesting turn, citi decided to play a con game. They quietly added back my reward points in cc statement, and so tried to make me liable for all the extra charges accumulated so far. Legally minded that I am, I found a flaw in their tactic. They had sent me email several months back confirming that the cc account was closed, and I only had to settle the outstanding dues. I replied by email how they could add reward points to a closed credit card? That got them, and they reversed charges of more than 2k, and I was also able to redeem reward points within 1 week. Imagine this because they had told my wife that the delay in her reward points redemption was because they sent the gifts only once a month! Then how did I get mine within a week? The meek shall inherit the earth, but may never get reward points from citi.
Credit card closed: it was a milestone. But it was not over yet. I had a suvidha account which was near zero balance, and yet to be closed. I sent a fax and followed up with 2-3 more emails on same issue. Finally they closed the suvidha account and I was able to breathe freely again! Good riddance!
Now for survial tactics:
Citi is only a good weather friend. Not that I did not have trouble with other banks, but the conceit, viciousness, and tenacity of citi is amazing. So rule 1: be prepared for a long drawn war. It is not going to be a one off battle.
Any promise made by citi to you over the phone is as good as useless. Which is why they provide good service on phone, but lousy on email. Emails can be used as evidences in case of legal action. But make sure to communicate by email and save the responses always. As in my case, a simple email from citi which I had saved later saved me 2k of charges and further trouble.
While citi phone officers may try to delay or say they don't have information, I suspect they track each and every phone call and email and anything else like a hawk. I used to get emails from citi just around the statement due date. Many of these mentioend that customer's credit information will be shared with CIBIL (the retail credit rating agency). It was a veiled threat that non-payment could lead to bad loan ratings, not that I need any more loan. This is the 'conceit' part of citi.
While email service is bad, it is amazing citi did not answer or confirm my fax either. That is what I call viciousness. You can make your own judgment whether it is worthwhile to deal with such a bank.
In each of your email or fax/letter, politely remind them of possible courses of action like complaint to RBI, banking ombudsman, consumer court etc. Recently, the RBI and Indian banking association (IBA) has been coming out with more and more guidelines for banks and credit card issuers on how to 'behave' with customers. Make use of this information to your advantage.
In the end, there is no free lunch. While you may get enticed with some lollipop or offer which saves you some dubious amount of few hundreds, ask yourselves is it worth the time and trouble you might end up into. Is that a lifetime free offer or you may become their prisoner for life?
