Citifinancial engages in an (apparently) legal financial scam that, in my case, worked like this:
As I bought about $2,000 of appliances, the salesman practically got down on his knees begging me to take out a Citifinancial card, and charge it there. I didn't need to, but shrugged, accepting his pleas to take "one-year of interest free finance."
Every month Citi sent a "zero payment due" statement.
The month the bill was due, the bank intentionally skipped sending that statement.
It instead sent a statement the subsequent month, demanding a year of back interest at 25 percent retroactive interest fee, amounting to about $700.
I protested to Citi, and, naturally, my protests were rebuffed -- as this was not an accident, but plainly a act of intentional and systematic theft.
I sent a letter of protest to our attorney general -- now New York gubernatorial candidate Andrew Cuomo -- and received no answer.
Left with no alternative, I paid the $700, and sent an angry letter of protest to the Citicorp board. I again received no answer.
I have lifelong pristine credit, carry no debt other than my mortgage, and have a master's degree in economics. This incident, and my inability to get redress for such an injustice, has infuriated me to no end.
As a result, I have ended all my financial relationships with Citicorp -- for life. I've also warned several thousand friends and relatives to steer clear. I hope I've singlehandedly cost Citi $10 or $15 million.
Very happy to see that it's collapsing at last -- it couldn't happen soon enough.
If an attorney would like to take this up as a class action suit, or use me as a test case in this or other instances of scam financiers, I'd be more than happy to assist.
6 Updates & Rebuttals
Ronny g
North hollywood,California,
USA
I am still a little torn...
#7Consumer Comment
Wed, October 13, 2010
..I would actually not be too surprised that a financial institution would pull something like this in hopes the customer makes a late payment. I mean everyone should be aware that a no interest deal is great....that is until you miss a payment and you get slammed with all the interest.
But at the same time I am surprised someone with a Masters degree in economics..or even a high school degree would think it is okay to purchase a product..and not investigate why month after month statements are arriving that have a zero payment due. I mean how long did you expect this to go on before you would have to start paying?..regardless of the zero interest? One does have to take that into consideration.
I have noticed sometimes when I open a new CC account, that the first statement will sometimes have zero due. But I always call them anyhow and ask when will the first payment be due. Why do I do this? Because I am not going to trust them, the mail, or the billing system to care about my credit rating, interest rates, or late fees. An old saying goes "I may have been born at night, but not last night". Would I be pissed off of this happened to me? Heck yeah..so I don't let it happen.
You can try to fight or dispute this..I am not sure of the laws regarding billing errors or loss in mail..which you know is what Citi will claim..but personally I don't think it looks too good.
coast
USAaccrued interest
#7Consumer Comment
Tue, October 12, 2010
Read the original financial agreement. Does it state that interest will be accrued from the date of the agreement if the principal is not paid off within one year?
cheated
Brooklyn,New York,
USA
citifinancial scammed me
#7Author of original report
Tue, October 12, 2010
If I recall, I filed a complaint with the FTC as well. It was acknowledged, but I was informed of no further action.
cheated
Brooklyn,New York,
United States of America
Citifinancial scammed me
#7Author of original report
Tue, October 12, 2010
No, that was per the terms of "a year of no-interest payments." I presumed the "zero balance due" statements were being sent simply to show that there was no payment due yet. Credit card companies typically operate this way.
Bman
Philadelphia,Pennsylvania,
United States of America
A Perfect Case...
#7Consumer Comment
Tue, October 12, 2010
Please this is a perfect case to consider writing a complaint and sending to this agency:
http://www.ftc.gov/reports/index.htm
Ronny g
North hollywood,California,
USA
Having a little trouble understanding..
#7Consumer Comment
Mon, October 11, 2010
Granted I do not have a masters in economics, but I certainly know the difference between "interest free" and "payment free".
Weren't you curious why you were receiving statements with zero payment due?
I do agree if this was an error or intent on the banks part to screw you it should be investigated..but I would have been on the phone to them right away..not waiting months for this disaster to happen. I would have asked them simply "why are my statements informing me zero payment is due when the appliance is not free?"