Citibank readyCredit - Give yourself a present this xmas

[New Chump]

Greetings to all

I have just heard from the Ombudsman office. My case is being attended by a systemic issues person. This could mean that the Ombudsman office has recognised that the case I presented is not a once-off and the outcome may likely to impact a larger group including those who have not lodged any claim formally.

I am not sure whether this development has anything to do with the $40k claim win.

It appears now that my case will be investigated on contract law basis. The investigating officer clearly indicates that she is determining whether my participation in the offer program amount to an acceptance of a contract. Then, determine the damages if there is a contract to enforce. If I read this correctly, the question of 'intent to form a legal relationship', 'legitimacy of offer', 'certainty' and 'consideration' has been determined.

In short, I am optimistic.

I like your optimisim, kaki - I but don't quite share it yet.

I must have received a very similar letter, setting out the facts of the dispute and saying the issues she (BFSO systemic issues manager) will investigate include:

"1. Did your acceptance of the bank's cashback promtion offer amount to a contract? [Should be a no-brainer]

2. Was the cash back promotion offer misleading? [Should not be relevant in light of answer to no.1]

3. If there was a contract and/or misleading conduct, what loss have you suffered for which you are entitled to compensation? [As Citibank itself set out the amount it agreed to pay, this should alsio be a no-brainer]"

At least there is some movement from the BFSO now.

NC

 

[novacatz]

3. If there was a contract and/or misleading conduct, what loss have you suffered for which you are entitled to compensation? [As Citibank itself set out the amount it agreed to pay, this should alsio be a no-brainer]"

While I am hoping you guys win (hey, if CB can't write a decent set of T&C they should suffer for it) -- I think this is the biggest point --

I think it is pretty clear that the possibility of churning was an unintended side effect which some took advantage of (to great effect) but it is pretty hard to demonstrate real 'loss' in this particular case.

 

[e_wolfe]

I recieved information that the lady on Today Tonight that was owed $40,000 has finally been sucessful in getting the money she was owed.
I suggest you contact Bank Complaint - Bank Dispute - Dispute Resolution in Australia if you are not happy with the ruling the Ombudsman makes. I recieved a letter from the Ombudsman asking for more information.
Has anyone else heard anything?

Following this post I wish to correct the information I provided. The lady who was on Today Tonight did indeed obtain a satisfactory outcome - however I am unaware as the the actual amount she recieved.

I would also like to state that it may be preferable to contact Bank Complaint - Bank Dispute - Dispute Resolution in Australia before the Ombudsman makes a ruling as they may be able to obtain a better outcome. As I mentioned in one of first posts in this thread, it should be noted that the banking Ombudsman recieves funding from the banks. This worries me as I believe it is inappropriate for a body which makes rulings on banking matters to be directly funded by the banks. I hope my concerns prove to be unfounded.

 

[Kiwi Flyer]

As I mentioned in one of first posts in this thread, it should be noted that the banking Ombudsman recieves funding from the banks. This worries me as I believe it is inappropriate for a body which makes rulings on banking matters to be directly funded by the banks. I hope my concerns prove to be unfounded.

It's normal for an ombudsman/consumer dispute resolution body to be funded by the industry. Typically government doesn't want to fund them, and since the whole point is to be easier (less barriers to use) on the consumer than the courts there really is no one else to fund it.

In case you're asking yourself why would the industry fund a body that can rule against them? There are advantages (to the industry) to having an ombudsman compared with the alternative of court action - lower cost (less need for lawyers!), lower profile (mostly), less danger of precedent, etc.

 

[michaeljs]

I would also like to state that it may be preferable to contact Bank Complaint - Bank Dispute - Dispute Resolution in Australia before the Ombudsman makes a ruling as they may be able to obtain a better outcome. As I mentioned in one of first posts in this thread, it should be noted that the banking Ombudsman recieves funding from the banks. This worries me as I believe it is inappropriate for a body which makes rulings on banking matters to be directly funded by the banks. I hope my concerns prove to be unfounded.

You have nothing to worry about! The Banks are forced to join the Banking Ombudsman, and the reason they pay for it is so that the consumer doesn't pay a cent.

Good luck!

 

[e_wolfe]

"1. Did your acceptance of the bank's cashback promtion offer amount to a contract? [Should be a no-brainer]

2. Was the cash back promotion offer misleading? [Should not be relevant in light of answer to no.1]

3. If there was a contract and/or misleading conduct, what loss have you suffered for which you are entitled to compensation? [As Citibank itself set out the amount it agreed to pay, this should alsio be a no-brainer]"

NC

Some thoughts ...

1. I believe that the terms as outlined by Citigroup Pty Ltd in their letter dated 28 October 2005 amount to a statement of the conditions that applied to my ReadyCredit account during the period 1 November 2005 to 31 December 2005 inclusive. As such they are an alteration to the conditions of a contract which already existed between myself and Citigroup Pty Ltd. There was no provision for my acceptance of these conditions, as the letter stated that:
“You don’t even need to apply, just use your ReadyCredit account and we’ll give you money back, it’s as simple as that…”*
Thus these conditions automatically became those that applied to any transactions on my ReadyCredit account during the period 1 November 2005 to 31 December 2005 inclusive. In addition, financial consideration was due on my part, as this is a credit facility account and interest accrued on the transactions I made during the period in question.
2. I don’t believe the bank’s material outlining the terms which applied to my ReadyCredit account during the period 1 November 2005 to 31 December 2005 inclusive was misleading. The material was clear and definitive and all that remains is for Citigroup Pty Ltd to honour those terms.
3. I am entitled, at a minimum, to the amount of $xx_X as per the terms that applied to my ReadyCredit account during the period 1 November 2005 to 31 December 2005 inclusive. I believe I am also entitled to interest on this amount at market rates for the period 31 January 2006 until such time at which the amount is credited in full to my ReadyCredit account.

 

[sydney_kings]

Well, Citibank is doing a similar offer this year. $20 rebate for every $500, but clearly states a maximum rebate of $50 :shock:

I guess they learnt their lesson from last years debacle (unfortunately I didn't take advantage of it!) :evil:

 

[interloper]

citibank are offering frequent flyer points now for new ready credit customers as an incentive to sign up. interested in finding out if anyone has been credited with the promised points. i was told by the non existant customer service department that this would happen eight weeks after account activation, hahahahahah. six months later still nothing. dont do it people.

 

[kaki]

I have just discovered that Citibank had credited a significant amount of the Dec 05 - Jan 06 interest into my account. The interest was charged against the funds I drew down to earn the cash back. Anyone else getting the interest refund ?

 

[e_wolfe]

I got the interest refund too. I rang the lady at the Ombudsman's office who is handling our cases and she said it has nothing to do with any ruling she has made and that if she rules in our favour the interest amount already credited will just be deducted from the total amount that Citibank will have to pay us. I suspect Citibank has refunded the interst amount in an attempt to counter the claim that a contract existed. For a contract to exist there has to be financial consideration on our part. That consideration, in this case, would be the interst we had to pay. However nothing changes the fact that Citibank charged the interst at the time and hence confirmed the contractual arrangement. If this ever goes to court I doubt we would lose. I'm still open to a class action if the Ombudsman fails to make a just ruling.

 

[New Chump]

I have just discovered that Citibank had credited a significant amount of the Dec 05 - Jan 06 interest into my account. The interest was charged against the funds I drew down to earn the cash back. Anyone else getting the interest refund ?

My interest seems to have been returned too. Backdated to Dec 05, Jan 06 and Feb 06.

Otherwise, I am patiently waiting for the BFSO to tell Citibank :evil: to promptly hand over the rest (with accrued interest), as Citibank agreed to do but dishounourably has failed to have done so to this point.



NC

 

[bits]

Well, Citibank is doing a similar offer this year. $20 rebate for every $500, but clearly states a maximum rebate of $50 :shock:

I guess they learnt their lesson from last years debacle (unfortunately I didn't take advantage of it!) :evil:

Anybody have a link for this year's offer?

 

[novacatz]

can anyone report actually winning this battle?

citibank must have quite a few $$$ on the line to play returning interest games like they have....

 

[e_wolfe]

Recieved a letter about a week ago now from the banking ombudsman's office. It says:

"As your dispute raises complex legal and contractual issues I am writing to advise that the consideration of those issues is continuing within this office. Your dispute is currently being further reviewed by the Ombudsman and his Legal Counsel."
"I am unable to provide you with a clear indication of when that review will be completed but assure you that I will contact you as soon as we are in a position to proceed."

Anyone else receive the same letter?
I first lodged my dispute in February 2006 and they have just decided now that it's complex? It's not complex at all - I just want Citibank to honour the terms they stated. Quite simple really.

 

[novacatz]

Well to be fair, it seems that a lot of money is on the line for this one (all the entitlements that CB have to pay including that 40k???) -- so the obudsmen wants to get this right -- it's descision is binding on CB so i don't tihnk they can appeal it ... so I think it is reasonable to take a bit longer to make sure the decision is (legally) watertight.

 

[e_wolfe]

the lady who had 40K on the line has already settled through dispute assist.

 

[kaki]

Recieved a letter about a week ago now from the banking ombudsman's office. It says:

"As your dispute raises complex legal and contractual issues I am writing to advise that the consideration of those issues is continuing within this office. Your dispute is currently being further reviewed by the Ombudsman and his Legal Counsel."
"I am unable to provide you with a clear indication of when that review will be completed but assure you that I will contact you as soon as we are in a position to proceed."

Anyone else receive the same letter?
I first lodged my dispute in February 2006 and they have just decided now that it's complex? It's not complex at all - I just want Citibank to honour the terms they stated. Quite simple really.

I have got that too. I am afraid to think that this indeed a complex contract issue, although I must qualify that I am not a lawyer. Who is making the offer in this case ? Is the interest (initially) taken by CB the consideration or is the cashback the consideration ? If the former is correct, does it matter at all when CB refunds the interest noting that both parties had already agreed that CB was to charge the interest ?

 

[New Chump]

I have got that too. I am afraid to think that this indeed a complex contract issue, although I must qualify that I am not a lawyer. Who is making the offer in this case ? Is the interest (initially) taken by CB the consideration or is the cashback the consideration ? If the former is correct, does it matter at all when CB refunds the interest noting that both parties had already agreed that CB was to charge the interest ?

IMHO the offer and the consideration are irrelevant. When you open your ReadyCredit account you agree to Citibank's terms and conditions, which are applicable to all Citibank ReadyCredit accounts. They are a binding contract. One of those conditions is Citibank's right to unilaterally vary the ReadyCredit terms and conditions. Citibank varied those terms in its 31 October 2005 letter by:

1. introducing the $160 "facilitly" fee payable to Citibank by you; and

2. Citibank agreeing to pay you the cashback amount based on your spend.

Can't see any argument that their letter was not legally binding stacking up. Otherwise the $160 "facilitly" fee payable to Citibank under the same letter would not be legally binding.

Recieved a letter about a week ago now from the banking ombudsman's office. It says:

"As your dispute raises complex legal and contractual issues I am writing to advise that the consideration of those issues is continuing within this office. Your dispute is currently being further reviewed by the Ombudsman and his Legal Counsel."
"I am unable to provide you with a clear indication of when that review will be completed but assure you that I will contact you as soon as we are in a position to proceed."

Anyone else receive the same letter?

I got the same letter. The BFSO seems be making this dispute with Citibank more complex than it is.

NC

 

[novacatz]

so one year on... did you guys win?

 

[e_wolfe]

so one year on... did you guys win?

Still waiting on the BFSO ...... Over 10 months since I lodged my complaint with them.....