For No-Fee-For-Life Card Holders: 55 to 44 days warning!

[aasz1978]

I'm sure this is discussed elsewhere but I think this warrants its own separate thread.

Basically, in your latest statement, there is a page called "Getting the most out of your Citibank Gold Credit Card".

Underneath the page, there is a threat that says if pay the Closing Balance 10 out of 12 consecutive months, your maximum interest free period may be reduced to 44 days.

This could be illegal as it wasn't stipulated in the offer page but I'd like to hear the go-around solution to this threat.

 

[oz_mark]

It is in the terms and conditions of the card that you would have received when you opened the card. Your use of the card would have indicated your acceptance of those terms. Can't see it is illegal.

 

[Alanslegal]

If you're paying your account in full at least 10 out of 12 months, it is likely that you would be paying every month, so the interest free days really don't come into play.......

 

[aasz1978]

Regarding the 55 to 44 threat in the T/C, I have with me the Unsecured Revolving Credit T/C booklet and I can't find anything that resembles that so would you please direct me to that clause?

Also, somewhere in this forum, I am sure this has become an issue itself. I just need to look harder.... I suppose.

Also, regarding the payment of balance every month. The reduction of payment period from 55 to 44 means the bill is due for payment within 2 weeks upon receiving the statement (14 days).

This is a reduction of 11 days (works about 2 weeks earlier) to pay and quite frankly, I can dare whoever applies this card if they are aware of this.

I am sure they will rethink.

 

[StevePER]

This seems so insignificant that I don't understand what you're complaining about. There are many other credit cards that already do 44 days rather than 55. If you think it devalues the card so much you should change to some other credit card that has no annual fee, earns points at 1 for 1 and includes travel insurance.

 

[oz_mark]

Regarding the 55 to 44 threat in the T/C, I have with me the Unsecured Revolving Credit T/C booklet and I can't find anything that resembles that so would you please direct me to that clause?

Also, somewhere in this forum, I am sure this has become an issue itself. I just need to look harder.... I suppose.

Also, regarding the payment of balance every month. The reduction of payment period from 55 to 44 means the bill is due for payment within 2 weeks upon receiving the statement (14 days).

This is a reduction of 11 days (works about 2 weeks earlier) to pay and quite frankly, I can dare whoever applies this card if they are aware of this.

I am sure they will rethink.

As I am in the process of moving huse, I can't look up all my paperwork at the moment, however, spoke to someone who got the card, and he mentioned it was actually in the offer letter under the heading of Account Activity, so check the offer letter and finacial tables.

When they enforced the clause on me I went looking for it, and did find it.

FWIW, in my case they moved the statement date so that the due date did not change. But it did mean my first statement under the new regimewas 6 weeks long. This was when I was a plaiinum holder and it did precipitate my move to another card, and I no longer have the platinum card. They did not appear open to negitiating on the issue either.

 

[straitman]

This seems so insignificant that I don't understand what you're complaining about. There are many other credit cards that already do 44 days rather than 55. If you think it devalues the card so much you should change to some other credit card that has no annual fee, earns points at 1 for 1 and includes travel insurance.

I'm not sure anyone is actually complaining, rather stating a case and hopefully stopping someone else getting caught out.

 

[aasz1978]

This seems so insignificant that I don't understand what you're complaining about. There are many other credit cards that already do 44 days rather than 55. If you think it devalues the card so much you should change to some other credit card that has no annual fee, earns points at 1 for 1 and includes travel insurance.

As Straitman has said, NOBODY is complaining and certainly I didn't.

If about 12 of my friends said to me that they got this warning, chances are they didn't know about it in the first hand and I am one of the affected card-holder.

And hence my intention was to pre-warn. If you consider this information is infantile, then by all means, please ignore at your convenience instead of flaming the poster for "complaining".

And for your information, I rechecked my Financial Table, on the line where it says Interest Free days, it says 55 days for Retail Purchases. I rechecked my fin table again, nothing mention about 55-44 clause.

This doesn't mean other people didn't have the clause but in my case, I didn't have the clause.

Having said that, I am also surprised they did this to platinum cardholders. Man, they really are something aren't they.

 

[straitman]

This Citibank we are talking about :?:

That being the case then nothing is surprising :!:

 

[serfty]

I recently applied for and received this card. The information about the reduction in interest free period was not in the booklet itself ...

... there was an addendum leaflet enclosed with this being one if the changes listed.

For those with existing cards, I would suggest this leaflet was/will be enclosed with recent/imminent statements.

FWIW, this was first reported by Dr_Nick in December last year:

• http://www.frequentflyer.com.au/com...nk-gold-no-annual-fee-7874-10.html#post151677

 

[Baysider]

I received my card two weeks ago and the letter that the card itself was attached to does in fact state (right at the bottom): "If you pay the Closing Balance by the Payment Due Date for 10 out of 12 consecutive months, your maximum interest free period may be reduced to 44 days. This means that the number of days in which you must make your repayments will be reduced from 25 days to 14 days."

There are two possible solutions to this. (1) Manipulate your card usage so that 3 times a year you have a very low card balance and you pay the closing balance a day late; or (2) If you are a good spender on the card and they are making plenty out of the merchant fees from your transcations, wait for them to tell you that they have cut you to 44 days and then tell them you'll close the account unless they change it back.

 

[StevePER]

If you consider this information is infantile, then by all means, please ignore at your convenience instead of flaming the poster for "complaining".

On rereading my previous post it does sound much harsher than I intended. I apologise - my intention was just to point out that this is one of the better free credit cards around. I'm sorry that you saw this post as an attack against yourself.

I've checked my Citibank paperwork from September 2006 and on the main offer document it says "Up to 55 days for Retail Purchases". There's nothing in the August 06 terms and conditions that indicates this may change, except for a clause that says Citibank can change anything they like if they give 20 days notice.

 

[netaddict]

I got this notice as well. I don't think it is right (however what they are doing is legal).

Doing this encourages people to go into debt when they may otherwise not. Basically they are stopping us from using their funds to keep our money longer.

Be interesting if anyone in the media makes a story out of this on a slow news day and more so lets hope other lenders don't start doing the same.

 

[aasz1978]

Upon reexamination of the little notice I come to realise one thing. Probably playing semantics a bit but...

"If you pay the Closing Balance by the Payment Due Date for 10 out of 12 consecutive months, your maximum interest free period may be reduced to 44 days. This means that the number of days in which you must make your repayments will be reduced from 25 days to 14 days."


10 out of 12 CONSECUTIVE months....

So if I break the continuity on the 9th month, wouldn't that mean the consecutive count drops to 1 again?

Does this sound logical perhaps?

I could think of spending $100 and only pay the minimum amount of $10 (or 3%) for one month every 9 mths...

 

[serfty]

Just be wary; if you don't pay the full amount owed, interest becomes payable on ALL purchases, not just the amount you did not pay.

 

[aasz1978]

Just be wary; if you don't pay the full amount owed, interest becomes payable on ALL purchases, not just the amount you did not pay.

By golly you are right. Damn.

That means refraining from using Citibank Gold Card for 2 full months at least.

 

[wafliron]

Just got this notice today too for my CitiBusiness Card.

Pretty annoying for those of us who make full use of interest free days (go offset account!) but pay in full each month. I think I'll take the route suggested by another poster: watch my bills, whinge and cough if they ever reduce the days, and see how I go from there.

Anyone else think it's pretty low of them to penalise responsible use of credit, especially in the current climate?

 

[Baysider]

I have 3 other credit cards - as soon as one becomes a liability it will be out with the scissors. Citibank would have to have pretty poor business sense to accept account closures rather than just relenting and putting good customers back on 55 days. A fair percentage of customers will just accept the change without a whimper, but I'd be surprised if Citibank didn't give in readily to anyone prepared to make a stand.

 

[oz_mark]

I have 3 other credit cards - as soon as one becomes a liability it will be out with the scissors. Citibank would have to have pretty poor business sense to accept account closures rather than just relenting and putting good customers back on 55 days. A fair percentage of customers will just accept the change without a whimper, but I'd be surprised if Citibank didn't give in readily to anyone prepared to make a stand.

Im my experience when closing my platinum card, they were not prepared to negotiate on the free days, even though it was the reason I gave for closing the account.

 

[kpc]

Don't want to jinx myself...

If you pay the Closing Balance by the Payment Due Date for 10 out of 12 consecutive months, your maximum interest free period may be reduced to 44 days. This means that the number of days in which you must make your repayments will be reduced from 25 days to 14 days

I've had the free Gold card since Oct 06, and have paid the closing balance in full ever since...still have the 25 free days; if they reduce it to 14 days (like my current Diners card), I'll just have to grin and bear it. I like the annual fee free card, and the fact that you can earn QF points at a 1: 1 ratio, albeit the T/Fs to QF points are at 10000 blocks:shock:.

I find you can manipulate your spending on the card eg by making the large purchase / payment a day or so after the end of the last statemnt period, and this will maximixe out your interest free days....only really worth the effort for larger amounts:mrgreen: