Reduction in Transfer Rates to Velocity/Krisflyer

[vae086]

I asked if QF, SQ and DJ all increased their prices on the same day. The agent said 'no... they all changed their prices some time ago, and Citi has been absorbing the costs until now'.

If so,they would have had plenty of time to give notice

 

[wchiri]

I got my promised call back, 'priya' was her name. She offered me 10,000 points as compensation. I took it seeing as I only had 45,000 points anyway. They are already in my account.

 

[Colin 2905]

I think where to from Citibank is a good thread to start up but probably shouldn't be this thread!

Couldn't see one, so started one.....

http://www.australianfrequentflyer....ere-to-citibank-thread-71857.html#post1340004

 

[burmans]

Well just had response call from Citi - they are sticking by their claim that they only need to give notice if their is a change to the earn rates of Rewards pts.

I then advised I will submit written complaint and if I receive a response which is not satisfactory then I will be submitting complaint to FOS and alsoi furnishing ACCC with a thorough run down of Citi's actions in this matter.

I think this a clear case of misleading conduct and hence a good reason to complain to the ACC if this does not align with their T&C's.

 

[Mark3000]

VAG Newbie, when they offered you reduction from $700 to $350 was that just for one year or forever?
I have the signature fee free for life and would be happy with an upgrade to prestige if fee free, but it sounds like this is not an option based on what they offered you

Thanks

 

[MEL_Traveller]

I think this a clear case of misleading conduct and hence a good reason to complain to the ACC if this does not align with their T&C's.

The ACCC may go beyond what is in the Ts and Cs. Citi must have known about this before they pulled the trigger on 1 November. So the major issue is that people were, for a time at least, continuing to spend on a product which Citi knew they had no intention of honouring. That's the potentially misleading bit.

 

[ninja-tim]

Thanks Dave,
I'm in.

 

[notzac]

I just used the Messages function in online banking to send them the following:

To whom it may concern:

I recently went to transfer points from my Citibank Rewards account to my Singapore Airlines Krisflyer account, only to find that the transfer rate has been drastically reduced without notice to me.

Per clause 6.2 of the Citi Signature Rewards T&Cs, you state that you will provide 90 days written notice if you *change the rate at which all Points in the program are generally earned or converted* - this notice did not occur.

I appreciate that Citibank has the right to alter the Rewards program, but not in a manner that contravenes your own terms and conditions. In lieu of providing me the 90 days written notice, I require that Citibank convert the points in my account at the old rate to my Singapore Airlines KrisFlyer account - account number is xx_xx_x.

Please advise when the transfer at the old rate is complete - I will consider the complaint resolved at that time.

Will be interesting to see what I get back. If I don't get what I want, at least I have a reference number to open a case with FOS.

 

[paultiffen]

I got the person on the line to open the link to the ACCC investigation and she is going to forward that to management after she read through it.

She said annual fee could not be waived but still waiting to hear back about the points (asked for enough to cover the difference in redemption rates).

 

[VAG newbie]

VAG Newbie, when they offered you reduction from $700 to $350 was that just for one year or forever?
I have the signature fee free for life and would be happy with an upgrade to prestige if fee free, but it sounds like this is not an option based on what they offered you

Thanks

One off. The phone agent also told me they have received an "alert" with reference to 6.2.3. So for anyone still thinking about calling, don't waste your time. The phone agent was actually very apologetic as she could not fulfill her promise. I actually thanked her for her help and understood that it wasn't her fault and she was in a bad position. I told her I would put in formal complaints and then to ACCC and FOS. She just silently agreed but could not offer more. So they must be under specific instruction not to offer anything more than what others have been offered here. Ie. $350 refund fee or 10000-20000 points.

 

[VAG newbie]

Also, does anyone know anybody that works for mass media? TV station, ACA or newspaper? I'm sure Citibank would love such publicity.

 

[paultiffen]

What's the rate for a FOS case? If it's 3K then they need the majority of people not to follow through on their threat to break even.

The ACCC could come in separately though to force a resolution and then they'd have lost goodwill and be back where they started

 

[yohy?!]

Also, does anyone know anybody that works for mass media? TV station, ACA or newspaper? I'm sure Citibank would love such publicity.

Tweet the Ausbt story to @ACurrentAffair9 - I imagine Citi is the lowest spending bank advertiser with 9 and they love a story on nasty banks so they might run it.

Someone needs to go on the show though and cry about their missed holiday (or appear in chains)

 

[orin]

Had a supervisor call me back.

Her line was that 6.2 only apply to Citi rewards earn and convert for cash, not for conversion to another reward points scheme. And that VA and SQ were the parties that increased the rate, so they have to pass it on and no notification is required.

I quoted the NAB ACCC case and she is aware of it, haha must be getting a lot of that by now, and also not much to say about FOS. She is downbeat.

She said she raised another complaint and a higher level rep will call me in two to three days. See where that goes. Took down her details incase ACCC and FOS needs to be involved.

 

[N860CR]

Are people speaking with Australian or Fillo staff so far?

 

[turnip666]

Had a supervisor call me back.

Her line was that 6.2 only apply to Citi rewards earn and convert for cash, not for conversion to another reward points scheme. And that VA and SQ were the parties that increased the rate, so they have to pass it on and no notification is required.

I quoted the NAB ACCC case and she is aware of it, haha must be getting a lot of that by now, and also not much to say about FOS. She is downbeat.

She said she raised another complaint and a higher level rep will call me in two to three days. See where that goes. Took down her details incase ACCC and FOS needs to be involved.

Does not explain why they halved the rate for QFF conversions from Citibusiness and not the direct sweep. Did QF increase their costs too? Why only one card not all of them?

Unfortunately these people on the phones are the ones that have to eat the S*** sandwich that their higher ups have designed.

 

[RayEarth2162]

Surely this is not dissimilar to NAB's case in 2002?

11 June 2002The Australian Competition and Consumer Commission has concluded its investigation of alleged retrospective point devaluation changes to the National Australia Bank's Gold Rewards Program, Acting ACCC Chairman, Mr Sitesh Bhojani, said today.
"Last month, the ACCC wrote to the NAB about changes it announced to the redemption rate for National Gold Rewards members who are also Qantas Frequent Flyer members following a request from the Federal Treasurer, Mr Peter Costello", Mr Bhojani said.
"NAB previously represented to consumers that NAB points could be redeemed at a rate of 1 National Gold Rewards point for 1 Qantas Frequent Flyer point. However, last month the NAB foreshadowed a rate change effective from the 15 June 2002, that 1.5 National Gold Rewards would be needed to redeem 1 Qantas Frequent Flyer point.
"If this change had taken effect, it would have devalued NAB points accrued before 15 June 2002 by one third. The ACCC was concerned that by retrospectively changing the redemption rate, NAB risked misleading consumers by misrepresenting the value, characteristics, uses or benefits of the consumer's National Rewards points.
"NAB has informed consumers that it will maintain the 1 for 1 conversion rate for Qantas Frequent Flyer points earned prior to their July 2002 credit card statement cycle. From July 2002 the conversion rate for new NAB points accrued after that time will be 1.5 NAB points for 1 Qantas Frequent Flyer point, reflecting changes made to other NAB rewards.
"NAB has provided the ACCC with a written response confirming this statement.
"Complaints made to the ACCC about loyalty programs indicate consumers are feeling misled by the promotion of these schemes, especially Frequent Flyer style programs that focus on the trips and special deals members can obtain, with limited mention of the restrictions imposed by the schemes' terms and conditions.
"Loyalty program promoters risk misleading consumers and breaching the fair-trading provisions of the Trade Practices Act 1974 if they:

• advertise awards that are not available as represented

• hide in the fine print or fail to disclose the truth about the restrictions imposed on the redemption of those rewards

• seek to retrospectively change programs or offers to the disadvantage of consumers.

"The ACCC will continue to monitor consumer complaints received about the operation and conduct of loyalty programs".

Can we ask ACCC to investigate Citi in this case? It is essentially a retrospective change in similar respect, ie points previously earned have now been devalued without notice.

 

[turnip666]

Surely this is not dissimilar to NAB's case in 2002?



Can we ask ACCC to investigate Citi in this case? It is essentially a retrospective change in similar respect, ie points previously earned have now been devalued without notice.

Already have. The more the merrier.

 

[lmere12]

Does not explain why they halved the rate for QFF conversions from Citibusiness and not the direct sweep. Did QF increase their costs too? Why only one card not all of them?

Unfortunately these people on the phones are the ones that have to eat the S*** sandwich that their higher ups have designed.

exactly the point I raised with them today, now have another case ID .

 

[bigray73]

Thanks Dave.

Count me in.

I can't PM until I've posted 4 more times