Why would Citibank want to cancel cards in credit???? | Australian Frequent Flyer
Australian Frequent Flyer

Welcome to Australia's leading independent Frequent Flyer and Travel Resource since 1998!
Our site contains tons of information that will improve your travel experience.

Joining AFF is fast, simple & absolutely free - register now and take immediate advantage of these great BENEFITS.

Once registered, this box will disappear. And you will see fewer advertisements :)

Why would Citibank want to cancel cards in credit????

Status
Not open for further replies.

gregff

Member
Joined
Sep 2, 2006
Messages
106
I saw a change to the T&C's of my Citibank credit card that if a card has a positive balance (i.e. in credit for example to allow larger charges overseas) for over 45 days, they have the option of cancelling the card after trying to contact you.
Why ever would they want to do that?
I also notice that a missed payment now costs a $40 fee!
The 45 day canellation seems unexplainable (you would lose all your points).
 

one9

Active Member
Joined
Sep 14, 2005
Messages
599
gregff said:
I saw a change to the T&C's of my Citibank credit card that if a card has a positive balance (i.e. in credit for example to allow larger charges overseas) for over 45 days, they have the option of cancelling the card after trying to contact you.
Why ever would they want to do that?
I also notice that a missed payment now costs a $40 fee!
The 45 day canellation seems unexplainable (you would lose all your points).
Credit cards are not designed to be used as bank accounts.

1. When you have a credit balance, you are using your own money, which means the bank does not have the potential to earn interest from you.

2. By having a credit balance, you add liability to both you and the bank in the case where someone else uses your funds without your authorisation.

I think adding some extra funds so you have a credit balance now and then is fine (eg if you need to make a big purchase). But the banks don't want to see that your account is ALWAYS in credit (eg. in credit for 45 days!!).
 

Chicken

Active Member
Joined
May 9, 2006
Messages
976
I asked AmEX a similar question. Their answer was to prevent money laundering
 

johnsmith

Member
Joined
Dec 5, 2004
Messages
100
one9 said:
Credit cards are not designed to be used as bank accounts.

1. When you have a credit balance, you are using your own money, which means the bank does not have the potential to earn interest from you.

2. By having a credit balance, you add liability to both you and the bank in the case where someone else uses your funds without your authorisation.

I think adding some extra funds so you have a credit balance now and then is fine (eg if you need to make a big purchase). But the banks don't want to see that your account is ALWAYS in credit (eg. in credit for 45 days!!).

I use my credit cards as bank accounts and have not ever had any complaints, i would imagine that the banks would be more than happy to have use of my funds for 45 days rather than me using their funds for 45 days. I would hope that Citibank would send you the funds that you have in credit after they have closed your account.
 
Last edited:

NM

Moderator
Joined
Aug 27, 2004
Messages
15,811
Qantas
LT Gold
Virgin
Red
Flights
My Map
I have a CBA Mastercard that I used to use for overseas cash withdrawls a few years ago and have not used since. It has no annual fee but also no linked to the CBA Rewards program so I juyst keep it ticking along. Its has a $4.10 credit balance for about 3 years now. Hardly a candidate for money laundering :p.

I guess one day I might actually buy something with that card (perhaps a few packets of Tim Tams from Coles??) and zero out the balance. But for now I am happy for CBA to invest my $4.10 for their own benefit and carry the card as an emergency spare. So I hope they don't take the same policy and cancel it. I had better actually read the statement they keep sending me to check that I am not being given 45 days warning :shock:.
 
Status
Not open for further replies.

AFF on Air Podcast

  • Project Sunrise – AIR018
    Sat, 24 Aug 2019 16:12:31 AEST
      Later this year, Qantas will decide which aircraft it will use to operate non-stop flights from the east coast of Australia to London and New York – a feat it aims to ach ...
  • Choosing a Rewards Program – AIR017
    Sat, 10 Aug 2019 13:32:24 AEST
      If you’re new to the world of frequent flyer points – or moving to a new country – it can be difficult to know where to start. In this episode, Matt discusses the con ...
  • Travel Insurance – AIR016
    Sat, 27 Jul 2019 07:34:12 AEST
      They say that if you can’t afford travel insurance, you can’t afford to travel! In this episode, Matt chats to James Green about the importance of travel insurance, and ...
  • The Qantas Oneworld Award – AIR015
    Sat, 13 Jul 2019 02:07:50 AEST
      Learn how to fly around the world using your Qantas Frequent Flyer points as Matt chats to James Green, an award travel consultant at Frequent Flyer Solutions. This episode ...
  • Qantas Frequent Flyer Changes – AIR014
    Sat, 29 Jun 2019 00:40:35 AEST
      Last week, Qantas announced a major shake-up to its Qantas Frequent Flyer program. In this episode, former Head of Loyalty at Malaysia Airlines, Mark Ross-Smith, joins Matt ...

Community Statistics

Threads
82,508
Messages
1,911,279
Members
50,289
Latest member
Mariamwales
Top