I had a balance of $0 since late 2009. Hadn’t used the card in over a year; years prior was easily posting $15,000 a year on the card. Had gotten in the habit of using another card, so thought there was no harm in keeping the Citi account active, as there’s no annual fee right?

In fact, I don’t have an active physical credit card (you can do this by never activating a new card that is sent, in my case my old card expired and they sent me a new one, you still have a live account since your card/account # though is still valid). Only used their Virtual Account Numbers, which expire within 2 months (so having not created one, within 3 months there’s nothing that can be on a statement if the earlier statements are clear). I did this for 4+ years (last physical credit card used was with an expiration in 2005), but used Virtual Account Numbers (va#) for online purchases (last created a va# toward the end of 2009).

So no physical card for someone to use, no fraud possible since there is no valid expiration date for the issued unactivated card, and no active va#s…so no reason to check in on the account. Citi does not send statements if there is no activity on the account and the statement balance is $0. Heck, I checked my online account for 5-6 months after I last used a va# anyways and there were no statements as no balance was carried. So I stopped doing even that.

Which was, you guessed it, Feb 2010. (Talk about coincidence–I’m such a loser.) Plus, if something happens, I’ll be mailed a statement, right? As it stands, $0 balance and no purchases means a status quo of no monthly statement from Citi.

Citi makes the annual fee change. For some reason, I received no mail about the $60 change. Which they charged me 2 months later. So I should receive a statement right? Didn’t. And having stopped checking my online account since, well, I wasn’t using the account, I don’t see the activity there. And I’m thinking all is good, no statement, that’s the status quo. Should receive a phone call? They claimed they called 4 times–and they admit they never spoke with me in person and and always got a machine (how convenient for them).

So my no balance became a balance because of a membership fee they implement on a no annual fee card. They even start charging interest on the membership fee. Goes 4 months unpaid (that’s probably 90to120+ day late payment report FICO hit), and I imagine the “courteous refund” of the $60 and $2.07 in interest when they closed the account off is really probably being reported as a charge off (which would be another FICO hit).

The result–someone who hasn’t made a purchase probably results in a -200 FICO score.

I learned of this today. When I logged into create a va# for a purchase. Oh happy new year.

Wonderful world we live in where not actually having money lended to you, where you made no puchase, no buy, can result in such a huge detrimental hit to your credit score.

And if this banking slant isn’t enough, this also goes to show how screwed up FICO is, where a $62 charge created and CAUSED by the lender is the near equivalent of filing a bankruptcy by the lendee.

Thank you!
Jessica

I opened my statement today to see the $60 fee. After a few Google searches to find site like this I called customer service and cancelled. The first guy was Indian and wanted to explain why they were doing this. I told him I did not care and started to argue with him. He hung up on me. The next lady was American and gave me no trouble.

Philip, OKC, USA

In order for you to receive a credit for the fee, we would have to close your account and the fee will be reversed automatically on your June statement.”

So, I would have to close a 20 plus year account take a credit score hit and get a new account. I have never seen such horrible customer service! I am going to write a letter to the CEO or the head of CITI Bank and maybe my Senate Rep a letter.

Need Advise – what should I do next?