Author Topic: Citibank Payment Arrangement  (Read 584 times)

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freedom2017

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Citibank Payment Arrangement
« on: May 13, 2017 02:58:55 AM »
Hello,

I am having an issue with Citibank and a payment plan I entered with them.  I was wondering if anyone was running into the same issues I am and what you did about them.

Backstory:

I was over the limit of $1578.64 and I wasn't able to pay that so they closed the account in October of 2016.  I had called them and informed them of my financial difficulties and that I could only pay the minimum due, that I had been paying prior to the account becoming over-the-limit.

During this time, Citibank has continued to report me as late, past due, and over-the-limit. My monthly payment was $64.00 a month and I continued to pay that, broken into 2 payment of $32.00 on the 10th and 22nd. 

My payment were set up with auto-pay.  (Yes, I have learned my lesson about auto-pay) In February I received an email from Citibank stating that my payment of $789.32 was due in a few days.  I immediately went online and changed the payment back to $32.00.  On the 10th Citibank withdrew $789.32 causing a number of things to bounce.  Phone conversations got me nowhere and the other autopay payment on  the 22nd was changed to $789.32 that they would not cancel.

My bank issued a stop payment and refunded me the amount of $789.32 a few days later.  Since I was getting nowhere with Citibank I complained to CFPB accusing Citibank of fraudulently withdrawing money without permission.  Citibank responded quickly and immediately issued me a credit for fees I was charged due to the unauthorized payment.  They still tried to do another auto-pay of $789.32 on the 22nd which was blocked by my bank.  Citibank charged me a $25.00 return fee.

I called them to get a credit of the $25.00 and again explained my situation.  I was told I could enter into a payment arranged of $70.00 a month due on the 22nd of each month and given the impression that I would be starting over.  I entered into the arrangement in good faith.

Citibank is still stating I am past due, late, and over-the-limit.  I wrote a letter to Joanna Baatz-Executive Response Unit (the same person that responded to the CFPB complaint) and asked why I was still being reported as paying late, past due, and over-the limit.  Her response stated that they are reporting "factual data" and will continue to report me as such.

This is not the agreement I thought I entered into.  What incentive are they giving a person to pay if you are still being trashed to the CB's?

Do I have any recourse?

Bruno the JDB Killer

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Re: Citibank Payment Arrangement
« Reply #1 on: May 13, 2017 03:01:34 PM »
You are paying late, past due, and over-the limit. Your payment arrangement doesn't change that fact. Most likely they'll get tired of this and sue you, or sell the account to a JDB. Did they violate the Texas Finance Code? (I seem to remember you are from TX) If they did, file for arbitration. Maybe that will get their attention.
I am not an attorney. Any information I post is strictly my opinion and should be treated as such.

freedom2017

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Re: Citibank Payment Arrangement
« Reply #2 on: May 14, 2017 11:08:10 PM »
You are paying late, past due, and over-the limit. Your payment arrangement doesn't change that fact. Most likely they'll get tired of this and sue you, or sell the account to a JDB. Did they violate the Texas Finance Code? (I seem to remember you are from TX) If they did, file for arbitration. Maybe that will get their attention.

Thanks for your imput Bruno. My mistake in being led to believe payment arrangement meant starting over and that's where my frustration comes in.  I wasn't told by entering into this payment arrangement that nothing would change.  I would need a copy of the phone conversation to prove what she told me and what I asked.

What's the benefit of entering into a payment arrangement if it didn't change how it is being reported?  I would have been better off allowing the account to be charged off.   I am not trying to get out of what they say is owed, I just want the payment arrangement that I thought I entered into honored. 

I will look into the Texas Finance Code violations and arbitration.  Thanks again!

Bruno the JDB Killer

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Re: Citibank Payment Arrangement
« Reply #3 on: May 15, 2017 01:35:26 PM »
Her response stated that they are reporting "factual data" and will continue to report me as such.


They are under no obligation to play nice with you. Letting them charge off the account doesn't change anything, except you get hit with another six months interest.
I am not an attorney. Any information I post is strictly my opinion and should be treated as such.

freedom2017

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Re: Citibank Payment Arrangement
« Reply #4 on: May 16, 2017 10:58:31 PM »
Her response stated that they are reporting "factual data" and will continue to report me as such.
They have an obligation to spell it out what you will receive when you enter into their payment arrangement, very misleading.

They are under no obligation to play nice with you. Letting them charge off the account doesn't change anything, except you get hit with another six months interest.

That's too bad when a person is trying to pay what they owe.  Several others played "nice" and didn't penalize for falling into hard times.

Bruno the JDB Killer

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Re: Citibank Payment Arrangement
« Reply #5 on: May 16, 2017 11:05:07 PM »
They told you what they would do, you seem to think you can interpret it to your own plan. You cannot. It isn't misleading when they tell you up front what they will do. They could care less about hard times.... we are discussing the law, which you seem not to understand.

Tell you what, write a full civil complaint to sue them and post it here. We'll tell you how well you did.
I am not an attorney. Any information I post is strictly my opinion and should be treated as such.

freedom2017

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Re: Citibank Payment Arrangement
« Reply #6 on: May 16, 2017 11:36:12 PM »
They told you what they would do, you seem to think you can interpret it to your own plan. You cannot. It isn't misleading when they tell you up front what they will do. They could care less about hard times.... we are discussing the law, which you seem not to understand.

Tell you what, write a full civil complaint to sue them and post it here. We'll tell you how well you did.

Why are you being so testy?  I am trying to learn about the law and what my rights are!  What law am I not getting?



Are you saying they don't have an obligation to tell a person what they will and won't do when you enter into a agreement?  That it is okay to misrepresent what the agreement is?  They didn't tell me upfront they would continue to report my account negatively.  The agreement paperwork with the agreement doesn't state that. 

Bruno, I wouldn't have wasted your time asking the question if I was an "informed consumer" and knew that they will continue to report me as past due, late, and over-the-limit.  I would have accepted it as fact and moved on. 

I asked if I had any recourse.  I will continue to look and when I find it, I will let you know.  Thank you again for your input.

Clydesmom66

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Re: Citibank Payment Arrangement
« Reply #7 on: May 17, 2017 12:08:07 AM »
Are you saying they don't have an obligation to tell a person what they will and won't do when you enter into a agreement? 

They are not required to cover every conceivable instance in the agreement.  The LAW only requires they document what payment amount they agreed to on what terms with you.  PERIOD.  The rest of the terms of the card agreement apply and you as the consumer are expected to know what they are.

That it is okay to misrepresent what the agreement is? 

They didn't misrepresent anything.  Your failure to understand the LAW on collections and reporting isn't their problem. 

They didn't tell me upfront they would continue to report my account negatively.  The agreement paperwork with the agreement doesn't state that. 

It doesn't have to say that.  The card agreement DOES.  Here is what happened:  you were over your limit by a SIGNIFICANT amount.  The actual amount that would have been due when that happened was the $1578.64 to bring the account down to the limit PLUS the actual monthly minimum payment of $64 for a total of $1642.48.  As long as your account stayed over the limit and OPEN they could tack on a $35 over the limit fee.  Since it was SO far over the limit they simply closed the account.  As long as you only paid the bare minimum based on not being over the limit you were not in compliance with the terms of the card agreement.  The auto pay automatically defaults to the NEW minimum due based on your being over the limit.  Regardless of your changing it.  (you got lucky they refunded the first fees) Then the payments got rejected which equates to late payment.

As long as the account is over the limit and you pay next to nothing vs. bringing the account current they are accurate in reporting you late, over the limit, and past due. 
Be VERY careful following advice from the internet! What worked for someone with thousands of posts on a message board may not work for YOU in your state.  Consult a lawyer when ever possible.

BellEbutton

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Re: Citibank Payment Arrangement
« Reply #8 on: May 17, 2017 12:46:24 AM »
Why are you being so testy?  I am trying to learn about the law and what my rights are!  What law am I not getting?



Are you saying they don't have an obligation to tell a person what they will and won't do when you enter into a agreement?  That it is okay to misrepresent what the agreement is?  They didn't tell me upfront they would continue to report my account negatively.  The agreement paperwork with the agreement doesn't state that. 

Bruno, I wouldn't have wasted your time asking the question if I was an "informed consumer" and knew that they will continue to report me as past due, late, and over-the-limit.  I would have accepted it as fact and moved on. 

I asked if I had any recourse.  I will continue to look and when I find it, I will let you know.  Thank you again for your input.

You know that the account was closed because you couldn't pay.  You also know that the balance included late and over-the-limit fees.  Paying the balance doesn't change those facts. 

If they had stated that they'd no longer report negative information, you'd have an argument.  But they didn't make that claim.   And considering they are allowed to report the information as long as it's accurate, they shouldn't have to explain that they're going to continue to do what they're legally allowed to do.

freedom2017

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Re: Citibank Payment Arrangement
« Reply #9 on: May 17, 2017 04:27:59 AM »
You know that the account was closed because you couldn't pay.  You also know that the balance included late and over-the-limit fees.  Paying the balance doesn't change those facts. 

If they had stated that they'd no longer report negative information, you'd have an argument.  But they didn't make that claim.   And considering they are allowed to report the information as long as it's accurate, they shouldn't have to explain that they're going to continue to do what they're legally allowed to do.

I am not disputing the past reporting, just the current reporting.   My argument was and is, I was led to believe I would be starting fresh.    It was my fault for not asking for  having that in writing. 

I guess I finally reached the right person.  I received a letter today from Citibank and if I do the following:

Currently, past due status is 24 days.  If I pay an additional $57.75 by the 22nd I will no longer be past due and June's payment will be reported as "on time".  : )  That' all I wanted!  It will report over the limit and will report as such until I reach the original credit amount but I can live with that.

When you have paid your bills on time all your "credit life" it's hard not to become emotional when you feel you have lost control.  I realize when I am dealing with creditors I need to take my emotions out of it and work this like any business deal.

Thank you again for your insight and help!

 

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