Citi Introduces Annual Fees on Inactive Accounts
While Citi warned us last year that it planned to tack on an annual fee to accounts that didn’t meet a specified spending threshold, that news became a reality this week as notices of this policy change poured into cardholder mailboxes. Effective April 1, 2010, an annual fee of $60 is being added to many Citi credit card holders’ accounts. That fee will be credited back to the account holder if spending reaches $2400 in the calendar year. Alternatively, the cardholder can opt out of this change and cancel their account.
The changes come as the enactment of the next phase of the Credit Card ACT on February 22 draws nearer, and banks look to find ways to offset the accompanying loss of revenue.
Follow Credit Card Watcher on Facebook
Follow Credit Card Watcher on Twitter
Bookmark this site
Argh! I have a citibank card. But I’ve already opted out of a previous rate hike (end of 2008). I haven’t received any notices. I wonder if they consider me a sinking ship and not worth the effort.
From reports I’ve heard, it seems that they’re only applying the fees to customers they deem unprofitable. In other words, they’re applying to cards where they think the cardholder should either start spending or close their little-used account.
One way or another the will figure out a loophole to make up the lost revenue.The same way visa did when they were forced to lower interchange rates for debit. Instead they pushed customers to use signature debit.