Posts Tagged 'customer'

Citi adds $60 annual fee

Citi's annual fee

Bad news if you’re a Citi credit card customer, says Connecticut Watchdog:

Many Citi cardholders are receiving letters about a $60 annual fee that is being added to their account effective April 1, 2010. If consumers make $2,400 in purchases during the year, then the annual fee will be credited back to their account.

It appears that Citi’s test of adding an annual fee to a small percentage of their customers in August of 2009 proved successful for the issuer. At that time, Citi began charging some cardholders an annual fee of $30 to $90 unless they spent at least $2,400 per year. Now a far greater number of customers are receiving this notice.

A representative from Citi says they’re imposing the hefty annual fee to “maintain the quality of our service amid the rising cost of doing business.”

So they mess up the economy, and you pay. Get it?

I first saw this on a Simple Dollar post, where a long-time Citi customer got the same letter, despite his years of loyalty. You can read the full letter at the Consumerist blog.

Is that any way to treat your customers?

We treat our members a little differently. To get our perspective, visit WeUnderstand.org and let us know what YOU think of all this annual fee nonsense.

Seattle newspaper: Credit unions put members first

The Seattle Post-Intelligencer says there is one important lesson to be learned from the financial weirdness going on:

Despite the interrelated nature of the finance sector, credit unions are a safe and stable place to put our money. We ignore at our peril the lesson of the recent relative stability of credit unions…It is not just the fact that credit unions have better rates and didn’t indulge in precarious behavior. In credit unions [members], not investors, are sovereign.

Eric Bowman writes that the “financialization” of our economy – where money is made by moving funds around, not by producing anything of worth – is partly to blame for the housing, credit, and stock market mess. When banks strive for profit and not service, they make risky decisions.

Bowman argues that, by focusing on service, credit unions stay healthy for the long-haul.



American 1 Federal Credit Union