Citibank readyCredit - Give yourself a present this xmas

[kaki]

What exactly did the response say?

Citibank uses the phrase, "As you do not wish to provide any further information that would assist ..." There is a deliberate omission that the 'information' is 'the details of how I spent the money' of which I maintain as a private and personal matter which is not subjected to disclosure. Also, the point of contention is that the eligibility for cashback should not be subjected to this disclosure.

 

[New Chump]

Citbank have now written back to me, once again making the same $500 compenation offer, noting:

"These transactions were not eligible spend because they did not purchase of goods or services [sic]. This information may not have specifically been advised in the marketing collateral received, however implied through use of the term "spend" in all parts of the Cashback promotional material...".

Well it's a tad hard to imply that when Citibank expressly defines "spend" to be "honoured cheques, cash withdrawals and retail transactions..."

I'll now tell the BFSO that I still feel aggrieved, abused and taken advantage of by Citibank's misleading and deceptive marketing etc :shock: and will ask the Ombudsman to issue a formal finding.

NC

 

[e_wolfe]

Hi all,
Here is a copy of my response to the Ombudsman regarding Citibank's offer:

Dear Mr xx_X,

I am writing to inform you that I am not satisfied with Citibank’s 17 March 2006 offer of $xx_X plus reversal of interest of $xx_X.
In relation to the transactions on my ReadyCredit account during the promotional period Citibank state on page 2, section (a) of their response that:
“These transactions were not eligible spend as they did not purchase goods or services”
I reject this statement completely as nowhere in the promotional material does it indicate that the transactions need to be for the purchase of goods or services. They further state in the same section that:
“This information may not have specifically been advised in the marketing collateral received, however implied through the use of the term ‘spend’ in all parts of the cashback promotional material”
The promotional material clearly and specifically defines the meaning of the word ‘spend’ as it applies to the cash back offer. In fact the promotional material makes it clear that there are three types of transactions that satisfy the requirements of eligibility for the cash back:
1. Honoured cheques – This is the category that my transactions fall under. Cheques can obviously be written for many purposes and are indeed a replacement for cash in most circumstances. In my case all the cheques were deposited to my home loan account.
2. Cash Withdrawals – A cash withdrawal can be used for any purpose including re-depositing the cash back to the account where it has been withdrawn from. The fact that cash withdrawals are specifically included proves that transactions need not be exclusively for the purchase of goods and services to be eligible for the cash back.
3. Retail Transactions – This category obviously covers the purchase of goods and services.


In addition, Citibank’s claim that the word ‘spend’ is used in all parts of the cashback promotional material is not correct. Indeed on the smaller promotional flyer it states that:
“For every $500 charged to your ReadyCredit account between 1 November and 31 December 2005, we’ll pay you $20*.”

At no time during the promotional period did Citibank seek to modify or clarify the terms of the offer. Each time I contacted Citibank during November 2005, December 2005 and January 2006 I was told that I would receive the cash back amount for my transactions. The only thing that changed each time I called was the date that they said they would credit my account with the cashback amount. Citibank acknowledges that I was told by them that I would receive the cash back on page 2 section (b) of their response.

I used my ReadyCredit account during the promotional period. My transactions meet the definition of spend as outlined in the terms of the offer and now I expect Citibank to honour that offer and immediately credit my ReadyCredit account with the $xx_X they owe me.

Sincerely,
xx_X

 

[New Chump]

A good, clear and concise response to the Ombudsman, e-wolfe.

It puts my waffled response (which I will not post here out of embarrassment) to shame.

NC

 

[dazzling]

Hi All,

By now CB has given their 1st response (approx 1/3) and then their 2nd standing strong, no backing down response (same repeat offer).

To date CB have not stood by their own T&C, instead they have been looking for weak excuses. Refusing to pay out in full.

It appears the BFSO are taking a biased view.

Now is the time that we do look for a "no win no fee" case by case law firm to assist.

Dazzling

 

[novacatz]

It appears the BFSO are taking a biased view.

Why do you say that? I haven't seen anything on this forum from BFSO yet.

I had the (dubious) pleasure of looking at the BFSO website today. They have a section with past rulings. The overall impression I get is that they follow the wording and law. There is some subjectivity required sometimes (e.g. how do you judge 'poor standard of service')

However, for the most part, they will follow the letter of the law before equity considerations and rarely consider put aside the wording of T&C/fine-print to consider equity.

Now, if you have a solid case - where CB clearly define spend as cheques out of the account then you can argue it and BFSO should agree. However, if there is some 'creative interpetation' required (ie. it isn't so explicit that a reasonable person would disagree) then the BFSO would look at equity then (and you will probably be rejected).

 

[e_wolfe]

Now, if you have a solid case - where CB clearly define spend as cheques out of the account then you can argue it and BFSO should agree. However, if there is some 'creative interpetation' required (ie. it isn't so explicit that a reasonable person would disagree) then the BFSO would look at equity then (and you will probably be rejected).

We all have a solid case where CB clearly define spend. I hope you are correct about the BFSO looking at CB own terms with regards to this offer and find in our favour. I have not as yet posted the details of my telephone conversations with a legal officer at the BFSO office. I think it is only fair to let the investigation proceed to conclusion first. However I will post the details at the appropriate time which may give further light to dazzling's comments.

 

[Mahtoh]

e wolfe, can you at least indicate whether it was positive or negative in terms of the case?

 

[e_wolfe]

e wolfe, can you at least indicate whether it was positive or negative in terms of the case?

I don't want to detail the contents of my conversation at this time. However, I will say that the conversation took place just before my post on page 4 in this forum on the 22nd of March 2006. Read the last part of that post and draw your own conclusions.

I will wait to see if the Ombudsman does the right thing in our cases before lodging a complaint with ASIC. Citigroup have just been acused of insider trading by ASIC. See http://www.abc.net.au/news/newsitems/200603/s1605732.htm
Why doesn't this surprise me. I'm sure ASIC would like to know about the other actions by Citigroup which I believe are illegal. That is making an offer to induce use of a credit product and then not honouring that offer.

 

[dazzling]

Well folks I wrote to ASIC, back in early February 06, as I thought they were the appropriate governing body to address this case.
*************************************************************
ASIC's response:

Your complaint concern's Citibank's refusal to honour certain transactions charged to your account during the recent Citibank Promotion.

This letter is a response to that complaint.

After careful consideration ASIC has decided that we will not take any action into the issues you have raised at this time.ASIC conducts an assessment of every complaint we recieve. In determining which matters we will select for further action consideration is given to a range of factors,including the likely regulatory effect of any available action.

Although we have not decided to investigate your complaint at this time, this does not prevent you from pursuing any civil remedies other wise available to you. Your legal advisor can provide you with more information about what other options may be open to you to pursue this matter privately.However, you may wish to consider contacting the BFSO. It is my understanding that the BFSO is currently in discussion with Citibank about a number of similar complaints.

*************************************************************

 

[kaki]

We have waited so long ... wemay well see this through to the end.

I agree taht the 'no win no fee' legal pursuit remains a real option.

I have made my strong response to BFSO suggestion to expedite the cases by asking the claimant to accept the offer. I particularly note that it is not to our advantage to make claims against misleading and deceptive conduct. If we do so, we have to demonstrate our losses as a result of following the deceptive and misleading direction. It is very likely that CB will argue that we have not suffered any loss from a zero baseline.

I argue now that BFSO has to rule whether a corporation like CB is allowed to make promises and not delivered. Also, whether CB is allowed to vary T&C after the conclusion of the offer. If both, and other minor points on conduct, are negative, then BFSO has to rule that I have been wrongfully denied payment of the cashback and hence orders CB to pay.

With regards to ASIC, it is a difficult one. Knowing very well how such statutory body works, I am not surprised. They need tro have enough quantum to be moved. This means public pressure or public outrage.

The other thing I am working on is to hurt CB where it hurts most ... financial business. This is rather slow I must say.

 

[kaki]

Update

i have just received confirmation that the Ombudsman office will proceed with the investigation. No case manager appointed yet though and no deadline indicated.

I have also been interviewed by a consultant from Slater and Gordon. i will find out soon whether they are interested to take the case up.

 

[e_wolfe]

Re: Update

i have just received confirmation that the Ombudsman office will proceed with the investigation. No case manager appointed yet though and no deadline indicated.

I have also been interviewed by a consultant from Slater and Gordon. i will find out soon whether they are interested to take the case up.

I also received a letter today from the Ombudsman with the same information.
When I spoke with Slater and Gordon I got the impression that they were wanting as many people as possible to register their interest so they could decide if it's viable to proceed.
I wonder how long it will take to be assigned a case manager at the Ombudsman's office?
Has anyone received a fair offer from Citibank as yet?

 

[jennim02]

Citibank

I am another poor sucker of Citibanks $160 so called Ready Credit Facility Fee. I lodged my complaint with Consumer Affairs almost the day i got the letter from Citibank. They in turn have dismissed it and forwarded it through to the banking ombudsmen. It has been nearly six months and i'm yet to hear what is happening.

I transferred $1001.00 out of my account in Feb - i've just received a letter saying that i have until June to spend the money. I am FURIOUS - if Citibank are now telling me that transferring the money out isn't spending i'm going to crack it.

Surely with so many people unhappy with Citibank SOMEONE or SOMETHING can help us win? I'm almost happy to see i'm not the only poor sucker who fell for the NO FEE EVER promise.

 

[dazzling]

Recieved my letter from BFSO advising that case will proceed to full enquiry.

May as well just sit back and wait.

e_wolfe .. no decent offer from citibank yet, just the same old smelly, recycled garbage !!!

 

[jennim02]

Also wanted to let you know i have screen dumps of the Citibank Website advertising the Ready Credit Account - This includes the FAQ section and T&C's - all saying there will never be any fees.

If anyone needs a copy please let me know.

 

[e_wolfe]

The other thing I am working on is to hurt CB where it hurts most ... financial business. This is rather slow I must say.

My workplace has over 200 people and I'm certainly doing my best to let them all know that Citibank can't be trusted. My negative comments about Citibank will only intensify if Citibank don't honour their terms. I am considering signing up to every forum I can find and posting about our experiences. If we make enough noise for long enough perhaps Citibank will realise that it makes sense to honour their own terms rather than lose so many potential customers.

 

[JohnK]

Also wanted to let you know i have screen dumps of the Citibank Website advertising the Ready Credit Account - This includes the FAQ section and T&C's - all saying there will never be any fees.

If you believed this then you are naive.

If you read the fine print on any contract you sign then you will notice that they have the right to change the T&C's at any time without your permission and that includes the "no fees ever" clause.

 

[Mal]

My workplace has over 200 people and I'm certainly doing my best to let them all know that Citibank can't be trusted. =.

Hahahaahahaha.

No need to preach to the converted

 

[e_wolfe]

If you believed this then you are naive.

I think it's completely normal to rely on terms and conditions.