Citibank - Violation of FCRA?

What is the name of your state? GA

I had a credit card with Citibank (I asked them to close the account just recently because of this situation) which still has a balance.

I received my statment for February. I noticed the interest rate had been increased to a whopping 24.240%. I looked closer and found that they had included this message (normally where they advertise):

"The Annual Percentage Rate on your account has been increased due to one of the following reasons stated in your Card Agreement with us: you failed to make a payment to us or any other creditor when due, you exceeded your credit line or you made a payment to us that was not honored by your bank."

Since none of the above was true, I called them. They stated because of something on your credit report, the rate had gone up. She also told me I could not ask for a rate reduction on my account for 6 months. Needless to say, I wasn't happy with the idiots, and that is putting it mildly.

So, I ordered a copy of my credit reports, and to my surprise a collection account had been placed on it. I immediately disputed it, since it wasn't mine. Credit Bureau said it was verified (yea, sure). Now, I'm disputing with the collection agency and asking for validation. (still ongoing)

After reading the FCRA, this is my conclusion. (and I welcome all opinions on this) The section is:

§ 615. Requirements on users of consumer reports [15 U.S.C. § 1681m]

(a) Duties of users taking adverse actions on the basis of information contained in consumer reports. If any person takes any adverse action with respect to any consumer that is based in whole or in part on any information contained in a consumer report, the person shall

(1) provide oral, written, or electronic notice of the adverse action to the consumer;

(2) provide to the consumer orally, in writing, or electronically

(A) the name, address, and telephone number of the consumer reporting agency (including a toll-free telephone number established by the agency if the agency compiles and maintains files on consumers on a nationwide basis) that furnished the report to the person; and

(B) a statement that the consumer reporting agency did not make the decision to take the adverse action and is unable to provide the consumer the specific reasons why the adverse action was taken; and

(3) provide to the consumer an oral, written, or electronic notice of the consumer's right

(A) to obtain, under section 612 [§ 1681j], a free copy of a consumer report on the consumer from the consumer reporting agency referred to in paragraph (2), which notice shall include an indication of the 60-day period under that section for obtaining such a copy; and

(B) to dispute, under section 611 [§ 1681i], with a consumer reporting agency the accuracy or completeness of any information in a consumer report furnished by the agency.

According to this, Citibank has violated the act. They did not tell me which CR they used (it's not on all of them)
They did not provide me notice of my rights

Now, they did this to me back in 9/2001, but when I called them then, they said they would give me 3 months to get it corrected, which in fact I did, because the adverse information was inaccurate and it was deleted from my report. Although, again, at that time, they did not tell me which CR they had used, nor did they provide me notice of my rights.

I believe they are in violation, but I'm not sure as to the amount of damages I can claim or the amount I can sue them for. Anyone have an opinion on this?

I'm also quite angry at the fact that I have never once been late with them, nor anyone else. They have pulled my credit report almost every month, for the sole purpose of looking for anything adverse on it so they can raise my interest rate. Citibank's tactics or business practices STINK.

Anyone have any suggestions or opinions as to how I should proceed, or what I should do next? I haven't sent them a letter in reference to the violations yet, but I am going to as soon as I know I'm proceeding correctly.

Thanks.

[griz]

Unfortunatley I don't have any advise for you but I just wanted to share with you that I also requested my account with Citibank closed and within two weeks they had turned it over to collections. They had allready increased the intrest because I was late once before. I had no idea that they would turn it over to collections when payment was only two weeks late after closing the account. I must say the CA's they use do not follow the laws either. I think this is going to be a long hard road to resolve my account I hope you have better luck. Maybe there will be some class action against Citibank some day.

Wow! I thought it was just me! I, to am having problems with a Citibank account. Mine is closed as well(at my request), and was turned over to collections when I missed a payment one month (admittedly my fault, but I did send the extra payment the next month). Is your collection agency Allied? that is who keeps calling me. They want me to "settle" the account with them, but would not provide a mailing address. They wanted access to my bank account, which I did not provide them. They never would give me a mailing address (I later learned that they most likely did this to keep me from sending a cease and desist letter), so I blew them off for a month. Probably not the right thing to do, but they ticked me off. Anyway, they called again today and I talked with them. They said that I COULD send payments to my regular payment address (imagine that), and she acted surprised when I told her that no one would give me a mailing address before.

Death2credit,

My Citibank account is current, I've never been late, and I am still making the payments. The account was closed at my request, because of their idiot actions. Citibank raised my interest rate solely based on the Collection Report on my credit card, which is not mine. They didn't give me a chance to dispute it. They didn't notify me of my rights when they took the adverse action. I believe have a good case against Citibank for violations of FCRA and unfair business practices. I've read several complaints about Citibank raising the interest rate based on credit report. I also see where there is a complaint people can fill out to join others in a class action against Citibank, which I have done. ([url]www.bigclassaction.com[/url])
I have filed a complaint with the BBB and the FTC. I have also filed a complaint via [url]www.planetfeedback.com[/url]

I don't take kindly to companies or individuals stepping on my rights and violating the law. I am dead serious about following this to the greatest extent the law will allow.

The inaccurate collection account on my credit report was listed by a collection agency named Anderson Financial Network, supposedly for the creditor Cingular. I've never had an account with Cingular. The only phone I've had was with Nextel, and looking back through my records, I had it at the time the supposed Cingular account was active.

I asked for validation from the CA and they sent me 3 copies of statements that have my name but with a address I've never had. I'm looking for a sample letter to send the CA that what they sent did not validate the account.

If anyone knows where I can find a second letter for this, please point me in the right direction.

Thanks

NC
Unfortunately, I'm in the same boat! My account with them is current, never been late and still 3k away from the limit. I closed it 3 months ago because they give me the same computer generated BS notice that you received.

This month, they are trying to hit me with another increase.

I have been all over reading Fair Debt Collection Act and FTC reports and FOIA - you name it. I have not been given any indication of what the increase is for. The ONLY thing it can possible be is some medical bills from my husband - mind you, it's just a portion of the 20% that our insurance does not pay.

Otherwise, my credit is spotless! This simply has got to be illegal! It would appear with so many of us complaining about problems with the same issue, someone would give a listen.

I have scoured Citi's site looking for the online version of what was in the Insert that came out several years ago about this and it is not there anywhere.

The odd thing is that I had medical bills on my credit when I received the card 8 years ago! It didn't seem to matter then.

I will certainly keep tuned to this forum and see what other information pops up.

Best,
Petra

[Ladynred]

Unfortunately, its NOT illegal for them to do this. They get away with this in their card agreement terms and the system is fixed in such a way that you are guilty until YOU prove otherwise.

IKYA, you can find validation letters at [url]www.creditinfocenter.com.[/url] However I wouldn't be wasting a LOT of time on the CA, I'd be all over disputing with the credit bureaus. If they 'verfied' that account when it clearly is NOT yours, then you have to keep hammering them to investigate PROPERLY. That IS your right under the FCRA. I'd be willing to bet they only 'verfied' with your name, and/or address and/or SSN. If its a clear mistake then you're going to have to pound on them with evidence that shows its NOT yours. Send them a demand letter, CRRR, for their procedural report - HOW they supposedly verified the account and the details of their investigation.

If you want more info or help on pressuring the CRA's, go to [url]www.creditboards.com[/url] - the 'veterans' from creditnet are there now and are well-versed in this kind of fight.

Petra1st - if you're being penalized for your HUSBAND's debts, you need to dispute as well. You do NOT live in a community property state and your husbands medical bills should NOT be on YOUR credit report !

Thanks Lady.

I found at sample of a validation request and sent it to the CA.

I haven't thought about pounding away at the CRA's, thanks for bringing that up.

While it's legal for Citibank to do this, they are still not following the FCRA law while doing it (615) and I'm not about to let them get away with anything.

So, while I have attacked Citibank and the CA at this point, I will start attacking the CRA's too.

There are so many ways to tackle these things, sometimes, it's information overload.

Thanks again.

[Ladynred]

No kidding !

Something worth noting. This account is not yours. By reporting inaccurate information, the CA is in violation of the FCRA - at $1000 fine PER VIOLATION. That means that for every month they report the inaccurate information its 1 violation - so it adds up quickly. Bring that to the attention of the CA - they likely would owe you a LOT of money - PLUS damages in the form of the rejected credit app and higher interest rates. Threaten them, and the CRA with a lawsuit and the $$$ and the may pay more attention to you.

There's a letter called 'the nutcase letter' which you can find at [url]www.creditnet.com[/url] and it may be at creditboards.com as well. It may be worth it to use it if they stonewall you.