Citibank Had A Program To Take Money From Customers?
from the positive-balance-means-it's-ours dept
A few years back, that I accidentally added an extra zero to a bill I paid for phone service. The company automatically credited the account, and a quick call got them to send a check with the overpaid amount. I know others who have accidentally paid a bill twice, or simply overpaid a bill because they didn't have the exact amount of the bill handy and wasn't able to look up the specifics. In most cases, the companies in question would just credit the difference. However, it turns out that Citibank had a different idea. It apparently decided that if you overpaid a bill, you really were just donating free money to Citibank executives' bonus fund. The company actually had a "sweeping" software that would scan customer accounts for a positive credit and simply wipe it off their account, transferring the money to Citibank's general account. This wasn't just a small thing either -- it went on for more than a decade, and the whistleblower who brought it up was fired. And, if you thought I was joking about the executive bonus fund, an executive from Citibank told investigators: "the sweep program could not be stopped because it would reduce the executive bonus pool." Of course, now the state of California has "convinced" Citibank to pay back all that money, plus some interest.![Hide This Hide this](https://ii.techdirt.com/s/t/i/topclose.png)
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Filed Under: positive balance, sweeping
Companies: citibank
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“Stealing from our customers is a business decision, not a legal decision.”
They think their business doesn't have to be legal? What a mafioso attitude. Does Citibank send someone to your house to break your legs if your account is overdrawn?
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Where's my stapler
They said I could keep my stapler.
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When will we see CEO and Boardmembers prosecuted?
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Not the only theft they do
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Re: Why not arrest them
sides the "war") are the CEO's and board members of the
financials along with the Real Estate flippers and
developers. They should be prosecuted and serve time
for playing with people's lives. My sense is that
perhaps they are supporters of certain politician's
campaigns and lobbyists who give the latter very nice
gifts.
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In the UK...
Apparently there are a lot of them, and it adds up to quite a sum of money...
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Bank error
The bank blamed the insurance company and the insurance company blamed the bank. The insurance company also had a copy of their deposit slip which showed the proper amount.
Thanks, ____ of America.
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California
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I Get Pissed
But that no one went to jail for this. Lord how come no one went to jail?
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Wow.
And seriously guys, we need to punish Citibank hard on this one. I'm talking to every person I encounter for the rest of the day on this.
Another tibbit many ppl don't realize. Financial companies will often hold money transfers an extra day or two, and soak up interest, which they don't share. Savvy customers can get a taste, if they scream at the right ppl.
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Financial Institution SOP
This was frowned upon by the executives at the national and regional level (these petty account pilfering escapades were always local at the time when everything was done by hand) until a centralized, electronic banking system made it possible to eliminate local indiscretions completely and now they seem to do it on a very efficient international scale.
The old standard was to empty the dormant accounts at the end of the year and use the proceeds for the office Christmas party. There are far worse examples I know of, but these cases are hear-say and possibly libelous and would scare you into keeping your money in the mattress.
Watch your accounts and, specifically, watch the service fees charged very carefully. I have caught several questionable charges over the years that would have cost several hundred dollars when added up. Most often it's simply a mistake, but if it's to the bank's benefit it will not be corrected until you complain.
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Citibank Sweep
The Federal Govt lead watchdog for this industry should force them to relinquish all of their credit card business to other parties fine them 500 million dollars and make them apologize in prime time on every major network for being the foul wretched creatures that they are.
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My Experience with Citi
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The perfect question
"When you were taking the money, did you know it was wrong?"
I've seen a variation on that question completely destroy a witness.
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What do you expect?
Your asking a greedy bunch of turds to act human, not gonna happen. You have the vote, its your money. Debit cards work great, and you dont get jacked with rate hikes, and crazy crap like this.
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Yet when I overdrafted, you're damn straight they sent the dogs after me, and eventually ended up taking $400 from me even after telling me that my account was closed, when I angrily told them I wanted my account closed, and thus overdrafting me even more when another charge went through that was made almost a month earlier. They said that the account was closed.. yet, they kept the account open, apparently to ensure that other charges would go through (that they were supposedly unware of).
Now, as I understand it, if a transaction is unable to go through, then it bounces and the business is the one that's supposed to come after me, but instead, the white knight that Wells Fargo is, they took the burden on themselves and charged me $150 on top of a $50 charge. God I love banks.
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Citibank, The narco's money launder service
http://www.mapinc.org/tlcnews/v01/n934/a05.htm
http://www.narconews.com/Issue1/martine z2.html
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Financial deregulation and lawlessness
It's the same old excuse: markets are the answer for everything. Just go find some history detailing things that happened right before a major economic reckoning. This gets tired real fast. Wake up. Doing business with an 800 pound gorilla is dangerous. If you must do so to survive: congratulations you have become a slave.
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Re: When will we see CEO and Boardmembers prosecuted?
McCain wants to extend the tax cuts for the rich & famous,
so his response would be 'business as usual'.
Obama is less likely to play favorites for the CEO's benefit.
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Escheatment
In general if a customer has had no contact with the bank in 3 years the state gets your money. You or your heirs can reclaim it but you have to go to the state not the bank to get it.
If I'm not mistaken it also applies to safe deposit boxes so don't think you can just leave your stuff at the bank and go get it 20 years later.
The laws are supposed to prevent exactly what Citibank did.
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Why NPR rules all . . .
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Plain theft
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Heres the rub . . .
Corporation arent people, the dont "think" or "feel" anything. They are simply a shell that provides cover for the actions of individuals. This is a perfect example of "everyone" was stealing, so who exactly do you blame. The CEO will say of couse he "had no idea" these things were going on and eventually some Jr Exec in accounting will end up "the ring leader" and plead to a misdomeanor and everyone will begin working on new ways to steal.
Corporations are not people, they are what people use to hide behind in order to behave in horribly unethical ways and still be able to look themselves in the mirror.
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Another reason to avoid banks
Only $10 a month, which is a lot better than having a bunch of $30 overdraft fees. And you can get a savings account with them too, though I haven't done it yet. Check it out if you want to get away from the banks, you won't regret it!
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Convinced them to pay...
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Re: Not the only theft they do
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Re: In the UK...
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Re: Financial deregulation and lawlessness
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Re: Heres the rub . . .
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City Bank Error BS
Here are the ecsamples:
Payment Due Date: 04/22/2008
Loan Type Loan Number Interest Rate1 Principal Balance Payoff Balance2 Payment Received
(Principal + Interest + Late Fees3) Amount Due
Consolidation 38 3.375% $15,775.50 $15,827.87 $80.35 $40.94 $103.90
Consolidation 39 3.375% $16,741.85 $16,797.42 $85.26 $43.45 $110.26
Totals $32,517.35 $32,625.29 $165.61 $84.39 $0.00 $214.16
Total Payment Received: $250.00
Minimum Payment Due2: $214.16
Payment Due Date: 04/22/2008
Payment Due if paid after 05/07/2008: $227.01
For this month I have paid a litle over or $250 (insted of $214 as scheduled), the total interest was $84.39. Bellow is the payment for $500 during single month, check it out how much interest they charged for that month:
Payment Due Date: 07/22/2008
Loan Type Loan Number Interest Rate1 Principal Balance Payoff Balance2 Payment Received
(Principal + Interest + Late Fees3) Amount Due
Consolidation 38 3.375% $15,339.01 $15,375.79 $178.30 $64.28 $103.90
Consolidation 39 3.375% $16,278.62 $16,317.65 $189.21 $68.21 $110.26
Totals $31,617.63 $31,693.44 $367.51 $132.49 $0.00 $214.16
Total Payment Received: $500.00
Minimum Payment Due2: $214.16
Payment Due Date: 07/22/2008
Payment Due if paid after 08/06/2008: $227.01
As you can see some how interest doubled - $500 total payment and interest charged was $132.49
And another exsample where I made payment for $750:
Payment Due Date: 06/22/2008
Loan Type Loan Number Interest Rate1 Principal Balance Payoff Balance2 Payment Received
(Principal + Interest + Late Fees3) Amount Due
Consolidation 38 3.375% $15,517.31 $15,575.98 $258.19 $81.42 $103.90
Consolidation 39 3.375% $16,467.83 $16,530.09 $274.02 $86.37 $110.26
Totals $31,985.14 $32,106.07 $532.21 $167.79 $0.00 $214.16
Total Payment Received: $700.00
Minimum Payment Due2: $214.16
Payment Due Date: 06/22/2008
Payment Due if paid after 07/07/2008: $227.01
I have paid $167.79 just for the iterest alon, in reality if I would just pay the minimum $214 and change than I would only pay around $85 in interest.
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Re: City Bank Error BS
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City Bank Error BS
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City Bank Error BS
Long story short, just to make sure I did check initial statements that I would normally get and would reflect interest form payment made to due day and it happens to be around $40 for each loan. Now when I am looking to the next scheduled payment (per statement) and how my payment was applied, I can see that each time they get my check before dead line in most cases at least a week, meaning my interest should be lowered from last payment made to the next actual payment, instead I see that this amount magically increases based on the amount they recived.
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Bank of America
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This is interesting.....
Think not!
I view this in essence as a theft pure and simple and any one that has a case should pursue with a vengeance.
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Re: Another reason to avoid banks
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Corrupt Banking Practices
Our unfinished business is searching for a National Conscience. Since this is not likely just a banking crime unique to Australia, something like this might have reared its ugly head elsewhere in the world. I saw somewhere in the past year the same scam is being run in the Eastern Bloc countries. With the increasingly tight credit globally, this could show up anywhere. When enough people can get it straight that banks are a criminal enterprise major changes might possibly allow peace to break out. Meanwhile it's billions for bankers - debts for the people
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Re: Re: City Bank Error BS
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Re: My Experience with Citi
I would never EVER bank with the bastards again.
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Re: Re: Heres the rub . . .
Well true to an extent, but I am talking about reality and expectations, not the corrupt ranting of Scalia and his law clerk Thomas
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Re: Corrupt Banking Practices
Hey didnt you Aussies have that cool cop/bank robber guy back in the day . . .
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Un-Justified Bank Charges
Well that has all changed with B of A's new policy and changes to the automation system. Now if you have a pending transaction with a negative balance we no longer have the free opportunity to transfer the funds. Now that option will cost you $35.00 for each negative in pending. Many would ask why not just protect with “overdraft protection”? We have overdraft protection on our home account linked from our savings; however we have an expense account that has limited use and two other accounts for our two oldest children.
The convenience of the multiple accounts was great as our kids could also run errands and we would transfer money for them. If we were at work and one of our children needed fuel for the car they would call and I would authorize an amount. Then later transfer the money.
With this change in banking policy B of A is collecting cash for nothing. If an item is pending NO MONEY is dispersed so NO LOSS to B of A. However, again B of A is collecting $35.00 for nothing.
If a members account is tight in these times and B of A takes money during a pending transaction here is what the bank will do; they will reverse a POSTED transaction taking an account further into the negative and leaving the previously posted transaction as NSF and again charging the fee for that.
Bottom line is B of A will and is taking money for the bank with no loss to them. I have no problem with a fee being charged for a paid NSF that has posted on the account and fully agree that is money earned by the banks.
If any others feel ripped off by B of A in this way then maybe we need to take some sort of legal action.
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illegal funds confiscation
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Citibank's Mortgage company does same things....
I had a mortgage through them, and accidentally paid my monthly payment twice in one month. I realized my mistake soon after the second one, and called right away to get one of them back. I was told they would send me a check for the extra payment. So I waited a week, nothing came. So I called again, and was told it was in processing. Meanwhile, other bills I had paid were getting to the bank and getting overdraft fees. I explained to the bank what happened, and luckily they agreed to waive any overdraft fees for until my next payaday. Again, I waited for my refund, nothing came. Finally, I called again, and was told there would be no refund because it was after the 15th of the month, and the extra money was already applied to my next month's payment! What the ....!! I was so mad! Were the first 2 people LYING to me?? As soon as I could refinance my mortgage with someone else, I did. I'd be damned if Citibank was getting any more of my money!
The kicker is, the only reason I paid twice is THEY called ME to say they never got my check and made me pay over the phone, so I thought I forgot to pay them! And they went ahead and cashed the original check before I could cancel it. Worst customer service I ever had!
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Citibank Predatory Lending
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Citibank Theft
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Banks Suck
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Not as greedy
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GOOD
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If you don't trust banks
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Re: Banks Suck
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http://www.facebook.com/pages/AccountNow/27559803065
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Re: Banks Suck
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This is atrocious!
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