In a move that will likely be replicated by its competitors, Citibank has begun charging annual fees on some credit card users. The new annual fee, according to a source who has received notice, is $60 and can be credited back if enough money is spent on the card over the course of a year.
This new development is likely a beta-test in which a range of customers will be slapped with a range of fees and terms. Once Citi is able to guage customer reaction, they may initiate these fees on a broader scale or drop the endeavor altogether. Unfortunately, figuring out Citi’s moves is never an easy task.
Charging an annual fee to customers who use their cards infrequently may be a larger trend this year-and one with consequences. Consumers who do not wish to pay annual fees will likely opt to close their accounts which can, in many circumstances, adversely affect their credit scores. Thus, just as the interest rate increases of 2009 took many excellent credit scores down a few notches, the imposition of annual fees may inflict even more damage, as the CARD Act leads banks to take actions that are essentially making America a subprime country.
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February 17th, 2010 at 1:44 pm
I will NOT pay any credit card company an annual fee. I really doubt that I would return to a company that even tried an annual fee and then relented.
February 17th, 2010 at 2:42 pm
I was one of their customers who opted out and could not care less what effect it has on my credit report, I do not want to be robbed by a greedy bank who cannot run it’s business properly.
February 17th, 2010 at 9:45 pm
Got citibanks mail on the other days. new annual fee: $60 start on April 1, 2010. So stupid high price! I will cancel my citibanks account in a few days. Stupid!
February 18th, 2010 at 9:07 am
I, too, dropped it like it’s hot. I’ve had that card for over 15 years, and they didn’t blink an eye after I told them I didn’t use it anymore and wouldn’t pay the fee. While I only carry one card now for emergencies, I have plenty of other cards sitting in a drawer, most with better rates and NO annual fees.
February 18th, 2010 at 9:28 am
I received this notice yesterday and canceled today.
February 18th, 2010 at 4:53 pm
These creeps tried to do this to me when I NEVER had to pay an annual fee and was never late with a payment. I closed the acct. Citibank can kiss my tuchis!
February 20th, 2010 at 4:18 pm
I’ve been a customer for 26 years and am seriously thinking of cancelling.
February 22nd, 2010 at 9:58 pm
My citibank card has been closed (day I got the letter) no matter the 11 years with them and no balance, but why keep something open I rarely use. Credit score will take a hit, which sucks. I’ll stick with my regular CC with USAA, awesome rewards and I can’t beat the rate! It’s funny that the rep at Citibank stated ‘we hate to lose a member with 11 years.’ Well I guess those years didn’t matter much…did it