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Citibank Credit Card Charge Dispute Class Action Lawsuit
By Mike Holter
A federal class action lawsuit claims Citibank induces credit cardholders into paying for charges they are not contractually obligated to pay by falsely misrepresenting they have only 60 days to dispute a charge.
Under the Citibank credit card contract, customers who are dissatisfied with the good or services they purchased with their credit card have the right to dispute the charge and not pay the remaining amount due on the purchase. In order to use this right, Citibank credit cardholders must meet several conditions, including that they contact Citibank within 60 days and that they do not fully pay for the purchase.
According to the Citibank credit card class action lawsuit, however, Citibank contradicts this contract by telling customers who file a dispute after 60 days that they must pay for the purchase because they failed to notify Citibank in writing within 60 days of the charges appearing on their credit card statement.
Once the cardholder relies upon the representations made by Citibank and pays for the purchase, Citibank then informs the cardholder that since they have paid for the purchase, they have waived their right to withhold payment pursuant to the credit card contract. This constitutes breach of contract, breach of implied covenant of good faith and fair dealing, and unjust enrichment, the class action lawsuit states.
It is seeking actual damages, court costs, attorney fees and a Court order prohibiting Citibank from continuing its unlawful practice.
A copy of the Citibank Credit Card Charge Dispute Class Action Lawsuit can be read here.
The case is Pauline Dionne v. Citibank (South Dakota), N.A. n/k/a Citibank, National Association, Case No. 019152, Circuit Court for Palm Beach County, Florida, Civil Division.
Updated December 8th, 2011
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4 thoughts onCitibank Credit Card Charge Dispute Class Action Lawsuit
This is Silvanna Finnerty (Whitworth). I believe I am entitled to settlement check but you don’t have my address and phone number.
Who wants to know. 2083044159
January 31, 2018
Due to a previous fraudulent purchase from August 2017 from a pharmaceutical company in Georgia, I called Citibank on January 19, 2018 to inquire about suspicious activity and to ensure my account(s) were safeguarded against fraud and deception. During the conversation, the representative stated that as he reviewed my account and payment history, he noticed that I paid off balances way before the due date and that I had a $643.51 balance on my account. Upon receiving this information, I was alarmed, as I have always paid off balances before the due date to ensure no additional charges (and penalties) would be accrued on the account. Upon receiving the aforementioned information, I told the representative that I had sent a check in the amount of $643.51. He then told me that the check had not been received and that I was in danger of the account being late because the payment was due the next day. After receiving the information provided by the representative, I offered to pay off the balance by using my check card from my personal checking account. Upon providing the funds to satisfy the balance ($643.51), the representative from Citibank assured me that my account was at 0 (zero) balance.
When I viewed my checking account transactions the next day, I noticed that not only was the $643.51 check card payment taken from my account, but an additional $643.51 (check payment) was taken as well. Citibank had received the check I sent and both (check card payment and check) were taken from my account, totaling 1,287.02. When I called Citibank to inquire as to why I was told during my previous call that they had not received the check payment, the representative apologized and offered a refund ($643.51) of the additional funds taken from my checking account.
Three days later (January 22, 2018), I received another statement for $588.37. As always, I immediately paid the full amount and was assured that the account was at 0 (zero) balance. As I carefully reviewed the statement for a second time, I noticed that the fraudulent pharmaceutical charge in the amount of $79.87 that was supposedly had been rectified months ago by Citibank appeared again on the statement, which prompted me to contact Citibank again (at which time, I began to become suspicious of Citibank practices). When calling Citibank, an automated service indicated that there was a balance due. Please note as mentioned above, I NEVER leave balances on my account. I always paid in full. There was never a revolving balance. After hearing the automated service, I waited to speak with a representative regarding my account. The representative told me that there was a balance of approximately $1,287.02 on my account due to requesting a refund. I was shocked! I explained to the representative that the refund was due to overpayment. She then stated that I had “charges” and that I owed Citibank $1,287.02. Immediately after speaking with the representative, I asked to speak with the accounting supervisor. Channer (the accounting supervisor) explained to me that since I requested a refund due to overpayment, I owed Citibank $1, 287.02. By this time, I was emotionally exhausted after explaining to Channer (and the previous representatives) that it was within my right to request $643.51 of the funds back into my checking account due to overpayment (check and check card). Channer became frustrated with me and used condescending analogies to defend Citibank’s reasons for the charges; at which time, I requested to close my account due to being treated extremely poorly and unfairly. Channer then stated that I would not receive my Costco rewards if I closed my account. By this time, I was emotionally drained and was overcome by anxiety. I then contacted the executive office of Citibank and spoke with “Kelly.” Kelly stated that she will “comb” through the account and call me back after she investigate the charges.
I am disappointed and shocked that Citibank would treat customers with no regards. I was a customer who had a perfect credit history with Citibank. I always paid off balances before the due date and was never late on a payment.
I respected my relationship with Citibank and showed my appreciation by ensuring all accounts were paid-off in full each month. I am saddened that I was not respected and regarded as a valued consumer. I received poor customer service rooted in deceitful, malicious and add-on practices. My experience was emotionally debilitating and unfair. I am requesting a third-party thorough investigation along with a response and apology.
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