Credit card customers may see virus breaks
Consumer Reports analyzes complaints
Many credit card issuers have been stepping up to help cardholders who are staring down bills they suddenly can’t pay during the pandemic by deferring payments and waiving fees — if customers ask.
But when it comes to delivering COVID-19 relief, Citibank is doing a much worse job than other card issuers, according to an analysis of complaints to the federal Consumer Financial Protection Bureau by Consumer Reports.
Citibank, based in New York, took issue with the report.
“We take all customer complaints seriously and believe that Consumer Reports is grossly misrepresenting the manner in which we have supported our customers during this time,” spokeswoman Jennifer Bombardier said in an email.
The analysis looked at COVID-19-related relief complaints between March 16 and May 20. Of the 456 complaints, 168 — or roughly 37% — were about Citibank.
“No other bank even came close to Citibank in the number of coronavirus-related complaints,” said Syed Ejaz, financial policy analyst at Consumer Reports, the nonprofit consumer product testing and advocacy group based in New York.
The complaints about Citigroup included failure to waive late fees, surprise account closures and the inability to get help from customer service representatives. Many customers reported a disconnect between Citibank’s promised relief policies and the actual relief offered, according to the analysis.
Synchrony and Capital One had the next highest number of complaints with 40 and 38, respectively. JP Morgan Chase — the top credit card issuer in the country — had 32 COVID-related complaints.
Ms. Bombardier, at Citibank, said, “The complaints referenced in the CFPB database include calls related to merchant disputes, as well as calls received very early in the crisis just prior to credit card assistance being available. In total, the 168 complaints represent a very small fraction — .008% of the 1.9 million customers assisted.”
She added “80% of customers self-serviced” enrollment in assistance, and “industry data shows that customer satisfaction increased in April as it pertains to Citi’s response to COVID-19.”
Consumer Reports said the majority of the complaints came in April and May. On Wednesday, it wrote a letter to Citibank urging it to improve treatment of cardholders during the pandemic.
Meanwhile, Consumer Reports recommends credit card holders with financial difficulties reach out to card issuers to try to negotiate special help.
“Your credit card company may steer you toward the standard relief package . ... But depending on your financial circumstances, you may be able to negotiate additional help, such as reduced interest charges or setting up a modified payment plan after the relief period ends,” the report said.
“If you receive a COVID-19 accommodation, ask that your payments be marked current on your credit file, rather than delinquent. That will ensure that your credit score won’t be affected by late payments.”