Two readers have forwarded us a second email sent out by Citibank today, but it’s not another vaguely worded PR blast from the CEO. Instead, this one announces that Citibank is adopting the zero-tolerance approach to late payments favored by the credit card industry—miss a payment due date and you’ll lose any interest rate discount(s) you currently enjoy.
Just got this email from Citi’s student loan business. Yes, I carry my loans with Citibank, but I consolidated when the interest rate was at rock bottom in spring of 2004. 3% baby!
Looks like if you post your payment one day late, Citibank will terminate any interest-rate deductions you have earned. I guess this is one of the “bold steps” Vikram is taking to shore up profits.
Anyone with loans with Citibank better make damn well sure they pay on time, otherwise it can cost them big time.
Dear Valued Student Loan Customer,
??We are writing to inform you about important changes to the terms of your loan.??To retain your borrower benefits with us, you must make and have your payments posted to your account no later than the scheduled due date. Any payment posted after the due date will result in the termination of such benefit. Interest rate reductions and other benefits do not apply during periods of deferment and/or forbearance and automatically terminate for payments returned for insufficient funds, loan delinquency, default, and/or the purchase of your loan by a guarantor.
Gosh, Citibank, we were kinda hoping your bold steps would be a bit more consumer friendly, you know?
(Thanks to Sean and Eric!)