Complaint Review: Citibank

This Could Happen to You

A swindler opens an account with AOL under an alias, but using your address and Citibank account number. You have no account with AOL. Citi fails to notice that the alias does not match the name on the account, accepts the initial monthly $28.90 charge from AOL, debiting your account in turn.

Upon receipt of your bank statement, you alert the fraud units of both institutions, contest this invasion of your Citi account and demand a reversal. Nonetheless, a second $28.90 debit hits your account. Much delay and bureaucratic incompetence ensues.

Eventually, Citi sends you an Affidavit of Dispute which you complete and return. You wait; after all, two pillars of American capitalism are involved and justice will surely be done. But nothing happens.

You call AOL and Citi, you write them, all to no avail. AOL claims that it has duly accepted a chargeback (reversing debit) from Citi, but will provide no evidence of such without a court order. (It later claims that all records have been purged).

Citi disputes that the chargeback took place, likewise offering no evidence, and cynically invites you in boilerplate responses to seek a remedy yourself from AOL with whom you have no business relationship!

AOL looks bad in this matter, but Citi looks much worse. The most benign reading: Citi has inexplicably neglected to initiate a chargeback to AOL (despite your affidavit), compensating itself with its debits to your account.

A less benign reading: Citi, its denial notwithstanding, enjoys the chargeback AND the debits, turning a $57.80 profit. In either case, Citi has egregiously betrayed your trust by refusing to undo the invasion of your account it has so carelessly allowed.

All this has happened to me; I remain stunned and out of pocket.

Lawrence
Montclair, New Jersey
U.S.A.