Can someone clarify?

I have had a change of terms and conditions from my Citibank Credit Card which says "

We will also charge you a top up fee

where the amount of interest charged to your Account on any statement is

less than £1 and the fee will be the amount required to make the top up fee

plus that interest equal to £1. Interest on the top up fee and any billed

interest will be charged at the standard rate for purchases.".

Does this mean that if I pay off the whole balance each month I will still be stung for the £1 'top-up fee'?, because the amount of interest is less than £1 (ie zero)?

We will also charge you a top up fee

where the amount of interest charged to your Account on any statement is

less than £1 and the fee will be the amount required to make the top up fee

plus that interest equal to £1. Interest on the top up fee and any billed

interest will be charged at the standard rate for purchases.".

Does this mean that if I pay off the whole balance each month I will still be stung for the £1 'top-up fee'?, because the amount of interest is less than £1 (ie zero)?

Hi --- I take that to mean that if say your statement only shows interest of 50p in a month, that you will then be charged another 50p top up to make it to the £1 .... And of course the interest at the purchase rate on that 50p ?

On the other hand where there is no interest at all charged on your monthly statement, then that charge would not apply.

That's the way I understand it, otherwise they would have to declare that there is a new minimum fixed charge of £1, whether the card is used or not.

What you have to do is make sure that even 1p does not appear in interest, or they will apply a charge of 99p fee (plus the interest at the purchase rate ?), to round it to the £1

I have to agree they could have phrased it in plain, easy to understand terminology. !!

I just noticed that on my notice to cardholders. To me it sounded like a new £1 a month charge. I hope that conmankiller is correct.

I have been paying my balance off in full and I like the very good fraud detection that they have so it would be a shame to cancel this card if there is a £1 fee

Will you be charged £1 top up fee even if you pay off the balance? Yes! Read it again... it says "We *will* also charge you a top up fee..." The conditions for this charge are "..where the amount of interest charged to your Account on *any* statement is less than £1..." So if you have paid off the balance, your interest is then "less than £1", so you will be charged.

This notice is notice of a minimum charge, and according to their terms and conditions they are telling you with at least 30days notice. So you can't complain when the charge is applied.

Basically, for anyone paying their balance in full each month this is a £12 annual charge. For anyone incurring interest on their account, the interest is offset against the £1 top up each month. If they charge you more than £1 interest a month you won't notice a change.

Have a look at this article on the same topic:

http://my.telegraph.co.uk/wwp/april_2008/you_will_be_interested.htm

I believe this applies not only to an AA Advantage Card with Citi bank, but across all Citibank credit card holders as the title on the document is "Notice to Cardholders Changes to your Terms and Conditions and Insurance Policy documents". There is no distinction to the type of credit card held.

Also, a point that further underpins the fact that this is a real charge - the phone menu of Citibank credit cards now has an extra menu (not at the top level) for people wishing to cancel their cards! People are cancelling this card en masse!

I hope this clarifies the issue :)

Regards,

/small print

Consider complaining about the wording to the OFT under the Unfair Terms in Consumer Contracts Regulations 1999 (UTCCRs), it also includes regulation on unclear terms in that terms should be in plain language, which is not the case here.

http://www.oft.gov.uk/advice_and_resources/resource_base/legal/unfair-terms/

forumfan:Sneaky way to charge 12 quid a year!

Exactly ---That really annoys me.. when they haven't even got the balls to tell you in plain English, that they intend to rip you off. !!

Report them on principle, it will make them loads of paperwork and helps to create jobs. : - )

As stated previously, the Citibank Card phone menu had the option to "Close account" added to it, indicating that people were fleeing the use of their cards, and the charge is a very real thing.

Now, that menu option has been raised much higher up in the menu, indicating the increased use by customers in getting rid of the card, and emphasizing further that the charge is very real indeed.

I'm not sure if they charge any more than normal for making the phone call to close the account (i.e. hit you with a £12 phone call, to make up for the money they'd lose when you close your account) but use of an equivalent land line phone number from the saynoto0870 site combined with free land line calls can eliminate such a possibility.

Prudence is advised, as we've clearly seen they can be sneaky in giving notice of charges!

Whoever came up with this nonesense needs to be rewarded!, the address to cancel your card is:-

CITICARDS, Citifinancial Europe PLC, PO Box 49920, London, SE57ZF.

Just cut up your card and send it back with your name address and signature included.

The close account option on the customer service phone menu was just going dead today, hopefully it got too busy.