• Report: #529087
Complaint Review:


  • Submitted: Thu, November 26, 2009
  • Updated: Thu, November 26, 2009

  • Reported By: Mark O — Redondo Beach California United States of America
1000 Technology Dr, MS 639 O'Fallon, Missouri United States of America
  • Phone: 8666458767
  • Web:
  • Category: Banks

CITIBANK N.A. Citibank Abruptly and Summarily Reduces HELOC Credit Limit Based on Blanket Appraisal O'Fallon, Missouri

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Citi imposed a sudden and unannounced reduction in
the credit limit on my home equity line of credit source account. My original
credit limit was $218,000. The bank summarily and abruptly reduced and froze it
at $128,000. I've never been late on a payment. My Citi credit-account balances
have always trended downward, historically, and I have a high credit score. By
suspending my credit without notice, the bank has deprived me of access to a
line of operating credit that I need to live and perform my freelance job.
Unfortunately, I've been parking all of my extra cash in this account -- all
paychecks and other receivables. I made a large payment/deposit of $17,250 to
bring down the balance. This was all of my monthly cash buffer. I used the
account to escrow my own property taxes and to save my quarterly income-tax
payments. After depositing checks, I also would then use the account to pay my
mortgage and HOA dues. All of this cash is now unavailable to me and causes me
extreme financial hardship. . [continued below]....

The bank says it's due to a decline in overall property values in my area. I received no notice of property-value reappraisal. I received no advance notice in writing of any kind. I called the Citi HELOC toll-free number and spoke with a customer service rep on 11/13/2009. I was then transferred to Ben, employee no. 7472657, who informed me of the situation and told me that Citi had the right to reduce my credit limit without notice. He instructed me to write a letter appealing the decision, which I wrote and mailed with delivery confirmation on 11/13/2009. I then went down to my local branch (Pier Ave., Hermosa Beach, Calif.) on the same day and spoke with Manuel (Manny), the loan officer on duty who basically reiterated what the others had already told me, and provided the added detail that the property had been subject to a blanket revalution -- from $500,000 down to $345,000, which I vehemently dispute (the property is in Hermosa Beach). Manny helped me by transferring the remaining eligible cash balance (approx. $630) from the HELOC into my checking account. He then offered to make me a personal loan in the amount of $10,000 at a much higher interest rate.

On 11/24/09, I complied with the stipulations outlined in the Citi appeals process -- submitting to a $350 home appraisal by LSI, which valued the property at $415,000, and sending Citi my most current mortgage statement showing the current first-loan balance of $138,000. This puts my loan-to-value ratio at 64%. We'll see what happens next. I'd like to get the credit line restored or, at the very least, to recover my $17,250 so I may continue paying my living expenses.

This report was posted on Ripoff Report on 11/26/2009 11:47 AM and is a permanent record located here: http://www.ripoffreport.com/reports/citibank-na/ofallon-missouri-63368/citibank-na-citibank-abruptly-and-summarily-reduces-heloc-credit-limit-based-on-blanke-529087. The posting time indicated is Arizona local time. Arizona does not observe daylight savings so the post time may be Mountain or Pacific depending on the time of year.

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