Attention CitiCorp shareholders. Your company is burning money, wasting it to no purpose other than stupidity and selfishness.
Click below to read all about it.
Apparently Principal Financial sold my mortgage to CitiMortgage last year.
No problem. I set up my bank to pay the mortgage electronically.
First of the month comes, and I find out the bank had to pay CitiMortgage by check.
I call. We talk. We spend a half hour on the phone. Then my bank calls CitiMortgage, with me on the line. We ask, me and the bank, "do you take electronic payments?"
Answer: No.
No skin off my nose. I can have my bank write a check, and mail it, and let CitiCorp wait two weeks for money that could easily be sent electronically. My bank wastes money, they waste money, but it's not my money.
Then I go to the CitiMortgage Web site and learn the rest of the story.
Seems they do have an electronic payment acceptance system, called "E-Z Pay". Which they want to charge me for.
Not only do they want to charge me for saving them money, they want to make me register with them in the process so they can market to me.
No thanks.
Think I'm buying anything from CitiMortgage, or any other CitiBank unit, for as long as I should live? Think I want you doing it?
Think again.
Now this doesn't seem to matter to the people at CitiMortgage. Maybe they figure, go ahead, buy your loan somewhere else, we'll just buy it from them and force you to do business with us.
This is arrogance taken to the point of lunacy.
And that, CitiCorp shareholders, is how your company is costing you money. They're wasting money taking checks, they're angering loan customers to no good purpose, and they're losing future opportunities because they're too lazy, greedy, and stupid to take electronic payments from other financial institutions.
Sheesh!
We now return you to your normal tech blog.
UPDATE: As you may see in the comments that follow, this is a general attitude around CitiCorp, that customers should pay CitiCorp for saving CitiCorp money. Clueless.
Dana Blankenhorn has been a business journalist for over 25 years and has covered the online world professionally since 1985. He founded the "Interactive Age Daily" for CMP Media, and has written for the Chicago Tribune, Advertising Age, and dozens of other publications over the years.
1. Dave S on January 19, 2005 03:40 PM writes...
You mention that, if they get paid by check, you will, "let CitiCorp wait two weeks for money that could easily be sent electronically." You can be sure Citi gets their money very fast even with a check. Their credit card operation converts checks received to ACH (automated clearinghouse) withdrawals from customer accounts, so that they get their money electronically the same day. Then, they destroy the paper check itself (as permitted by the Check21 law).
Perhaps the mortgage division does the same thing.
Permalink to Comment2. Jesse Kopelman on January 19, 2005 06:01 PM writes...
"Seems they do have an electronic payment acceptance system, called "E-Z Pay". Which they want to charge me for."
A problem I have in general with the banking industry lately is that they want to double dip -- charge you to use a service that if you use it saves them money. This goes back to the ATM which was originaly envisioned as a way to save money by needing fewer tellers. Now, ATM fees are a major source of revenue for banks. The new thing is making people pay to do electronic transfers. Transfers that cost the banks less to preform than paper based ones . . .
Permalink to Comment3. Jim on January 20, 2005 05:37 PM writes...
Yes, Citi just bought my MBNA credit card account. It was a "Linux Fund" card that I applied for two years ago through some marketing campaign to Linux users. Honestly the card was a good deal...no annual fee, a 9-month 0% balance transfer, and I could go to the MBNA website and schedule my monthly payments to arrive on the due date electronically, and free of charge. I just received notice that Citi has bought the account from MBNA, and that I have to mail my January payment to them, or pay to use their electronic service as you said.
I agree with you....I hope they paid alot for my account...which will be closed shortly.
Permalink to Comment4. Jerry on January 30, 2005 10:05 PM writes...
I have a CitiBank card that I will never use and never cancel. I do everthing I can to encourage their continued marketing to me.
Permalink to Comment5. Carri on January 31, 2005 02:16 PM writes...
I have recently accrued a second CITI credit card - when they bought out my WAMU account. I may be missing something??? I pay both of my CITI cards online every month for no charge. Granted it's not an automatic monthly withdraw....but it sure beats spending $.64 for postage.
And in direct reply to the comment concerning the outrageous charges for E-Z Pay???? I have several mortgages with different landing institutions...Citi is not the only bank charging for this.....better than waste time getting frustrated - simply send the check :)
Remember - you make the choice on how your paymetn is made.....and in this case, it appears that spending a few extra moments to mail in your check - rather than paying $XX.xx for EZ Pay - wouls be your wisest decision. Whether or not it costs THEM more money is not your concern.
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