Credit Crunch Hits Home, again - Absurdly

This is ridiculous. I have been a Citibank Credit Card customer for 11 years. I run all my bills through it, and it's the only card we really use. It was quite convenient. All of our regular bills get automatically paid with the card, we pick up airline miles, and have one central source of record keeping. I pay the balance in full at the end of every month, and don't carry a balance.

A couple of years ago, they wanted to save money and switch to all electronic communications, and even offered an incentive to do so. About a year ago, they moved customer service overseas to save more money. Earlier this year, I started having problems with their electronic communication. They are supposed to send me an e-mail stating, you card is due in 5 days (or something like that), and I stopped getting those e-mails. So, in a bunch of months this summer, the account went between 2 and 10 days overdue - but awlays paid in full. I'd call and complain that e-mail never went out, and I'd get some incompetent person who couldn't help. Meanwhile, Citi is racking up fees on me. Finally, I get sick of it, and put the card on Auto-Pay in ealy August.

In October, I get an e-mail that my account if over 30 days past due. How can that be?

I call and speak to more incompetent customer service reps, and finally they conclude that it doesn't look like Auto-Pay withdrew the funds for September. Oops. Sorry. So over the phone, at Mr. Stellar Customer Service Rep's advice, I pay the whole balance - September and part of October. Frankly, I don't want to be charged finance charges on the October balance. He says he'll fix it and call back in a couple of days to make sure no fees were attached. Crisis averted ... or so I thought.

When I get my October Statement, I find that I was debited TWICE - once on the phone and once on Auto-Pay. I now had a multi-thousand dollar CREDIT! And that it turns out isn't the worst of it.

Today, I get an e-mail that I am within $5000 of my credit limit. How can THAT be? I have a credit balance on the account, and I've never been ANYWHERE near my account limit, EVER.

I call again [surprsingly, I get an American agent] who transfers me to the accounts department. "Oh, you didn't get the letter?" Ummm, No.

Apparently, since my account had an over 30 days due, it got flagged. Since there were also a couple of delinquencies over the Summer, combined with an over 30 day delinquency, my credit limit was reduced to less than 5% of the original amount.

I can get it reversed, but it can't be done without six months "clean" record. No appeals process, no notification. Nothing. Nice job Citi, way to manage your "risks."