Defined Terms and Documents

Example 8 - Unconscionable Conduct  -  Citibank Platinum Rewards Card, Citibank Classic Card and Citibank Simplicity Card

Three '0% Balance Transfer' Citibank credit cards with discretely concealed Spiders and a botched 'Important Information' schedule that is a disgrace to Citibank because it is error-ridden and unacceptable for a major global bank

The above primary webpage for the below three advertised Citibank Credit Cards promotes the 'Benefits' to existing Credit Cardholders with large Outstanding Indebtedness (on other Credit Cards that they own) to open one of the below '0% Balance Transfer Credit Cards.

Nine Spiders that 'Important Information' (below) reveals:

Unconscionably, Citibank presents the 'Important Information' in a narrow 'scroll down' panel in 8½ Arial font grey where the prospective new customer is restricted to reading only 10 rows at any time of a 60+ rows of 'Important Information' before having to scroll further down, thereby unable to view back up to the above clauses without scrolling upwards.  Below are 5 'print screens' that provide all the text in the 'Important Information' in its 'scroll down' panel.  Immediately, underneath the below 5th and final 'print screen' of 'Important Information' is the full text of the 11 clauses that comprise 'Important Information'.  These 11 clauses in fine print inform the Spiders and are misleading and incongruously repetitious. 

1.         Clause 3. notes that "All rewards are subject to the Terms and Conditions of the Citi Rewards Program."  However, it is impossible, even with Google, to access Citibank's Terms and Conditions of the Citi Rewards Program referred to therein.

2.         Clause 1 and clause 5 are identical.

3.         Clause 2 and clause 7 are identical, except that -

             *        clause 1 notes that "For additional cardholders an annual fee also applies, currently $90 per card."

             *        whereas clause 7 notes "For additional cardholders an annual fee also applies, currently $15 per card.

 

4.         What is the annual fee for an additional card for the Citi Classic Card?  Is it $90 p.a. or $15 p.a.?

5.         There is material repetition in clauses 3, 7 and 8 that could have been avoided to materially reduce the quantum of words within 'Important Information' if Citibank had defined 'Eligible purchases' (that is, made it a Defined Term) by using a capital 'P' and not a lower case 'p' for the word 'purchases' on the first usage in clause 3. 

6.         Below is my recommendation to reduce repetition:

Eligible Purchase means any Retail Purchase which is made by the use of a Card or any other means permitted by Citibank, excluding (but not limited to) transactions by way of Cash Advances, Balance Transfers, Special Promotions, fees, BPAY payments, purchases of foreign currency and travellers cheques, foreign exchange and ATM/ Bank charges, interest charges, finance charges, government charges, payments to the Australian Taxation Office, insurance charges, payments to Citibank loan accounts (mortgage etc), purchases in excess of limits on the Account, transactions made in operating a business and if the Account is more than $10,000 in credit only, all other transactions.

            Therefore clauses 7 and 8 could mere note Eligible Purchase as defined in clause 3 above.

7.         The fine print reveals that a balance component transfer may not exceed 80% of the awarded Credit Card Limit.

8.         The above advertised (3rd column) "up to 55 days interest free on purchases" doesn't apply if you carry a 0% Balance Transfer.  Therefore, the meter is running at 21.74% (or 19.99%) at every Purchase which is a Usurious Purchase Interest Rate and not obvious from the information listed under Citi Simplicity Card.

9.         Citibank's above calculation of 'Savings over 24 months' of $3,753 is based on the assumption that prospective new Citibank credit card customers are paying an average of 20% interest rate on their existing credit cards when many prospective Citibank rewards platinum Cardholders may be carrying Outstanding indebtedness much lower than 20% eg. 13%.

 

 

 

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Important Information

Fees and charges apply. Cards are offered, issued and administered by Citigroup Pty Limited. Terms and conditions apply and are available upon request. Credit Criteria apply. New cards customers only and cannot be used in conjunction with any other offers.

#Actual credit limit will be assigned based on our credit criteria, subject to confirmation that you earn a minimum of $35,000 per year for Platinum /Simplicity or $25,000 for Classic and your credit rating.

1. Your total balance transfers may not exceed 80% of your credit limit. The 0% p.a. interest rate applies to balances transferred with this offer at point of application and the balance transfer fee, for a period of 24 months. The 24 month promotional period commences once the balance transfer is processed. At the end of the balance transfer period, the interest rate on any outstanding transferred balance and balance transfer fee will revert to the variable Annual Percentage Rate for Cash Advances, currently 21.74% p.a. Offer ends 30 April 2017. Offer may be extended.

2. Subject to your acceptance you will be billed an annual fee of $49 in the first year. This will revert to a discounted annual fee, of $149, in subsequent years. For additional cardholders an annual fee also applies, currently $90 per card.

3. All rewards are subject to the Terms and Conditions of the Citi Rewards Program. Eligible purchase means any Retail Purchase which is made by the use of a Card or any other means permitted by Citibank, excluding (but not limited to) transactions by way of Cash Advances, Balance Transfers, Special Promotions, fees, BPAY payments, purchases of foreign currency and travellers cheques, foreign exchange and ATM/ Bank charges, interest charges, finance charges, government charges, payments to the Australian Taxation Office, insurance charges, payments to Citibank loan accounts (mortgage etc), purchases in excess of limits on the Account, transactions made in operating a business and if the Account is more than $10,000 in credit only, all other transactions. You must be a member of the airline and hotel loyalty programs in which you wish to claim airline and hotel loyalty points and have advised us of your airline and hotel loyalty program membership number prior to any such redemption. Membership of an airline and hotel loyalty program will be subject to the terms and conditions of that program.

4. Complimentary Insurance is issued and managed by AGA Assistance Australia Pty Limited (trading as Allianz Global Assistance) (AFSL No.245631 ABN 52 097 227 177), 74 High Street, Toowong QLD 4066 on behalf of the insurer Allianz Australia Insurance Limited (AFSL No. 234708 ABN 15 000 122 850), 2 Market Street, Sydney NSW 2000, and is subject to Terms, Conditions, and exclusions, some limits and excess may apply. The Terms and Conditions are available at www.citibank.com.au/complimentaryinsurance.

5. Your total balance transfers may not exceed 80% of your credit limit. The 0% p.a. interest rate applies to balances transferred with this offer at point of application and the balance transfer fee, for a period of 15 months. The 15 month promotional period commences once the balance transfer is processed. At the end of the balance transfer period, the interest rate on any outstanding transferred balance and balance transfer fee will revert to the variable Annual Percentage Rate for Cash Advances, currently 21.74% p.a. Offer ends 30 April 2017. Offer may be extended.

6. 5% cash back can be earned on all eligible purchases, made in Australia and internationally, of up to $1,000 spend in the first 90 days from account approval. Maximum cash back that can be awarded is $50. To qualify for the cash back, the eligible purchases can be made by both the primary and additional card holders. Eligible purchase means any Retail Purchase which is made by the use of a Card or any other means permitted by Citibank, excluding (but not limited to) transactions by way of Cash Advances, Balance Transfers, Special Promotions, fees, BPAY payments, purchases of foreign currency and travellers cheques, foreign exchange and ATM / Bank charges, interest charges, finance charges, government charges, payments to the Australian Taxation Office, insurance charges, payments to Citibank loan accounts (mortgage etc), purchases in excess of limits on the Account, transactions made in operating a business and if the Account is more than $10,000 in credit only and all other transactions. Charge backs, refunds or fraudulent transactions are not eligible to receive cash back. Cash back will be credited to the approved accounts within 8 weeks after the qualifying purchases have been made. Offer ends 30 April 2017. Offer may be extended.

7. Subject to your acceptance you will be billed an annual fee of $49 in the first year. This will revert to the standard annual fee, currently $99, in subsequent years. For additional cardholders an annual fee also applies, currently $15 per card.

8. All rewards are subject to the Terms and Conditions of the Citi Rewards Program. Eligible purchase means any Retail Purchase which is made by the use of a Card or any other means permitted by Citibank, excluding (but not limited to) transactions by way of Cash Advances, Balance Transfers, Special Promotions, fees, BPAY payments, purchases of foreign currency and travellers cheques, foreign exchange and ATM/ Bank charges, interest charges, finance charges, government charges, payments to the Australian Taxation Office, insurance charges, payments to Citibank loan accounts (mortgage etc), purchases in excess of limits on the Account, transactions made in operating a business and if the Account is more than $10,000 in credit only, all other transactions. Reward Points never expire while the card remains open and in good standing.

9. Your total balance transfers may not exceed 80% of your credit limit. The 0% p.a. interest rate applies to balances transferred with this offer at point of application and the balance transfer fee, for a period of 15 months. The 15 month promotional period commences once the balance transfer is processed. At the end of the balance transfer period, the interest rate on any outstanding transferred balance and balance transfer fee will revert to the variable Annual Percentage Rate for Cash Advances, currently 19.99% p.a. Offer ends 30 April 2017. Offer may be extended.

10. The maximum 55 days interest free period applies when you pay your balance off in full for two consecutive months. If you carry a balance on your credit card from month to month, the 55 days interest free period does not apply and you are charged interest once you make a purchase. No interest free period is available on Cash Advances or when you have Balance Transfers.

11. Conditions apply. Visit citibank.com.au/dine.

© 2017 Citigroup Pty Limited. All rights reserved. ABN 88 004 325 080, AFSL No. 238098, Australian credit licence 238098. Citi, Citi and Arc Design and other marks used herein are service marks of Citigroup Inc. or its affiliates, used and registered throughout the world.