Citi debt settlement programs.
Citibank is also one of the more difficult credit card companies to work with. However, they do offer several programs to consumers, including debt settlement in somewhat rare cases. So while they may not be easy to work with and it can be challenging to get help from them, it is worth a shot in trying to deal with them to reduce your credit card debt.
Find examples of debt settlement programs from Citi
The consensus with Citi customers is that you need to let your credit card debt go unpaid for at least 120 days before they will consider settling. So while it is always risky to not pay a bill for that long, it may work in your favor over the long term. But beware of the risks in not paying for that long as there are still no guarantees to rececing help from the company.
- One customer had about $10,000 in debt with Citi. They went about 60 days past due and Citi said that they would only settle if they had a permanent disability or terminal illness. The person then let the bills go unpaid for about 70 more days (for a total of 130 days or so), and that is when a settlement was offered to them.
- Another person had 11K in credit card debt and they were paying $560 per month in interest, fees, and other expenses. After they did not pay their bills for 90 days, they mentioned they would like to eventually settle the debt and the customer service representative collected information from them and had them apply.
The bank never called back, but they received a phone call from a debt collector, United Collection Bureau (UCB), a few days later. They did semi harass the customer, but ended up offering a $5,600 settlement after the customer called a manager complaining of the treatment. So it ended up being about a 50% savings on the offer presented to them.
- Another example of Citi settling was at about 55% on several thousand dollars. They also provided this customer 12 months to pay off the debt, which is a long time,
- A customer of Citibank had $26,000 in unpaid bills on their credit card statement. Citi offered them a debt settlement program that would have eliminated 80% of their debt, but would give them 3 years to pay it off. They refused the offer, and now are being sued. This person settled with another lender they had (Chase) for about 20%, and are trying to get the same offer from Citi.
- Some households use Citi for both regular banking, check writing, and their credit cards. In one instance, a customer owed about $10,000 on their credit card and were struggling. They told the representative from Citi why they were behind and what they are doing about it. They also mentioned the other accounts, which they were considering to close. So Citi eventually offered a 20% reduction on the card only if they continue to use their other lending products. So combining services may sometimes help in pursuing a settlement.
- One family that used the bank for over 10 years had some employment problems. They then fell about 90 days behind on their credit card. After this time they tried to find some type of settlement or abatement until they found another job. Citibank worked with them on a settlement package by both reducing the debts owed and lowering the interest rate.
What other programs are offered?
So it is possible to get assistance from this lender, though it may arguably be more difficult than some other companies. In addition to these debt settlement programs, Citibank also offers other hardship plans. Click here to learn more about other options. For example, they have been known to offer forbearance, loan workouts, interest rate reductions, modifications, and more to help make a debt payment more manageable. The contact information is (866) 936-4814.