Fill It Up? Sorry, Your Credit Card has been Cancelled

Gas CardsBaffled consumers at gasoline pumps on Oct. 21 learned that Citi had closed their gas credit card accounts without warning.
It is strange days indeed in the credit industry, and the move by Citi to shut down card accounts linked to gasoline purchases has even surprised seasoned industry observers. In a statement, Citi said it “decided to close a limited number of oil partner co-branded MasterCard accounts.” Those accounts include co-branding tie-ins with Shell, Citgo, ExxonMobil and Phillips 66-Conoco cards.
Citi mailed out letters Oct. 19, just two days before the accounts were shut down, informing customers of the action. In statements to media outlets, Citi would only say that it continuous to evaluate products.
Card companies generally have the right to close down accounts without warning, a right commonly found in the fine print of user agreements. The credit card reform laws set to be implemented in February of next year targets how and when card issuers can raise interest rates, charge fees or modify policies. But it doesn’t specifically remove the right of the card issuers to close accounts, virtually at will.
Despite the sudden closing of the gas card accounts, Citi has not discontinued the sale of these cards, which in many cases offers as much as 3 percent cashback rewards on fuel purchases.
See related articles:
Lawmakers Want to Push Credit Card Reform Up to Dec. 1
U.S. Seeks to End “Unfair” Practices with Reform Laws

Leave a Reply

Your email address will not be published. Required fields are marked *