In Reply to: Trump May Launch Missiles from Warships into California this Frid posted by mh on October 16, 2025 at 09:59:36
When Brad Collett heard about Citi’s new Strata Elite credit card—with perks like airport lounge access and a dedicated service line for top-tier customers—he decided to splurge on his first premium card. The customer-service nightmare that followed convinced him to file his first complaint with federal regulators.
Across the country, Citi Strata Elite customers say they have been locked out of their accounts for weeks, unable to make purchases or redeem rewards that cost an annual fee of $595. To unlock the cards and rewards, the bank is requiring customers to submit an income-verification form from the Internal Revenue Service.
The Strata Elite’s launch this summer was supposed to mark Citi’s re-entry into the premium-card market, giving it a foothold to compete with American Express’s Platinum card and the Chase Sapphire Reserve card. The segment has drawn card issuers because wealthy customers are more willing to pay high fees and spend heavily, generating lucrative interchange revenue.
In a statement, Citi said it regretted “the inconvenience some of our cardmembers have experienced” and that protecting accounts was its top priority.
“We are continuously assessing our processes and communication for improvement and are committed to effective resolution,” the bank said.
Citi declined to say how many customers were affected by the account freezes or what prompted them.
The lockout has been especially frustrating for Collett, who works in IT. Before applying for the card, the highest annual fee the 29-year-old Texan had paid for a card was $99. Now he and other cardholders who have been locked out of their accounts fear they won’t meet the spending threshold needed in the first three months to earn the sign-up bonus Citi advertised.
For about a month after receiving his card, Collett used it for everyday purchases to reach that spending target. Then the card suddenly started getting declined. When he checked the Citi app, he saw an alert saying he needed to submit additional documentation. After mailing in the requested IRS form, he was told he wouldn’t be notified when his account status changed.
“It was a game of checking the app every day to see if I could finally use my card,” said Collett, who filed a complaint with the Consumer Financial Protection Bureau in September. “It was just ridiculous on their side.”
In a written response to Collett’s complaint reviewed by the Journal, Citi said credit-card issuers can suspend or close accounts at their discretion.
So far, some cardholders say, Citi has declined to prorate the annual fee to account for the weeks they were unable to use their cards. They say the bank has also refused to extend the bonus window.
Citi has been dealing with deeper structural problems. Since 2020, regulators have pressed the bank to fix its operational systems, which remain poorly integrated after years of acquisitions.
When Ben Hu called Citi last month to find out why his Strata Elite card was being declined, he got a different explanation each time. First, he said, he was told his credit limit was $0. Then he was told his address was wrong. Finally, after several days of calls, he learned he needed to submit the IRS form.
Before the debacle, the 32-year-old software engineer in New York City had considered moving some of his savings to Citi’s wealth management division to take advantage of a discount on the Strata Elite’s fee. Now he says he plans to close the card before the next renewal date.
Soon after his first call to customer service, two other Citi cards he had had for years were also blocked. For now, he is leaving them that way.
“I don’t want to be the one to call anymore,” he said. “They can block them if they want, I don’t need them.”
Others don’t feel they can walk away so easily. One cardholder worried that closing his Citi accounts could damage his credit score, since the bank’s cards make up roughly half his total available credit.
The ordeal has been costly for some.
Janice Lintz, 62, was abroad when she received notice that her six Citi accounts would be closed if the bank didn’t receive the IRS form within 30 days. The final days of what was supposed to be a retirement adventure turned into repeated calls with customer service.
Since she couldn’t get confirmation that Citi received the document despite spending $118 on courier fees, she decided to cut her trip short and resolve the issue from home, shelling out $600 for a last-minute flight to Washington, D.C.
“Last I checked, there’s no criminal charges against me, no indictment. So why did I have to fly all the way back from Bangladesh?” Lintz said.
Last week, after Collett’s account had been frozen for more than a month, a representative told him that it was restored and offered 5,000 bonus points—worth about $50—for the inconvenience. But his rewards remain frozen, meaning he can’t redeem the concession.
Collett said he is no longer convinced the card’s benefits justify its price and plans to close the account.
“If you’re subscribing to these cards for those premium treatments and premium benefits, you do expect higher levels of service,” Collett said. “They completely missed on this.”