I just got an email from Citi saying that my Citi Premier Mastercard Annual Cardholder Fee is increasing from $0 to $350 from 28-Nov-2024 - a huge jump! I have had this card for a very long time and I'm pretty sure it was supposed to be fee free for life. It was once a Signature card.
I pay the annual $49 reward program fee for QFF.
Anyone else received this email and any options on what I/we can do?
Here are the current card fees as per thier web site:
"$150 in the first year and each subsequent year if you spend $48,000 on eligible purchases or cash advances in the previous year.
Otherwise $300"
No mention of annual fee increasing to $350 at all.
Maybe its time for OP to switch to another card.
The interest rate is a fairly hefty 21.49% and interest free period is only 44 days.
The nearest compatible credit card to this one is the HSBC Premier World Mastercard.
Still free and has the same features and benefits but with:
55 days interest free period
Lower 19.99% interest rate
Lower international/foreign transaction fee
But check the hefty qualification criteria.
Its free for life?
and I'm pretty sure it was supposed to be fee free for life
I've had the citi premier (and whatever else it was before that) for ever, since the fee free for life promo.
Email today mentioned increased interest rates but nothing about introducing an annual fee.
Same same
Same same same
Same same same same
I also have the Citi Premier card since like forever, which was called Citi signature when I got it (with a fee free for life promo).
So far, I haven't seen any emails about any fees, and I don't expect any tbh, because the deal was indeed marketed as fee free for life.
OP, when did you sign up for the card, and could you please post the full email OP (excluding your personal details)?
Not a good sign for those of us with the free-for-life card.
I also received an email today from Citi about changes to my Premier card. All that is changing is the annual percentage rates. There is nothing in the email about a card fee.
Ditto. Only increase in annual percentage rates. No mention of new fees.
I think the OP has Citi Premier Qantas card which is different to the Citi Premier card. The latter accumulates Citi Reward points.
Might only be a matter of time until NAB try to impose a fee on the "free for life" Citi rewards as well.
I think both cards were an option back in 2013 when they were available
Screenshot of original deal
The way corporations get around 'free for life' offers is by first stating its the expected life of the product or program, not the life of the customer, then stating the predicted life of the product or program has changed for whatever reason.
Back in February after the NAB acquisition of Citi's cards business, NAB contacted many customers with these free-for-life cards (Citi Rewards and Citi Premier) to reintroduce the annual fees. You can see the OzBargain thread discussing it here. Many customers, including myself, had success contacting NAB about this and requesting the annual fee to continue to be waived. Below is a template you could use to contact NAB.
Hi,
On 1 February 2024, I received an email from Citi Australia titled “Important information about your Citi Rewards Credit Card account”, which advised that Citi is “changing the Annual Primary Cardholder Fee to $149 from 25 March 2024” for my Citi Rewards Credit Card account ending 2952.
When I signed up for this credit card in 2014, I was advised by Citi that the annual fee for my Citi Rewards Card would be $0 for life. Therefore, my annual fee should not be changed to $149 on my next anniversary month and should remain $0.
Can you please advise whether Citi/NAB intends to charge me for my Citi Rewards Card moving forward or the card will continue to be $0 for life as per the agreement when entering into the arrangement with Citi for this card?
Thanks,
i didnt get contacted back in feb or now…
NAB is hellbent in destroying their golden goose, aren't they? Obviously they have been watching what happened with 28degrees.
what golden….
sometimes we just need to think simple.
1. why citi sold the business out? if making money surely they want to keep it ?
2. of course the opposite question why nab want to buy if not making money?
but for me the no1 is the truth and the only truth fact here
One other point worth mentioning here, which I've just noticed this month on my Citi Premier Card. The "Minimum Payment" due date has change significantly from when it normally falls. I have a Minimum Payment Due on 17th October this month, where it has nearly always been between 25th - 30th of the month for the many years I have had the card. Not sure if this is just the case for me, but I would have been caught out if as I normally set-up schedule payment for the entire balance around 20th of the month. Interested to hear from others if this is now a shift in the payment date for everyone?
An email about this came out ages ago.
Ok thanks must have missed it.
In July everyone got an email saying that Citi were moving from 55 days free credit to 44 days.
Hence the change.
Same with the CitiRewards Platinum card, shaved off about a week, so now sort of becomes a 48-day interest free card
I received a notice yesterday on this with a slight variation.
I've had this card since it was a Signature card. My usual annual fees are $199 for the primary cardholder and $90 for each additional cardholder (I have one additional).
Other than the annual percentage rate for interest (which is not relevant to me), the notice states that the new fee for the primary cardholder will be $300. No wording on the additional cardholder(s). I spoke to them on chat and they said since there is no change to additional cardholder fees, that the $90 for each will stand.
So I will be paying $390 for a card that a standard customer would pay $300 for (additional cardholders are $0), ignoring any offers to new customers. And putting aside bonus points offers, it looks like new customers will pay a reduced $150 if they spend more than $48K each year.
After mentioning that I would need to consider options, they sent me the steps to cancel my account (all online), and thanked me for my loyal patronage.
This is what I am afraid of. The way this is heading, I don't think it is going to be any better for customers down the track. The fact that they are so willingly give you the steps to cancel online shows they don't need you as customer.
This is the email I received. Thanks @zzap I will contact NAB and report back.
=====
Important information about your Citi Premier Card account ending in ****
Dear ****,
We want to let you know about upcoming changes to your Citi Premier Card account ending in ****.
A summary of the changes are outlined below, however, the variation notice provides full details of the changes, as they apply to your:
• Financial Table.
What are the changes
Effective 28 November 2024, the following changes will apply:
• The Annual Percentage Rate (APR) that applies to your Retail Purchases will increase from 21.49% to 22.49% p.a. Any unpaid Retail Purchase Balance (including fees and charges) as well as any new Retail Purchases will incur interest at the new rate.
• The APR that applies to your Cash Advances will increase from 22.24% to 22.99% p.a. Any unpaid Cash Advance balance (including fees and charges) as well as any new Cash Advance transactions will incur interest at the new rate.
If you are on a promotional rate, your rate will remain unchanged until your offer has expired.
Effective 28 November 2024, the following change will apply:
• The Annual Primary Cardholder Fee, as set out in your Financial Table, will increase to $350. The fee will apply the next time your Annual Primary Cardholder Fee is due.
The variation notice provides full details of the change, as they apply to your Citi Premier Card.
What you need to do
It's important that you read the notice carefully as it contains all of the changes and keep a copy for your records.
The change to your Annual Primary Cardholder Fee will be reflected on your credit card statement and is scheduled to be charged in May 25. If your Annual Primary Cardholder Fee anniversary date falls on a weekend, the fee will be debited in the next statement period.
You do not need to do anything further as the change will automatically apply from the effective date indicated.
If you would like more information regarding your Citi Premier Card or if you would like to consider an alternative Citi Credit Card, please visit our Card Selector Tool at https://www1.citibank.com.au/credit-cards/card-selector.
What if I have any questions
If you have any questions on these changes that have not been explained in the notice, you can visit citibank.com.au/contactus.
Yours sincerely,
The Customer Service Team
Variation Notice
This variation notice provides full details of the changes, as they apply to your:
• Financial Table.
What are the changes
Effective 28 November 2024, the following changes will apply:
• The Annual Percentage Rate (APR) that applies to your Retail Purchases will increase from 21.49% to 22.49% p.a. Any unpaid Retail Purchase Balance (including fees and charges) as well as any new Retail Purchases will incur interest at the new rate.
• The APR that applies to your Cash Advances will increase from 22.24% to 22.99% p.a. Any unpaid Cash Advance balance (including fees and charges) as well as any new Cash Advance transactions will incur interest at the new rate.
If you are on a promotional rate, your rate will remain unchanged until your offer has expired.
Effective 28 November 2024, the following change will apply:
• The Annual Primary Cardholder Fee, as set out in your Financial Table, will increase to $350. The fee will apply the next time your Annual Primary Cardholder Fee is due.
These changes form part of, and must be read in conjunction with, the existing Terms and Conditions that govern your account, which can be found at www.citibank.com.au/credit-cards/terms
What you need to do
It's important that you read the notice carefully, and keep a copy for your records, as it contains all the changes.
What if I have any questions?
If you have any questions on these changes that have not been explained in the notice, you can contact us at citibank.com.au/contactus.
How to read this notice
Section numbers as listed in this notice relate directly to the section numbers in your terms and conditions.
If a section or sub-section is not specifically mentioned in this notice it remains unchanged.
If a section or sub-section is specifically mentioned in this notice:
a. a change is shown by deleting the words in the column headed "Current Words" and replacing them with the corresponding words in the column headed "Replacement Words";
b. a new section or subsection is shown as "New Words".
Changes to your Financial Table
The Annual Percentage Rate and Annual Primary Cardholder Fee in the Financial Table will change as outlined below:
Current Words
Replacement Words
Annual Percentage Rate:
Retail Purchases: 21.49%
Cash Advances: 22.24%
Retail Purchases: 22.49% p.a.
Cash Advances: 22.99% p.a.
Credit Fees and Charges Annual Primary Cardholder Fee:
$49, debited to your Account on first use of the Account (including Card activation), and then on each anniversary of the date your Account was approved.
$350, debited to your Account on each anniversary of the date your Account was approved.
National Australia Bank Limited (ABN 12 004 044 937, AFSL and Australian Credit Licence 230686) ("NAB") is the credit provider and issuer of Citi branded credit products. NAB has acquired the business relating to these products from Citigroup Pty Limited (ABN 88 004 325 080, AFSL and Australian Credit Licence 238098) ("Citi") and has appointed Citi to provide transitional services.
Our/us/we means NAB unless the context otherwise requires it.
"Citi", "Citibank", "Citigroup", the Arc design and all similar trade marks and derivations thereof are used temporarily under licence by NAB from Citigroup Inc. and related group entities.
far out i have exact same email but without that annual fee changes paragraph :D
far out i have exact same email but without that annual fee changes paragraph :D
Same here, I got a similar without the annual fee changes paragraph.
Seems like if you already have Fee-Free-For-Life Citi Signature, they will remain fee-free. Those who paid annual fees (later registrants) will get their fees increased.
Bad news - Citi confirmed via secure email and live chat that the fee increase is happening and it cannot be appealed/over-ridden :( They said it applies to ALL Citi Premier customers. I have til my next annual fee date in June 2025 to change cards.
With the recent changes, if the current annual fee is less than $350, moving forward, it will beome standard fee of $350.
Yes, that is right. All Citi Premier customers are affected by the recent changes. This will be effective 28 November 2024. The new annual fee will be automatically applied the next time the Annual Primary Cardholder fee is payable if the next anniversary date of the account is on or after 28th November 2024
We regularly review the annual fee that we charge our customers and the features and benefits associated with the product including several factors, such as operational and servicing costs, current economic factors, and competitor fees.
We appreciate your feedback on this matter and I too would feel the same way with the suddent high fee that will be charged.
Regrettably, we are not able to provide you with a reduced fee or keep you on the current annual fee, this is the standard annual fee applicable to all Citi Premier Credit cardholders effective 28th November 2024.
The good thing about this is that you can still enjoy the benefits of the Premier card.
With regards to the communications, I can confirm that all Citi Premier credit card holders have receiveds mail and email notices regarding the changes.
As per some posts above, I have Premier fee free for life card and have only received emails about rate increases, not cardholder fees. Hopefully we'll have it fee free for the time being.
This is not correct for all Citi Premier customers, at least for now anyway. The email I and some others have received does not state anything about a fee being introduced. The only changes that apply to me on 28th November 2024 are an increase to the annual percentage rate for retail purchases and for cash advances. Nothing else. Was your card $0 annual fee for life? And when did you sign up for it? I've just checked back through my emails and found that I was approved for a Citibank Signature card on 28th November 2013 (so likely from the deal posted here). Wow, exactly 11 years to the day when the changes will come into force.
Same.
Obviously Does not apply to those who have this card under the FFL promotion
Maybe slightly off topic, but if the above is true, then I need to preplan what to spend reward points on when the time comes.
Has anyone figured out the most effective way to get best bang for buck to help with cost of living, I think in the past I compared ‘pay with points’ vs gift cards and pay with points may have slightly been better off? Hoping there is an even better way to use up the points before a potential cancel date.
You can just browse the reward store and put each on excel to compare (the ratio). I think best is swap to flight reward scheme if you like to fly.
Otherwise just spend on something you will use, maybe Woolworth.
Keep it simple.
When I compared 'pay with points' was slightly worse value than gift cards.
Transfer to flybuys, then pay with flybuys points was slightly better.
Convert to Flybuys 1:1 is by far the best value redemption for your Citi points.
If this is true, can anyone file a petition with the financial ombudsman and ask if banks/financial institutions are allowed to advertise fee-free for life and then change the fee later?
When Coles/Woolworths increase a product by $1, they are sued in court, but Citi can increase a product from $0 to $350 and get away with it?
Yes, everyone who is affected by this should contact the Australian Financial Complaints Authority (https://www.afca.org.au/) and put in a complaint. That is what I will do if they introduce an annual fee for my card. Does anyone have any paperwork or email which states that it is $0 annual fee for life? This would make it easier to put in a complaint.
I've managed to find this archived page showing the deal: https://web.archive.org/web/20131121012939/https://www.citib…
I would guess their T&C’s would allow them to change the fees etc?
Definitely worth a shot though.
Its not true obviously. So there is nothing to whine about.
anyone who signs up to this card pays the annual fee of $300