It is virtually impossible to live in modern society without a credit card. Consumers need plastic to rent cars, make on-line purchases, prove their identity, and even buy a bag of peanuts on an airplane. As a result, consumers have to increasingly rely on the honesty and integrity of credit card companies with whom they have accounts. Given how many charges appear on most consumers’ credit card statements every month, it becomes all but impossible to monitor each and every charge. This is especially true of elderly and vulnerable consumers.
Unfortunately, some credit card companies abuse their customers’ trust, and it appears Citibank may be one of them. A number of consumers have reported that mysterious and unauthorized charges for a shopping discount club called Essentials Gold have appeared on their Citibank statements. When confronted, Citibank sometimes reverses the charge, in what seems to be a tacit admission that it was unauthorized in the first place. The scheme appears to be widespread, as consumers also say that Citibank customer service reps confirm that they have heard a number of similar complaints.
Essentials Gold also appears to go out of its way to make it difficult for consumers to cancel these unwanted memberships. When they call, Essentials Gold demands their member number (which consumers rarely have, as they never agreed to join in the first instance) or asks for the credit card number. Naturally, consumers calling to cancel and to seek refunds for unauthorized charges are reluctant to provide their credit card number to a company they have reason not to trust.
Our team is researching a potential consumer class action against Citibank and Essentials Gold. If you or someone you know was charged for membership in Essentials Gold, please contact us to discuss your legal options.