Citibank cancels customer credit cards

Citibank cancelled a number of customer credit card accounts effective Oct. 14, and while the company says the closures affected only a small percentage of their customers, it maintains it has the right to close accounts under the terms of the cardmember agreements.

The accounts affected were cards co-branded with oil companies like Shell gas and Citgo gas.

Customers tell CBS 6 they don't necessarily have an issue with having their accounts closed, but the company's method of doing so has angered them. 

Citibank cancelled the cards Oct. 14, but letters weren't sent out in the mail to inform customers until Oct. 19. Customers who tried to use their cards in between those dates, therefore, found their cards declined when they attempted to use them. 

Citibank would not comment on why there was a delay in notifying customers their accounts were being cancelled.

This closure of accounts may cause a bigger problem for customers: Citibank will be reporting all cancelled accounts to the credit bureaus, and any time a credit card is cancelled, according to a spokeperson at the Experian Credit Agency, it will affect your credit score because there is less credit available.

Citibank suggested that all affected customers contact the credit bureaus directly to understand how the disclosure might impact their credit history.

Citibank says they're not exiting the co-brand oil card business and is continuing to accept applications.