Citibank Euro Account

System

I formally complained to Citibank about their purported charge for outgoing SEPA transfers. It is illegal, because I have (after hours of nonsense from the badly-briefed people in the call centre) successfully made a UK BACS transfer in euro from my Citi euro current account, and Citi does not (currently!) charge for such a BACS transfer in euro. The EC regulation does apply to the UK, but only for transfers in euros. (Our wet government could extend it to tranfers in GBP, but doesn't dare upset our incompetent and wasteful banks any more.)
http://www.euro.gov.uk/crossborder.asp

Citi have been mulling over my complaint for 8 weeks. They have just sent a stalling reply that their legal department is looking into it. (That is, frantically trying to explain why the compliance people let through the illegal purported charge.)

Citi will, eventually, have to comply. My guess is that they will introduce the biggest fee they think they can get away with for UK BACS transfers in euro, and then charge the same for outgoing SEPA transfers.

It's looking increasingly attractive to open a euro account with a bank in mainland Europe, though as far as I know most of them make an annoying annual charge for debit and credit cards.

kamir

Have you looked at www.halifax.es ?

System

Thanks for the suggestion of Halifax. However, the tariff list that their website points to, is dated Jan 2007, and therefore doesn't say what they charge for SEPA Credit Transfers. They do seem to charge for most services.

Porcupine

Everyone who's complaining, keep us posted as to how it goes.

Quick question: I know Lloyds do some counter services for Citibank. Can you deposit Euro notes using a Lloyds branch, or is it only Citi branches at which you can make a deposit?

97trophy

Porcupine wrote: »

Can you deposit Euro notes using a Lloyds branch,

No, Lloyds will only accept GBPs.

System

Citi have, at last, replied to me that they are 'reviewing' their charges, and that "while this review is being undertaken, I can assure you that no further charges will be made for SEPA transfers". (However, their website at present still lists the illegal £10 charge.) The letter to me also claims that "we believe that our charges comply with Regulation EC 2560/2001". That is complete hogwash, of course. They mean they are still arguing about whether the charges people neglected to consult the compliance people, or the compliance people screwed up.

I still predict that, following the 'review', Citi will introduce the biggest charge they think they can get away with for BACS 'bill payments' in euro, and, in compliance with 2560/2001, the same charge for SEPA transfers.

It's all a great pity, because if only they operated it properly, Citi's euro account would be a market leader, tempting to residents of mainland Europe. There, banks do not, of course, charge for SEPA credit transfers, but, as far as I know, they normally charge annual fees for debit and credit cards, and usually other irritating fees.

Hazzanet

YoungNick wrote: »

Citi have, at last, replied to me that they are 'reviewing' their charges,

At least they have taken some heed of what you have been saying. I'm still sitting on my 'holding' letter at present but will advise if anything changes over the coming days.

Hazzanet

And herewith my response from Citi:



All I can say is why would you refund charges and review the charging structure unless, as YoungNick says, Compliance got it wrong?

Ah well, we'll see what happens next.

System

Thanks for putting up the whole text. My letter was exactly the same. So it's obviously a standard letter that Citi have sent to everyone who protested. The mention of the Ombudsman is a red herring. The Ombudsman will only look at cases where a customer has actually lost out, not protests about the principle of an attempt to flout the law. If Citi had not recanted, individual customers who had paid the £10 charge could certainly have recovered it by suing in the county court; and the Financial Services Authority might, just might, have taken an interest.

flortje

The fact that they put the charges on hold is a good sign. They must realise they could have it wrong. Excellent work!

I managed to get a complaint letter out just 2 weeks ago or so and did receive a confirmation letter. Am now waiting till I get one of those letters you guys got.