CitiFinancial, Inc. - unhappy with services

# 21 for April 6, 2002

Complaints.com received the following consumer message on April 5, 2002:

From: Beth Huck [Email User]

RE: CitiFinancial, Inc. - unhappy with services

My fiance and my brother have personal loans through a company called CitiFinancial, Inc. These loans have interest rates in the upper 20's. You have probably received mailings from this company, most people do. They quote you a monthly payment that includes not only the principal and interest, but also several types of insurance that you probably already possess through your job or renter's/homeowner's insurance.

They include these insurance fees in the original quote so that when you sign the contract, it won't appear as if you are getting anything that you don't want. This company is also used by some retailers that offer free financing for limited amounts of time.

I have read complaints from other consumers saying that they receive monthly statements up until about 2 months before the free financing period has expired, and than they cease to mail you statements, making it easier for the consumer to forget, or let go paying the balance off before the finance charges kick in like there's no tomorrow.

What a convenient way for them to make a little bit of extra money (if you call $29 million dollars in profits last year a little bit of money). I just recently took advantage of a 12 month no payment, no finance charges deal when I bought a new mattress, and CitiFinancial is the lendor. Thankyou to those of you that took the time to let others know of the trouble that lies ahead.

Citifinancial, Inc. is a subsidiary of Citigroup, who own Citibank (pretty much anything that starts with "Citi"), Salomen Smith Barney, Traveler's Group, and several other lesser known companies. As far as I am concerned these practices are immoral and should not be considered fair lending.

So I guess us consumers just have to help each other out. I wonder where the real money is? Making money for rich people at Salomen Smith Barney, or ripping off poor people at Citifinancial?