Citibank Scares Consumers With 7-Day Threat

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Citibank customers may think they are the fool come April Fools Day or April 1, 2010 when Citibank may start requiring a 7-day notice to withdraw any money from checking accounts.

Last Friday, Citigroup sent out statements to customers throughout the United States to inform them that they may be required to submit an advance notice of seven days if they wish to withdraw cash from their checking accounts.

??We reserve the right to require (7) days advance notice before permitting a withdrawal from all checking accounts. While we do not currently exercise this right and have not exercised it in the past, we are required by law to notify you of this change.?

Later it was reported that this change was only for the state of Texas and that it had mistakenly been sent out to customers in the entire country. It was also reported that it was required to make these changes by Federal regulations and that the Federal Reserve Reg D required that all NOW accounts reserved the right to require a 7-day notice of withdrawal. Citibank also claimed that they have never exercised this right and that they had no plans to do so in the future but that they were required to disclose the possibility.

Whatever the situation, whether it is just Texas, required by the Feds, something that they have to disclose but have no intention of implementing, whatever?..
In this current economy this type of threat just frightens consumers. You would think that many consumers would be closing out those accounts before April 1. 2010.

For more information read
Business Insider-Citigroup warns customers
Seeking Alpha ?Withdrawal Gate
Future of Capitalism- Citi Warns of Withdrawal Gate