Citi's launch of its Strata Elite credit card has backfired for customers, some of whom say their accounts have been frozen for weeks—despite paying a $595 annual fee. Citi hasn't disclosed the number of customers affected or the exact cause of the account freezes, but a statement suggested the lockouts were triggered to protect customers, reports the Wall Street Journal. "We are constantly assessing our processes and communication for improvement," added the statement. One especially annoying wrinkle for cardholders: Those with frozen accounts say they will be unlikely to meet the spending minimum necessary to earn a bonus that enticed them to sign up in the first place.
"It was a game of checking the app every day to see if I could finally use my card," says Brad Collett of Texas, who filed a complaint with the Consumer Financial Protection Bureau. "It was just ridiculous on their side." Another customer said she spent $118 for a courier to deliver her IRS form and $600 on a last-minute flight home from overseas after Citi threatened to close her six accounts.
The Strata Elite is intended to challenge premium offerings from Amex and Chase, but Citi's own operational issues—criticized by regulators for years—may have left it unprepared for the rollout, per the Journal. Assuming the bugs get ironed out, the new card might make sense for specific customers, including those who travel or dine out frequently, according to a post at NerdWallet that digs into the nitty-gritty. CNBC also looks at the pros (being able to transfer points to American Airlines) and cons (limited rewards categories).