New applicants for the Citi Strata Elite℠ Card shouldn’t have to worry about experiencing the same kinds of income-verification headaches that some early adopters have suffered, according to a Citi spokesperson.
“This is not an ongoing issue for new Citi Strata Elite applicants,” the spokesperson told NerdWallet via email.
The $595-annual-fee Citi Strata Elite℠ Card launched in July, marking Citi’s return to the premium travel credit card space. It comes with perks that no other card issuer is able to offer, thanks to an exclusive partnership with American Airlines. These perks includes passes to American’s airport lounges and the ability to transfer its Citi ThankYou points to American Airlines’ loyalty program. The card even has its own celebrity spokesperson, the popular actress Kristen Bell.
However, some cardholders found themselves scrambling after their accounts were blocked and Citi asked them to submit a completed IRS Form 4506-C, which is used to verify a taxpayer’s income. While it’s not unheard of for banks to request this form as a fraud prevention measure, the number of people who flocked to blogs and online forums to complain about the request suggested a widespread issue.
The timing wasn’t great either: Many were still in the process of meeting their minimum spending requirements to qualify for the bonus offer on the card.
Citi’s response to affected cardholders
On Oct. 17, Citi reached out to cardholders who had their accounts successfully unblocked to offer remediation, according to a copy of the email reviewed by NerdWallet. Those steps included:
A $595 statement credit that effectively reimbursed the first annual fee.
A $75 statement credit for each authorized user fee paid.
Awarding the sign-up bonus in full, even if cardholders hadn’t met the minimum spending requirement.
The bank also offered guidance to customers still affected on what they need to do to verify their income and unblock their accounts.
The outreach to cardholders came after The Wall Street Journal published a report on Oct. 16 detailing cardholders’ frustrations over the income verification process and issues with submitting the form. Cardholders, however, had been commiserating for more than a month on Reddit and other platforms over how to deal with the income verification process.
Is it a good idea to get the Citi Strata Elite right now?
Some might argue that now could be the best time to apply for the card, as Citi has made it clear that it’s aware of the problem and has taken steps to address it. Others might decide it’s not worth the potential for hassle, at least not right now.
If you’re thinking about applying for the Citi Strata Elite℠ Card, some of the card’s most attractive benefits include high point-earning categories, access to American’s Admirals Clubs and the ability to transfer points to Citi’s transfer partners, including American’s AAdvantage program. It also offers a slew of statement credits that can help offset the annual fee, including a $200 splurge credit for select merchants including American Airlines and a $300 hotel credit toward stays of two nights or more booked via Citi’s travel portal.
Right now, eligible applicants can receive the following offer: For a limited time, earn 100,000 bonus Points after spending $6,000 in the first 3 months of account opening.
While those who had their accounts unblocked are getting their sign-up bonuses even if they haven’t met the spending requirement, new applicants will need to meet the minimum spending requirement to get theirs.
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