Customer Protection? Citi (C) Doesn't Give a Hoot
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Price: $140.79 --0%
Overall Analyst Rating:
SELL (= Flat)
Dividend Yield: 2.1%
Revenue Growth %: +9.2%
Overall Analyst Rating:
SELL (= Flat)
Dividend Yield: 2.1%
Revenue Growth %: +9.2%
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According to several sources Friday, following the breach of 360,000 credit card accounts last month, Citigroup (NYSE: C) simply sent a letter to customers, put its headphones back on, and went back into its room.
Traditionally, banks and other institutions which have seen a breach of customer information offered to give above-and-beyond security to quell fears and retain customers.
Citi doesn't do this. Instead, Citi's letter to customers reminded them the bank could place fraud alert on their credit files. In it's letter, Citi told customers to "remain vigilant during the next 12 to 24 months by monitoring your account activity." Fraud alert has lenders contact customers before an account is opened in their name.
The financial institution is willing to offer customers special services if they feel their account has been violated, but a customer has to get the ball rolling for this to take effect. It's not automatic.
With customer protection a rather cheap service, it would only make sense for Citi to offer the service for a year, allowing some customers to get their bearings straight.
Citi shares are down modestly in early trading.
Traditionally, banks and other institutions which have seen a breach of customer information offered to give above-and-beyond security to quell fears and retain customers.
Citi doesn't do this. Instead, Citi's letter to customers reminded them the bank could place fraud alert on their credit files. In it's letter, Citi told customers to "remain vigilant during the next 12 to 24 months by monitoring your account activity." Fraud alert has lenders contact customers before an account is opened in their name.
The financial institution is willing to offer customers special services if they feel their account has been violated, but a customer has to get the ball rolling for this to take effect. It's not automatic.
With customer protection a rather cheap service, it would only make sense for Citi to offer the service for a year, allowing some customers to get their bearings straight.
Citi shares are down modestly in early trading.
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