Credit Card Overview
Fact: there are more credit cards than people in Britain and the country's debt problems are amongst the worst in the world.
When choosing a card provider, its policies on responsible lending and debt advice provision are of key importance. The green and ethical concerns you bring to who you bank with, concerns about equal opportunities or the environment, are just as applicable to who you get your credit card from.
This section also looks at the green or ethical worth, as well as the practicalities of charity affinity cards.
Does your credit card provider treat its customers responsibly?
What are charity affinity cards and how do they work?
Does your credit card provider treat its customers responsibly?
Responsible lending
According to the British Banker's Association (BBA), responsible lending means 'providing credit, based on background checks and professional judgement, to people who can accommodate repayments without getting into financial difficulty'. As the sheer number of people in debt today shows, these principles are not always well applied by credit lending institutions. In 2008 our credit card debt hit £54.4bn and continues to rise.
Transparency is key - credit card customers should be presented with the terms and conditions attached to their card up front and in plain English. It is important to check whether your provider has a responsible lending policy in place, and how it is implemented if it does exist.
Debt management
Credit card debt is all too common in the UK. Some financial institutions offer basic in-house debt advice services, the scope of which can vary greatly. Often providers will refer customers to free advice services including the Consumer Credit Counselling Service, the Citizens Advice Bureau and others.
Use our search tool to find details of your provider's debt management services. Information on this subject can be found under 'Responsibility toward Customers'. Alternatively contact your provider directly for further information.
What are charity affinity cards and how do they work?
Affinity card providers make a small donation on behalf of the card holder to the charity it is associated with.
Such charity donations average around 25p per £100 spent. So, in order to donate £100 to your charity of choice you'd have to spend £40,000 with the card. Most providers also make a one-off donation of between £5 and £25 on each new card account.
In their analysis of charity affinity cards moneysavingexpert.com suggest that a more effective way to donate money is to use cash back cards. Cash back cards operate in much the same way as affinity cards except that instead of a charity, additional money goes to the card holder and this money is usually considerably more than a standard charity card donation. The cash back card holder can then donate the money they have earned to the charity of their choice and if eligible, Gift Aid it, so rather than £1 the charity will receive £1.28. Donations on affinity cards are not eligible for Gift Aid.
View the range of charity affinity cards available on the market click here.
Your next steps
See our guide Next Steps - Credit Cards for more suggestions on how to find out about your credit card provider's green and ethical policies, how to contact them and how to find the right credit card for you.
Credit Card Search
Credit Card Provider
Citibank (UK)
Green/Ethical Products
- Community lending and investment (through Citibank and Citi Financial)
- Microfinance (through Citi Microfinance)
- Energy Efficient Mortgage (US only)
Ethical Lending or Insurance
Citigroup has an Environmental and Social Risk Management (ESRM) policy which indicates that the bank prohibits activities or transactions that involve significant conversion or degradation of ‘critical habitat’ or that utilise forced labour or child labour. The policy draws on elements of the Equator Principles, the International Finance Corporation’s Performance Standards and Environmental, Health and Safety (EHS) Guidelines. Additionally, Citigroup states that it has sector specific standards on Sustainable Forestry and Nuclear-Related transactions.
Responsible Lending
1. Credit Lending
Citibank does not offer mortgage products (secured loans) to UK customers.
In terms of conducting checks into the credit history of customers seeking unsecured credit, the bank states that it ‘may’ check the information provide by customers with credit reference agencies or fraud prevention agencies.
No policy to prevent offering unrequested increases in credit limits to customers was found. The bank states that it will set a credit limit for accounts and keep customers informed what it is and that it may change this credit limit at any time but will inform customers of any such unrequested change.
2. Debt Warning
No prevalent debt warnings were found.
No evidence was that the bank uses the FSA Debt Test or an equivalent. This facility is designed to help customers find out whether they have, or are likely to have, problems with borrowing. It also has tips on what to do if customers find themselves in difficulty.
3. Debt Management and Advice
No information was found regarding the bank’s policies on payment default and handling payment problems or the stages involved in repossession or court action. No information was found regarding the possibility of payment breaks for customers in financial difficulty either.
Financial Exclusion
Citibank does not make many provisions for financially excluded customers in the UK. In the US however it introduced ATM text-to-speech technology and talking ATMs in 2001.
Citi Microfinance Business Unit provides financial products and services to Microfinance Institutions (MFIs).
Citigroup also offers community lending products, primarily in the US.
Environment
Citibank address the key issues of energy efficiency and waste management in their environment policy. The bank also shows a commitment to improving performance in the long term.
Carbon Neutral
Citibank states that its absolute goal is to reduce the global emissions of its business operations by 10% from the 2005-level by the year 2011. This commitment does not qualify for rating against our criteria.
Equal Opportunities
Citibank’s equal opportunities policy addresses the key issues of race, gender, disability and sexuality.
Women on the Board
The bank reports a figure of 13.3% for 2008.
Charitable Giving
Citibank donated 0.89% of its pre-tax profits in 2007.
Citibank (UK)
- Current Accounts
- Savings
- Investments
- Credit Cards
- Loans
- Student Current Account
Citibank (UK)
Citibank (UK)
Customer Service Team
PO Box 49930
London
SE5 7XT
