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.
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
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Credit Card Provider
Citibank (UK)
Green/Ethical Products
- The parent company Citi Group Inc. offers Microfinance through Citi Microfinance.
Ethical Lending or Insurance
No evidence of an ethical lending policy found for Citibank UK.
However Citibank is a subsidiary of Citi Group Inc. Citi Group’s Environmental and Social Risk Management (ESRM) Policy prohibits transactions involving forced labour or harmful child labour. The policy draws on elements of the Equator Principles and the International Finance Corporation’s Performance Standards and Environmental, Health and Safety Guidelines.
The policy applies to transactions that meet the financial threshold of $5 million for a Citi equity investment, $10 million for project finance transactions, and $50 million for corporate loans, acquisition finance, and debt and equity placements or underwritings.
http://www.citigroup.com/citi/environment/policies.htm#env-policy
Additionally, the Group has sector-specific standards. These include those in: Sustainable Forestry, Nuclear-Related transactions, Mountaintop Removal Mining Environmental Diligence Process and Carbon Principles (for US coal-fired power plants).
Its Sustainable Forestry Sector Standard states that the bank has made a public commitment that it will not engage in business with companies whom it knows to be in violation of local or national laws regarding illegal logging. There is no minimum dollar threshold amount for this Sector Standard.
The bank has a unit called the Environmental and Social Risk Management (ESRM) Unit to oversee this area.
The Group reports that in 2010, 536 transactions around the world were reviewed by the ESRM team, including 33 project finance transactions and 276 corporate or government loans. However, the Group does not report whether any of these transactions were declined due to environmental or social risks.
The Group also reports that in 2010, 4 transactions were subject to the Mountaintop Removal Mining Environmental Diligence Process, which has been fully incorporated into its credit risk policies and procedures in 2009, and only 3 transactions were approved and closed.
No recent examples found.
Human Rights
Citi Group Inc. has a human rights statement but does not state whether the policy covers all of Citibank’s operations or all of its countries of operation, including Citibank UK.
The Group states that it “supports the protection and preservation of human rights around the world and are guided by fundamental principles of human rights, such as those in the United Nations Universal Declaration of Human Rights and the International Labour Organization (ILO) Core Conventions”.
The Group’s Environmental and Social Risk Management(ESRM) Policy states that ESRM-covered transactions in emerging markets should comply with the International Finance Corporation’s Performance Standards on Social and Environmental Sustainability, covering issues such as the involuntary resettlement of affected people, harmful child labour and forced labour, and public consultation with affected communities.
The Group measures their performance in each of their social and environmental priority areas and continue to report data to provide comparisons and show trends over time. Their reporting closely aligns with the Global Reporting Initiative (GRI) 3.1 Guidelines, a widely recognized standard for best practice in sustainability reporting. The structure and transparency of this report reflect the GRI Framework. Based on an internal review, Citi determines this to be a B level report against the GRI G3.1 Guidelines.
Financial Exclusion
No evidence of any accounts, products or services aimed specifically at the financially excluded.
No evidence that the Bank provides direct financial support to or engages in partnerships with Credit Unions and CDFI’s (Community Development Financial Institutions). However, The Citi Foundation has funded the development by Toynbee Hall (working in partnership with NatCen Social Research) of an evaluation tool that can measure the impact of financial inclusion services on an individual's well-being. The Money, Access and Participation (MAP) Tool is currently in its second pilot phase.
- Branches have wheelchair access, lifts, power assisted doors and improved lighting.
- Literature in Braille, large print and audio.
- Type Talk for the deaf and hard of hearing.
No evidence found of Citibank UK’s involvement in any microfinance or microinsurance projects.
However Citibank’s parent company offers microfinance through Citi Microfinance, Citi Indonesia. Along with the U.S. Overseas Private Investment Corporation they announced an $18.5 million term loan to promote financial inclusion of microentreprenuers and small businesses in Indonesia.
No evidence found that the company invests in or lends at lower rates to financially excluded communities.
Environment
Citibanks UK’s parent company Citi Group Inc. environmental policy covers the key areas of climate change, energy efficiency, waste management and water use.
According to their 2012 Global Citizens Report the Group has a continuing commitment to continued improvement of its performance.
Carbon Neutral
No commitment to become fully carbon neutral was found.
Equal Opportunities
The bank's equal opportunities policy addresses the key issues of race, gender, disability and sexuality.
Women on the Board
Parent Company:
3/13 women hold top level board positions (23%).
Voluntary Standards & Initiatives
Citibank UK is a not a signatory on their own of any relevant charters/initiatives. However other divisions of Citi Group Inc. are members of the following:
- Equator Principles (Citigroup Inc. in the US).
- United Nations Environment Programme Finance Initiative (Citigroup).
- Coalition for Environmentally Responsible Economies.
- Wolfsberg Principles.
- United Nations Global Compact.
- The London Benchmarking Group (a group of over 100 companies working together to measure Corporate Community Investment) (Citibank).
- Global Business coalition on Health (Citigroup).
- Opportunity Now from Business in the Community (Citi).
- Employers Forum on Disability (Citigroup).
- Involved with the Enhanced Disclosure Working Group (Citigroup Investment Research).
Charitable Giving
According to the Groups CSR report The Citi Foundation invested $76.5 million in programs that support the economic empowerment and financial inclusion of more than 1.1 million people globally.
The Citi Foundation invests in programmes aimed at community development in the following core areas:
- Financial Capability and Asset Building.
- Microfinance.
- Enterprise Development.
- Secondary school students (in the US).
- Youth Education and Livelihoods (outside the US).
- Neighbourhood Revitalization (in the US).
Citibank (UK)
- Current Accounts
- Savings
- Investments
- Credit Cards
Citibank (UK)
Citibank International plc.
Citigroup Centre,
Canada Square,
London
E14 5LB.
