Citi Cancelling Payment Services for FFLs

[legion]

Citi canceled an FFLs payment services and is keeping $75,000 because they were selling guns to people in other states and shipping them to other FFLs.

http://www.worldnetdaily.com/news/article.asp?ARTICLE_ID=59970

The issue arose when Citi Merchant Services, in a letter signed by June Rivera-Mantilla in the "Periodic Review" department, informed CDNN Sports In. of Abilene, Texas, that the company's bankcard processing services were cancelled, and that the banking company was withholding $75,000 as a reserve for "potential chargebacks" and it would be held for six months or longer.

Officials with CDNN declined to discuss the situation with WND, citing the "litigation" that was ongoing over the dispute. But they confirmed that the letter documenting the actions by Citi Merchant Services was accurate.

And a statement from CDNN President Charlie Crawford was posted on the NSSF site. "We were contacted recently by First Data/Citi Merchant Services by a June Rivera-Mantilla stating that we were terminated and funds were being seized for selling firearms in a non-face-to-face transaction. Although perfectly legal, we were also informed that no transactions would be processed in the future, even for non-firearms. I find this very frightening."

[Rick Lee]

I just bought a gun from CDNN last week. Luckily, I used a different credit card, though I do have two Citi ones which I now plan to cancel. NSSF is a client of mine, so I will touch base with them on Monday to see who at Citi deserves the strong letter I will write.

[Shawn 357]

Thanks for posting this. I was planning on getting rid of a card or two and now I know which cards I'm canceling.

[Joeaksa]

Good reason to cancel the Citi card I have now.

Unfortunately the jerks at CitiBank just purchased my morgage on the house 2 months ago and a bit short on paying that off in full to get away from them on that.

[jriera]

I really hope Citi does not have a booth at the SHOT Show this week!!!

[on2wheels52]

"selling firearms in a non-face-to-face transaction"
Krikey, they're a wholesaler. I wonder what percentage of their business isn't done that way.
Jim

[onewhippedpuppy]

No justification on Citi's part? Considering that using FFLs to sell firearms is 100% legal, I'd be suing them too. No current association with Citi, and I'll keep this filed away for future reference. I almost bought a 1911 from CDNN before finding a great deal locally.

[Porsche-O-Phile]

Heavens forbid we defend legitimate gun sales using established and "above board" brokers and making credit card payments an option for the honest working people of society. Thank you Citigroup for doing your part to ensure that all gun sales are done in dark alleys, cash only, between shady-looking underworld characters.

I've always disliked Citigroup. Now I dislike them even more.

[john70t]

The best way to rob a bank..... is to own one.

[cashflyer]

"Keep in mind that a violation of the Gun Control Act occurs when a gun offered online is sold to an individual in another State; the act prohibits selling a handgun to a resident of another state. Shipping across state lines is also banned, yet guns for sale online reach people across the country. We at Citi Merchant Service are unable to monitor or track adherence to these Gun Control laws," the letter said.

When did Citi become a branch of the Justice Department, charged with the responsibility of monitoring adherence to gun control laws??

[red-beard]

Citibank is based in NYC and board members probably hang out with Bloomberg

[RWebb]

no, Citi is scared they might get caught in some sting operation.

[legion]

Originally Posted by cashflyer

When did Citi become a branch of the Justice Department, charged with the responsibility of monitoring adherence to gun control laws??

Something tells me that Citi has no problem opening accounts, or extending credit to illegal immigrants though...

[Rick Lee]

Originally Posted by RWebb

no, Citi is scared they might get caught in some sting operation.

How? Citi is doing nothing illegal by dealing with FFL's. No crime, no sting. And if BATF even tried, they'd have egg all over their face, which they really, really don't want or need. This is a case of A) completely incompetent lawyers at Citi unfamiliar with the law or B) attempting to exercise their own form of gun control or C) both A & B. Someone at Citi needs to get fired over this with a very public apology to their account holders and merchants.