Citi Forces Credit Card Users To Switch To Digital Statements, Or Lose Access To Digital Account

Citigroup, Inc. C is reportedly asking credit card holders to use digital bills, without which they might lose access to their online accounts.

The approach is one of the most difficult yet for the holdouts, according to a news report by The Wall Street Journal.

A Citigroup representative told the news agency that this initiative is a component of a "beta program" launched for a select group of customers who manage their accounts online yet continue to receive paper statements.

The bank did not disclose the number of customers who were sent these messages, the report read.

Citigroup's current policy mandates that customers must sign up for paperless billing to maintain online account access, yet they retain the option to revert to paper statements while keeping their access to the bank's website and app.

Lawyers and consumer advocates argue that the policy challenges the boundaries of federal regulations, the report added. 

These laws stipulate that credit card issuers must send paper statements to customers monthly unless customers choose electronic statements instead. 

The regulations do not clarify if customers have a right to digital account access, The Wall Street Journal adds.

"It does not sound legal to me," said Ira Rheingold, executive director of the National Association of Consumer Advocates, the report read. 

Price Action: C shares are trading higher by 2.53% to $42.40 on the last check Friday.