Citi Waives Annual Fee, Gives 100K Points to Strata Elite Cardholders After 4506-C Issue

Citi is taking major corrective action following weeks of frustration among new Citi Strata Elite℠ Cardholders. Customers who were affected by the bank’s mishandling of 4506-C tax verification forms are now being offered both a $595 statement credit — effectively refunding the $595 annual fee — and 100,000 ThankYou Points without needing to meet the usual spending requirement.

Here’s a closer look at what’s happening and how Citi is making things right.

Inside the Citi Strata Elite Card 4506-C Controversy

After the Citi Strata Elite card launched earlier this year, many new cardholders were blindsided when Citi requested Form 4506-C, which authorizes access to their IRS tax information. Accounts were sometimes locked during the verification process, preventing users from making purchases that would count toward the card’s initial 100,000-point welcome bonus offer.

Initially, Citi offered a short 1-month extension to complete the required spending. But after widespread backlash — and a Wall Street Journal exposé titled “They Signed Up for Citi’s New Premium Card. It Turned Into a Nightmare.” — Citi escalated its response dramatically.

How Citi Is Making Things Right

Affected cardholders began receiving emails last week outlining Citi’s compensation plan:

• A $595 statement credit to offset the $595 annual fee.
• A $75 statement credit per authorized user, if applicable.
• Automatic fulfillment of the 100,000-point bonus, even if the minimum spending requirement was not met.

According to Citi’s message, customers don’t need to take any further action. Credits and points will be applied automatically.

Why Citi’s Response Matters

This is an unusually generous move by Citi, particularly for a premium card launched with high expectations. Refunds of annual fees and waived minimum spend requirements are rare in the credit card world, suggesting Citi is eager to rebuild trust and avoid further reputational damage.

It’s also a cautionary tale for other card issuers: Mishandling a new card launch or surprising customers with unexpected verification steps can quickly impact trust, and that’s especially true when it affects customers’ ability to earn a welcome bonus (which comes with a time limit), as that may have been a key reason they opened the account in the first place. Citi’s response shows that sometimes banks have to go above and beyond to make things right.

Final Thoughts

Citi’s decision to refund the annual fee and award 100,000 points without spending requirements is a meaningful way to make things right. For affected cardholders, it’s a fair resolution after weeks of frustration — and a sign that Citi is taking accountability. Hopefully, this move restores consumer confidence in Citi and sets a smoother path forward for future applicants.