A former Brooklyn Nets co-owner is suing Citibank over the closure of a credit card, claiming a loss of 29 million rewards points.

 

Arthur Rabin, a former co-owner of the Brooklyn Nets, says Citibank has left him without 29 million rewards points worth $300,000. Patrick McMullan via Getty

A former co-owner of the Brooklyn Nets, Arthur Rabin, has made headlines for his legal battle against Citibank after the bank reportedly terminated his credit card account, stripping him of a staggering 29 million “Thank You Points,” which he claims are valued at around $300,000. Rabin, who co-founded Wear Me Apparel and has a history of significant financial dealings, including backing Hillary Clinton’s presidential campaign, had been a loyal customer of Citibank since 2015. Throughout his tenure with the bank, he spent between $200,000 and $300,000 each month on his Citi Prestige card, accumulating millions in charges before the card was abruptly closed earlier this year.

Rabin's accumulated points were earned through Citibank’s rewards program, which is known for its appealing redemption options that include travel, gift cards, cash back, and other enticing benefits. According to Rabin, the value of these “Thank You Points” is enhanced by Citibank’s partnerships with 17 airlines and hotel chains, making them among the most sought-after rewards in comparison to similar programs offered by competing banks.

The trouble began approximately a year ago when Rabin began experiencing issues with his credit card, highlighting unauthorized charges. His card, which boasted a generous $2 million credit limit, faced numerous disruptions due to these concerns. By August of the following year, Citibank decided to close the account, asserting in official correspondence that the closure was a result of multiple issues, including reports of lost or stolen cards and unusual activity patterns.

In a letter to Rabin, Citibank stated, “We’re unable to reinstate your account due to the number of times it was closed within the last several months due to a lost/stolen card or unusual activity.” This statement only deepened Rabin's frustrations, as he now also claims that the bank continues to bill him for a lingering balance, which includes disputed charges amounting to approximately $151,000—charges that he has persistently flagged.

In court filings, Rabin alleges that Citibank has fostered a culture of victim-blaming, rejecting many of his disputes despite the relatively small nature of the disputed amounts when viewed against his overall spending pattern. 

In a classic case of blaming the victim, Citibank has now rejected a number of these disputes, even though the amount at issue is a drop in the bucket compared to the amounts that Mr. Rabin has spent on the card on an annual basis since 2015,

 his legal documents state. This legal showdown between the former NBA team co-owner and the financial institution highlights the complexities and potential pitfalls in high-stakes credit card usage and reward point systems.