Arthur “Artie” Rabin Fights to Reclaim 29 Million Reward Points

In a high-profile legal battle, Arthur “Artie” Rabin, a prominent div in the garment industry and an early investor in the Brooklyn Nets, has filed a lawsuit against Citibank. Rabin accuses the financial giant of unjustly stripping him of nearly 30 million credit card reward points, accumulated over many years of substantial spending.

This legal confrontation follows Citibank’s abrupt decision to terminate Rabin’s account, a move he describes as “draconian.”

The dispute over account closure

The lawsuit, filed on Thursday and accessed by The Independent, reveals Rabin’s demand for the restoration of 29,891,963 ThankYou points, which he amassed during his long-standing relationship with Citibank. The credit card in question had a substantial credit limit of $2 million and Rabin, who has been a Citi Prestige cardholder since 2015, used it for between $200,000 and $300,000 worth of purchases every month, according to the suit

Rabin argues that Citibank’s actions violated several consumer protection laws, leaving him “extremely prejudiced and embarrassed.”

Citibank’s response and legal implications

Citibank, in a letter to Rabin last month, expressed regret over the inconvenience caused by the account closure and confirmed the forfeiture of the points.

“We certainly regret any inconvenience or difficulty you may have experienced with the closure of your above-referenced account and the loss of earned ThankYou points,” Citi told Rabin in a letter last month, emphasizing with finality that his points “were forfeited at the time of closure.”

However, Rabin’s legal team, led by attorney Larry Hutcher, has labeled Citibank’s actions as “abhorrent and beyond unfair.” Hutcher emphasized the importance of the case, stating, “If they can get away with taking someone’s 29 million points, they can do it to anyone, at any time.”

“Citibank’s arbitrary decision to simply terminate Mr. Rabin’s account, and, in essence, steal 29 million points from him is abhorrent and beyond unfair,” Hutcher said. “We are going to pursue this in order to ensure that he receives everything to which he is entitled. If they can get away with taking someone’s 29 million points, they can do it to anyone, at any time. So, we feel this is an important issue to address.”

Rabin’s prestigious background and achievements

Rabin’s legal challenge underscores his stature as a “substantial and highly successful businessman.” With ties to influential divs like Bill and Hillary Clinton and having played a role in launching Beyoncé’s first fashion line, Rabin’s influence extends well beyond the garment industry. His son Jason continues to lead the family business, with properties in exclusive locales such as Fisher Island, Florida.

The core of the legal battle

According to Rabin’s lawsuit, Citi’s ThankYou Rewards program is considered “among the most valuable,” boasting partnerships with 17 airlines and hotels. The suit acknowledges that the program’s terms state if Citi closes an account for reasons other than inactivity, the cardholder’s points are “immediately forfeited, except where prohibited by law.”

The lawsuit traces its origins to an incident last year when Rabin discovered around $30,000 in unauthorized charges on his account statement, which Citibank promptly reversed, according to the lawsuit. Thereafter, whenever fraudulent charges appeared, Rabin would report them to Citi. The bank would cancel the card, reverse the charges, and issue him a new card with a different account number “to prevent further fraud,” the suit claims.

“However, in a classic case of blaming the victim, Citibank has now rejected a number of these disputes, even though the amount at issue (approximately $150,000) is a drop in the bucket compared to the amounts that Mr. Rabin has spent on the card on an annual basis since 2015,” the suit says.

Seeking justice and compensation

Rabin’s lawsuit alleges that Citibank violated New York State banking laws and seeks a court order requiring Citi to “restore and activate [Rabin’s] 29,891,963 earned ThankYou® Points for at least 90 days” or compensate him $300,000—the equivalent cash value of the points at $0.01 per point, as outlined in Citi’s terms and conditions.

“Any reasonable investigation of the unauthorized charges would have resulted in their permanent removal from Plaintiff’s account, rather than the closure of the account and the forfeiture of over 29 million ThankYou® Points,” the lawsuit argues.

A Citibank spokesperson declined to comment on the ongoing litigation, leaving the resolution of this high-stakes legal dispute uncertain.