Citigroup closes unused credit card accounts due to a sharp increase in related business losses

Citigroup is closing unused credit card accounts to deal with customers defaulting on payments. The bank has also increased its ability to recover bad debts and reduced the credit limits of customers who do not use their credit cards. Citigroup's credit losses totaled $2.5 billion in the second quarter, higher than the same period last year. The bank has started to see a growing spending gap between high credit score customers and low credit score customers. This move could be a sign of future actions by other major banks