Sometimes You've Just Got to Wonder...

I'm looking for a little help in understanding things here. I had a Citi.You card, issued by Citi the Bank. (Mine was Citi.Baalzevuv, or City.Devil; take that, stupid dictionary lists!) Last August it was closed by the bank because of credit issues (not with them). I was cool with that, paid the full amount due, and felt lucky to be one card lighter in the wallet.

Unfortunately, an auction service for which I'd subscribed (but never used) charged a buck on it, just to make sure I was legit, the day before the card officially closed.

Now it's February, 2009. The balance is now $3.27 cents, and Citi's calling to get the account closed.

"Okay," I say, "let me close that account for you, especially since you've spent at least $20 in person-time just calling me and having this discussion."

"No," they say, after a little screen prompted thought, "we'd like you to pay the $3.72, and in return, we'll open up the card again, with your original credit line. That way you get a good mark on your credit score, more credit (which also helps your credit score) and we won't charge you the phone payment fee of $9.95 [for the $3.27 charge]. And I can get you a good rate: 10.9% plus prime!"

"You know I'm unemployed."

"Oh, that's okay," she said, not skipping a beat. "No credit check needed; we'll just reopen at your original amount."

Um... isn't this one of the ways Citi got into trouble? Giving money to folks that are patently incapable of paying back under the terms of the deal?

So yeah, I'll take the card. And bury it in the darkest hell hole I can find, away from wallet and temptation. But yeesh, what's the deal? Are we setting ourselves up for another bailout candidate a year from now? Is this how we want to use the bailout funds given to Citibank?

How many jobs will my credit line create, aside from customer services and account collections folks? What's the 'win' side to this equation?