Consumer complaint received 2023-09-06
Company: REGIONS FINANCIAL CORPORATION
State: CO
Product: Credit card
Sub-product: General-purpose credit card or charge card
Issue: Fees or interest
Sub-issue: Problem with fees

Complaint:
On XX/XX/XXXX BP Business Solutions generated an invoice for the XXXX XXXX XXXX account number XXXX with a total balance due of {$2700.00}. The balance of {$2700.00} was due on XX/XX/XXXX. A total payment of {$3600.00} was made on XX/XX/XXXX for the balance due of {$2700.00} and an additional {$980.00} for unbilled transactions for a total payment of {$3600.00}. The {$940.00} was not billed or due yet but was paid ahead of schedule. 

On the next invoice generated for XXXX XXXX XXXX, on XX/XX/XXXX, BP Business Solutions added an itemized LATE FEE ON PREVIOUS INVOICE late fee of {$1500.00}. 

The Tems and Conditions of this credit card account agreement states that the highest late fee that can be charged to a customer is 9.99 % for an account of high credit risk. However, since 9.99 % of {$2700.00} is only {$270.00} and not {$1500.00} BP Business Solutions incorrectly and illegally overcharged XXXX XXXX XXXX by {$1200.00}. Please refund the {$1200.00} amount to our account immediately Please refer to the agreement below If Customer does not make full payment of the Total Balance Due by the Due Date, then Customer shall pay a late fee equal to : ( i ) the greater of ( a ) seventy-five dollars ( {$75.00} ) or ( b ) 5.00 % of the New Balance ( defined below ), or ( ii ) the maximum amount permitted under applicable law if less than the amount in subsection ( i ). However, if Customer is deemed to be a High Credit Risk Account as defined below, the applicable late fee may be increased to the greater of up to seventy-five dollars ( {$75.00} ) or 9.99 % of the New Balance amount for each billing period for which full payment of the Total Balance Due amount was not received by the Due Date. In addition to a Late Fee, XXXX reserves the right to assess, and the Customer agrees to pay, an Interest Charge equal to the current Prime Rate + 23.99 % times the prior balance amount, pro-rated for the portion of a year represented by the billing frequency ( i.e., 1/52 for weekly cycle, 1/24 for semi-monthly, 1/12 for monthly cycle ), or the maximum charge permitted by law, whichever is less. The fact that XXXX may charge interest if Customer fails to make full payment of the Total Balance Due by the Due Date does not in any way authorize the Customer to elect not to pay such Total Balance Due by the Due Date, nor does it indicate that XXXX has consented to the failure by Customer to make such full payment. The New Balance amount on each Account is calculated just prior to the billing date and equals the Total Balance Due from the last Account statement plus any additional posted purchase transactions. XXXX also reserves the right to charge a Returned Check Fee of up to fifty dollars ( {$50.00} ) or the maximum amount permitted by law, whichever is less. If XXXX deems Account uncollectible or institute delinquency collection proceedings by sending Account to an outside collection agency or attorney for collection, Operator may stop sending Account billing statements. However, fees will continue to accrue whether or not XXXX sends Account billing statements. Customer must notify Operator of a change in Customer address by contacting customer service by telephone or mail. Operator will mail or deliver the billing statement to only one address

Company public response: Company has responded to the consumer and the CFPB and chooses not to provide a public response
Company response to consumer: Closed with explanation