Consumer complaint received 2023-02-25
Company: CITIBANK, N.A.
State: CA
Product: Credit card or prepaid card
Sub-product: General-purpose credit card or charge card
Issue: Fees or interest
Sub-issue: Charged too much interest

Complaint:
On XX/XX/XXXX I transferred a balance of {$1100.00} to my Citibank credit card. At this time, I was taking advantage of a promotional offer of 0 % apr on transferred balances. This promo apr was to expire on XX/XX/XXXX. 

At the time of this transfer, I also had an existing fixed-repayment balance on this card, something Citibank calls a " flex loan. '' This " flex loan '' balance is and was subject to a apr of 6.99 %. 

As my most recent statement, dated XX/XX/XXXX, confirms, the promotional apr rate for transferred balances expired on XX/XX/XXXX, increasing the apr on the remaining {$700.00} from my balance transfer to 22.49 %. 

On XX/XX/XXXX, I reached out to a Citibank representative to confirm that any payment above the minimum payment due ( {$330.00} ) would be applied to the highest apr balance, in accordance with federal law. I had this conversation over online chat, and I preserved a screenshot of the conversation. This was my third time reaching out to Citi. I had wanted to make the payment sooner so as to be doubly sure of avoiding any extra interest charges, but I was told expressly that so long as the 0 % rate was in effect any payment would be credited to the 6.99 % " flex balance. '' I was further instructed that I had to wait specifically until the XXXX XXXX XXXX in order for my payment to be credited toward the balance-transfer balance, which by then would be the higher apr balance ( at 22.49 % ). 

In accordance with the guidance I received from Citi, I initiated a payment on XX/XX/XXXX for {$1000.00} ( the amount of the minimum payment due plus the remaining balance-transfer balance ). Incidentally, when I initiated this payment through Citibank 's website, the website expressly confirmed that this was the amount I need to pay to satisfy my " flex loan '' payment and pay off what Citi calls on my statement the " adjusted new balance '' ( not a new balance at all in fact, just the remainder of the original balance transfer from last XXXX ). 

My statement indicates however that the payment was allocated entirely to the " flex '' balance. I still have a {$700.00} balance at 24.49 % apr. 

I reached out to Citi on XX/XX/XXXX to ask them to correct the misallocated payment. The agent told me that there was an " accounting issue '' with my card. I asked to be transferred to a supervisor, after which the supervisor, XXXX, told me that Citibank would " review '' my account and " give a decision '' after XXXX business days. 

I really have a hard time believing that these kinds of practices on the part of the banks are innocent accounting mistakes. In this case I made a good-faith, proactive effort to confirm that I was timing my payment in such a way as to ensure that it would be credited to the higher-apr balance. Citi seems to have ignored both the law and what they claim is their own policy, and they have saddled me with a balance that is still accruing exorbitant interest charges as we speak. In my view, Citibank 's behavior in this matter is quite predatory and clearly illegal.

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 monetary relief