Consumer complaint received 2019-07-15
Company: BARCLAYS BANK DELAWARE
State: FL
Product: Credit card or prepaid card
Sub-product: General-purpose credit card or charge card
Issue: Other features, terms, or problems
Sub-issue: Other problem

Complaint:
On XX/XX/XXXX I contacted Barclays Visa regarding transactions on my credit card statement. Barclay offered transfer balances/promotional checks interest free through specified dates. I availed myself of those " convenience checks '' and used them since there the interest rate is 0 % through specified dates. Upon reviewing the schedule of convenience checks which were used, I learned from the credit card company of how they post the payments which are made to the account. 

The complaint that I am filing due to the fact that the methodology used to apply the consumer payments is an abusive practice which puts the consumer at a significant disadvantage and allows the credit card company to manipulate the payments made on the account in a manner which unfairly penalizes the consumer. 

Here is what they do : There is a balance carried on Standard Purchases : in my case it was {$1000.00} ( 29 % APR ) There are also numerous Balance Transfer/Check Promotions which were taken out by me on numerous occasions with different ending promotional dates upon which any remaining balance will then be charged at the specified interest rate of 29 %. 

I make payments greater than the minimum amount. I was expecting that the entire payment amount would be applied to the balance with the highest interest rate. I wanted to payoff the balance since there is an APR of 29 % whereby the other balance transfers have a 0 % APR until a date out in the future. Barclays stated that anything above the minimum amount is applied to the other balance transfer/check promotions in any manner which they desire to apply them. I requested that they apply the entire payment that I made to the amount with the highest interest rate but they stated that they will not do it. The company then proceeded to apply the remaining payment to a check balance /transfer which was just taken out. When I asked why didn't they apply the amount to the oldest transfer balance ( since this amount will start to accrue interest on XX/XX/XXXX ) they indicated that they can apply it to any amount they want.. In my case they applied the remaining payment to the balance transfer/promotional check with the lasted date ( XX/XX/XXXX ) where the balance will start to accrue on XX/XX/XXXX. 

The remedy which I am looking from Barclay is for them to apply the payment made on the account in a manner which is proper and fair. Payment which be applied in their entirety to the balances with the highest interest rates thereby allowing a fair and equitable reduction on balances with the highest rates. Furthermore, if appropriate then a payment should be allocated to the balances with the earliest coming promotional dates. Barclay should not be allowed to take advantage of consumers. Furthermore, clear and plain disclosure of this practice and not made. 

Documentation can be submitted upon request.

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