Consumer complaint received 2020-12-26
Company: MUFG AMERICAS HOLDINGS CORPORATION
State: MN
Product: Credit card or prepaid card
Sub-product: General-purpose credit card or charge card
Issue: Advertising and marketing, including promotional offers
Sub-issue: Confusing or misleading advertising about the credit card

Complaint:
Union Bank has a broken interest rate calculation system that is charging consumers interest on purchases they did not make. Union Bank also has a promotional balance payment allocation system that is by design making it very difficult for consumers to pay off promotional balances before they expire when they have more than one promotional balance of the same interest rate. 

I have spent hours researching this issue on my credit card statements and have reported these two distinct issues to the company on three separate occasions and as of yet none of the {$33.00} in interest that has been incorrectly charged to my account since XX/XX/XXXX has been refunded. 

Issue 1 : Union Bank is charging " Interest on Purchases '' and " MINIMUM INTEREST CHARGE '' when there were no purchases made and the account has a {$0.00} purchase balance. Since XX/XX/XXXX I have been charged {$1.00} on " Interest on Purchases '' when I had a XXXX  purchase balance. I have also been charged a total of {$5.00} in " MINIMUM INTEREST CHARGE '' for which the company has had no explanation. Union Bank only agreed to stopping charging me this erroneous " MINIMUM INTEREST CHARGE '' monthly interest charge after I complained in XX/XX/XXXX, but as of yet none of the interest charged has been refunded. 

Issue 2 : On XX/XX/XXXX I had a promotional 0 % APR balance of {$3000.00} that was set to expire in XXXX of XXXX. On XX/XX/XXXX after making a total of {$0.00} in purchases and {$2600.00} in payments I had expected to have the promotional balance almost paid off, but my XX/XX/XXXX statement still showed a balance of {$1800.00} remaining. I called Union Bank twice on XX/XX/XXXX to ask why after making {$2600.00} in payments and no purchases was only {$1100.00} in payments were made towards my promotional balance expiring this year. On the first call I was told the {$1400.00} in payments I made had been put towards a 0 % promotional balance expiring in XX/XX/XXXX and not towards the 0 % promotional balance expiring in XX/XX/XXXX. When I asked why they would put the majority of my payment towards the promotional balance with the later expiration date I was told this is just how their system calculates it. When I informed them that this gave consumers very little ability to pay off promotional balances before they expired and asked to talk to a manager I was transferred and put on hold indefinitely and was forced to hang-up. 
When I called back a second time on XX/XX/XXXX and re-explained the situation to a new phone banker he again told me that is just how their system calculates interest. He agreed to open a " ticket '' to have the issue looked into but did not refund any of the {$27.00} in interest charged on the expired 0 % promotional balance which the system would not let me payoff before it expired.

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