Consumer complaint received 2021-11-29
Company: TD BANK US HOLDING COMPANY
State: CA
Product: Credit card or prepaid card
Sub-product: Store credit card
Issue: Problem when making payments
Sub-issue: Problem during payment process

Complaint:
My Target card payment is due on the XXXX of each month I paid the bill electronically on the XX/XX/2021 however the bank did not process the payment until the XXXX. So XXXX considered it a late payment and has since has charged me a late fee for XXXX for the month of XXXX and another late fee of XXXX for the month XXXX and now owe XXXX minimum due on an account I usually make {$40.00} payments on. I called Target card customer service on the XXXX after I discovered the issue and they advised that because there are many ways to pay the card that the due date is still the XXXX no matter the day it falls on The rep I spoke with advised me that this is in the terms however per the terms I reviewed it is not clearly stated : XXXX. PAYMENTS - We will send you a billing statement each month that your Account has a balance. Your billing statement will show the amount you owe us, which is called the New Balance, and the smallest amount you have agreed to pay us for that billing period, which is called the Minimum Payment Due. If any portion of the New Balance is delinquent, the statement will show the Amount Past Due. The statement will also tell you the Payment Due Date. 
The Minimum Payment Due each month will equal the greater of a ) {$29.00} ; or b ) the sum of the following : 1 % of your New Balance ( rounded to the next higher whole dollar amount ), any Interest Charges, any Returned Payment Fees, and any Late Payment Fees. We may round your Minimum Payment Due to the next higher whole dollar amount. If there is an Amount Past Due, we will also add that amount and include it in your Minimum Payment Due. If your New Balance is less than {$29.00}, the Minimum Payment Due will be the entire New Balance. 
Your minimum payments will be allocated in our discretion. Payments in excess of the minimum payment will be allocated in accordance with applicable law. 
You agree to pay us in United States dollars. If you pay by check, your check must be drawn on a depository institution located in the United States. 
If you do not pay the New Balance in full, you agree to pay by your Payment Due Date at least the Minimum Payment Due. You may, at any time, pay XXXX XXXX XXXX XXXX  ) the total amount owing on your Account. Payments are posted to your Account in a timely manner as required by law. However, we may delay restoring your available Credit Limit in the amount of the payment to make sure we receive the funds. 
At our option, we may obtain payment for any check or other instrument that you send to us by initiating an electronic ( including XXXX XXXX XXXX  ) transfer from your depository institution account in the amount of your check or instrument. Your check or instrument will not be returned to you by us or by your depository institution. Your depository institution account may be debited as early as the same day we receive your payment. If we can not process the electronic transfer or if the electronic transfer is returned to us, we may present the original check or other instrument, a substitute check, draft or similar instrument to obtain payment. 

BALANCE COMPUTATION AND PAYING INTEREST CHARGES- We calculate a Daily Balance for your Account. We may maintain separate balances for your Purchases and special promotional Purchase balances ( each, a Balance Type ) and calculate a Daily Balance for each. To determine the Daily Balance for a Balance Type, each day we take the beginning balance for the Balance Type, add any new charges included in that Balance Type, and subtract any payments and credits applied to that Balance Type. We then multiply the resulting balance by the applicable Daily Periodic Rate. The resulting daily Interest Charge is included in the beginning balance of that Balance Type for the next day. Purchases are included in the Daily Balance as of the later of the transaction date or the first day of the billing period in which the Purchase is posted to the Account.

Fees are included in the Daily Balance of Purchases when posted to the Account. 
We figure the Interest Charge on your Account for each Balance Type by multiplying your Daily Balance of each Balance Type by the applicable Daily Periodic rate for each day in the billing cycle. 
At the end of the billing period, we will add up the daily Interest Charges on all Balance Types for each day in the billing period to get the total Interest Charge for the billing period.

XXXX XXXX XXXX XXXX XXXX  Interest Charges begin to accrue on Purchases as of the day the Purchase is included in the Daily Balance. However, if you paid the New Balance that was shown on your previous billing statement by the Payment Due Date on that statement, then ( XXXX ) we will not impose Interest Charges on Purchases during your current billing period if you pay the New Balance shown on your current billing statement by the Payment Due Date on that statement, and ( XXXX ) we will credit any payment ( to the extent the payment is applied toward Purchases ) as of the first day in your current billing period if you make a payment by the Payment Due Date that is less than the current billing periods New Balance. 
If a New Balance was shown on your previous billing statement and you did not pay the New Balance by the Payment Due Date on that statement, then we will not impose Interest Charges on any Purchases during the current billing period if you pay the New Balance shown on your current billing statement by the Payment Due Date on that statement. 
Please note that if your Account has a promotional balance, this may impact how we are required to apply your payments and whether you can take advantage of these terms regarding Interest Charges on Purchases. 
MINIMUM CHARGE FOR BILLING PERIOD - For any billing period in which an Interest Charge is imposed on your Account, there is a minimum interest charge of {$1.00}. 
XXXX. FEES - The following fees may be assessed on your Account. 
LATE PAYMENT FEE - You will pay a Late Payment Fee of {$29.00} when any amount due remains unpaid after your Payment Due Date. Any subsequent Late Payment Fees will be {$40.00} until you make your required Minimum Payment Due by the Payment Due Date for six consecutive billing periods. In any event, the Late Payment Fee will not be greater than your Minimum Payment Due for the billing period for which your payment was late. 

As of today the issue has not been resolved.

Company response to consumer: Closed with monetary relief