Consumer complaint received 2020-12-08
Company: CITIBANK, N.A.
State: IL
Product: Credit card or prepaid card
Sub-product: General-purpose credit card or charge card
Issue: Advertising and marketing, including promotional offers
Sub-issue: Didn't receive advertised or promotional terms

Complaint:
I began the statement period on XX/XX/20 with a statement balance of XXXX. On XX/XX/20, I made a purchase on XXXX for {$580.00}. I was prompted with an offer to use a Citi card to qualify the purchase for 0 % APR for 24 months via a Citi Flex Plan. On XX/XX/20, I made a payment of {$300.00} to cover the previous statement balance. According to my statement ending XX/XX/20 ( due XX/XX/20 ), my flex plan balance had gone from XXXX to XXXX. With a total balance {$1000.00} categorized as standard purchases. I had made a series of returns for transactions as standard purchases throughout the XXXX period. It appears that the credit for some of these standard purchase returns were used to offset my XXXX interest balance, while new purchase continued to add to my standard purchase balance. However, multiple representatives could not confirm the cause of the reduced balance. 

On XX/XX/20, I called customer service and spoke with an account specialist who assured me the full balance of XXXX would be reinstated as a flex plan balance, and that this would occur in 3-5 business days. On XX/XX/20 ( the 5th business day ), I reached out to customer service via chat to check on the status of the balance transfer, as my payment due date was the following day and failure to transfer the balance would subject it to interest rate charges. The representative told me to check at XXXX and I would see the balance transfer. On XX/XX/20 ( my payment due date ), I received a letter dated XX/XX/20 that my balance transfer could not be reinstated without any further explanation. I subsequently called customer service again, who was unable to offer any assistance or explanation. The only solution offered was to put in a request for reinstatement, without any guarantee that it would be successful, or solution to my concern that an open balance would result in an interest charge. As a result, I had to pay off the remaining balance so as to avoid interest rate charges on this balance. 

Further, when I asked to file a complaint, the representative initially claimed that she was unable to do so. It appears she was unaware of how to complete this or who to contact, as she asked me who I would like to be transferred to. After a final request to talk to anyone who could put me in touch with compliance, she offered to transfer me to a US representative who was finally able to file a complaint. 

Without any helpful context from customer service, it appears the application of return credits can be used to offset XXXX interest balances, despite standard purchases being made in the same period. This is deceptive and manipulative, as it allows return credits to be used to offset XXXX interest balances, while standard purchase balances with high interest rates are allowed to accrue. Further, it makes it difficult for consumers as they must always pay attention to their current balance, minus their XXXX interest balance, when making returns, or risk their return credit being applied to the XXXX interest balance when standard purchase transactions will be made soon thereafter.

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