Consumer complaint received 2021-04-16
Company: Army and Air Force Exchange Service
State: CO
Product: Credit card or prepaid card
Sub-product: Store credit card
Issue: Problem when making payments
Sub-issue: Problem during payment process

Complaint:
I do not understand how Military Star is calculating my minimum payment due or how my payments are being applied. I called in a month ago on or about XX/XX/XXXX to ask about the minimum payment calculation because my balance on my account was {$850.00} and my minimum payment due was {$220.00}. This seemed excessive to me as it is a third of the balance. The agent at that time did not know and so it was sent up for review. I received my new statement today XX/XX/XXXX. My account balance is {$750.00} and the minimum payment due is {$240.00}. My balance went down but minimum payment went up. I immediately called to inquire. The agent XXXX reviewed the notes. She read them to me and said that the plan we were originally set up on in XXXX was changed and no longer valid. We now were under a new plan. I was already lost at this time and asked if she would send me the info in writing. She told me I had to request it in writing or it cant be sent. I initiated the research on the phone but yet they are refusing to send me the outcome in writing. I then asked to speak to a supervisor. XXXX came on the line and proceeded to tell me that the old plan had 36 MO to be paid of and the terms and conditions were on my statement. I looking at my statement I asked him to point out where it says that the old plan was expiring. He could not. I told him that there is a column for this information but it was blank. I asked again how the minimum payment is calculated. He said based on the interest rate for the two different plans I now had on account. One at 9.99 % ( old plan ) and the other at 10.24 %. After several attempts to understand what he was trying to tell me about this I still was not able to. He kept referring to items on my statement that were NOT on my statement. I asked how was I supposed to know when the 36 month period started and would end. He continued to tell me it was on my statement but it is most definitely not. I told him that they were just taking advantage of customers by not providing the information on the statement or on the phone. He also could not tell my how my minimum payment was calculated. He asked if I wanted to speak with a manager. XXXX came on the phone. I asked the same questions and got the same answers. I then asked how was I to know how my payments were being applied and to which account. She only told me that it was applied to the higher interest rate account ( newer account ) I asked again how was I to know when the older account would expire if there is no expiration date listed. She also could not tell me how my minimum balance due was calculated. It was in the Terms and Conditions and Important Notices section. Well in the Important Notices section on my statement dated XXXX XX/XX/XXXX it says my " Calculated Minimum Payment Due is {$230.00}. This amount may not be equal to your Current Min. Payment Due or your Total Min payment due if your account is past due or paid ahead '' I asked again. How am I supposed to know and where can I find this info about the status of each account on my statement if there is not info about where my payment was applied or when the 36 mo was going to end. She could not tell me. She also told me that I had to call in and tell them where to apply the payments. My payments are made automatically through my bank. At this point I'd like to know if its legal to : 1. Not tell me how the minimum payment due is calculated.

2. Not tell me how my payment is applied if I do not indicate.

3. Not tell me the status of an account and when it is set to expire if it was set up in XXXX.

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