Consumer complaint received 2023-10-02
Company: CITIBANK, N.A.
State: NC
Product: Credit card
Sub-product: Store credit card
Issue: Problem when making payments
Sub-issue: Problem during payment process

Complaint:
On XX/XX/XXXX, I called THD Credit Card Services and made a payment in the amount of {$750.00}. I asked the representative to apply payments as follows : 1 ) apply a requested amount toward a monthly minimum payment, 2 ) the rest of the money apply toward promotional balances starting with the oldest. The rep XXXX ( XXXX ID XXXX ) and rep XXXX from the financial (? ) department assured me that the payments will be applied as directed. XXXX also read the statement/disclosure indicating that the allocation will be applied as discussed. The call was recorded on XX/XX/XXXXXXXX  @ XXXX XXXX EDT. On XX/XX/XXXX, I called THD CC Services and made another payment in the amount of {$640.00} to close the promotional balance only which expires on XX/XX/XXXX. I made two payments during the same billing cycle ( XX/XX/XXXX and XX/XX/XXXX ), the minimum monthly payment was covered during the XX/XX/XXXX payment. The due date is the XXXX day of each month. The reference number is XXXX XX/XX/XXXX @ XXXX XXXX EDT. On XX/XX/XXXX, I noticed that the payment in the amount of {$640.00} was not applied toward my expiring promotional but applied only partially and the monthly minimum was taken out of this payment again leaving the outstanding balance of {$450.00}. I called back on XX/XX/XXXX, at XXXX XXXX EDT. The rep XXXX from a supervisor team assured me during the verbal statement on a recorded line that my payment in the amount of {$640.00} made on XX/XX/XXXX will be re-applied toward an expiring promotional as a requested XXXX  out the outstanding balance. Today, XX/XX/XXXX, I noticed that the outstanding balance of promotional charges in the amount of {$640.00} is indeed XXXX out, but the balance was moved to an earlier closed promotional charge which now generates compound interest daily. This is not a first assurance when THD CC services employ deceptive practices. The consumer has no options to make payments as needed, instead, the consumer is forced to call in to request an allocation otherwise the promotional charges can not be paid overtime but must be paid along with the monthly payments. The CC Services do have the option to allocate additional money to promotional charges, but the consumer can only select up to 3 expiring promotional charges and the funds will be allocated in the way that only 33 % will be allocated to the first promotional charge, 33 % to the second, and 33 % to third, or if a consumer selects to pay off two promotional charges, then only 50 % will go toward the first selected charge, and 50 % to the second promotional charge. But if the consumer wants to pay off several ( two or more ) promotional charges at the same payment, there is no way to select 100 % for each promotional outstanding balance. The consumer must call in. However, even if the consumer calls in and requests payment allocation, that does not guarantee that the payments will be allocated as requested. The payments can be allocated whatever the " system '' allocates which makes the tracing of allocation of funds incredibly difficult. This is a deceptive practice by THD CC services and I am certain that many if not thousands or hundreds of thousands of consumers are affected by this practice. I am also asking the Consumer Financial Protection Bureau to initiate a thorough investigation into the THD CC services and take legal action against financial THD CC Services that engage in unfair, deceptive, or abusive practices. Thank you

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