Consumer complaint received 2020-10-22
Company: TD BANK US HOLDING COMPANY
State: GA
Product: Debt collection
Sub-product: Credit card debt
Issue: False statements or representation
Sub-issue: Attempted to collect wrong amount

Complaint:
I purchased a new XXXX XXXX XXXX XXXX phone from XXXX XXXX. They arranged financing through TD Bank XXXX  Financing. I was approved for financing and started to receive access to my new account via emails ( before I ever got any statements in the mail ). I sent up my account online and liked it to my checking account. During the solicitation of the purchase and financing I was told I could make 36 payments for the remaining balance with no interest. Once I set the account up online i sent a test ( {$35.00} on XXXX ) payment into the account just to make sure the account was working properly for payment. It was accepted and the money was taken from my bank account and my online account balance owed for XXXX/TD Bank XXXX was reduced accordingly. 

I subsequently got a welcome letter in the mail from XXXX/TD Bank XXXX welcoming me to the family so to speak. With that information was an indication of how much the monthly amount would be so I went back on line and made another payment ( {$2.00} on XXXX ) which would have put me above the amount required to pay by the first installment. On XX/XX/XXXX I made another payment of {$5.00} based upon what i saw online was " due ''. By this point I had paid in excess of what was required for the first monthly payment due on XXXX. 

On XX/XX/2020, I got a courtesy email from TD Bank  XXXX  Financing ( XXXX XXXX # XXXX ] TD XXXX Payment Reminder ) which stated, " Your TD XXXX  credit card payment is due on XX/XX/2020. If you have already sent in at least your minimum payment, please disregard this reminder. '' I knew by this time i had sent well in excess of the required monthly minimum payment. To my surprise i went online today to check my account and there was a LATE CHARGE of {$27.00}. I called XXXX Customer Service first. They in turn referred me to TD Bank XXXX  Financing at XXXX and i spoke with a representative by the name of XXXX. 

XXXX tried to tell me that because I sent them money ( which they accepted and credited towards my balance ) before the start of the first billing period it was not considered or given credit for the first billing statement and was only applied to the principle balance! In essence i should have waited until i got a bill before sending them any money even though they accepted the money and credited towards my balance but not towards the first monthly payment which was due according to them on the XXXX of XXXX. 

They offered to remove the late fee ONLY IF i paid the remaining amount they considered owed in the billing window. from the time the first statement was issued and the due date. 

This is in my opinion a deceptive practice and a de facto pre payment penalty! If they had refused acceptance of the payments prior to a bill being sent that would be one thing. However they accepted the payments and put them towards my balance before the due date. There is no excuse why those payments were not considered as satisfying the first monthly installment if they were received before the due date and after the account had been established and showed a balance owed. 

I notified them that i was not satisfied and I do NOT want any record on my credit regarding a late fee or failure to pay as agreed. One of the XXXX representatives stated before I was transferred to TD Bank XXXX  that " the system '' didnt understand prepayments '' Thats not my problem. I specifically paid early so this would not happen while waiting on the first bill. 

This is a bait and switch!!

Company response to consumer: Closed with monetary relief