Consumer complaint received 2017-11-06
Company: U.S. BANCORP
State: VA
Product: Credit card or prepaid card
Sub-product: General-purpose credit card or charge card
Issue: Fees or interest
Sub-issue: Unexpected increase in interest rate

Complaint:
Have  had card with Service Provider since XX/XX/XXXX and have had excellent overall payment history with same.

Recently due to a misunderstanding I made two payments in XXXX, and thought the one made at the END of XXXX  covered my XXXX payment.

Here is the Account History as shown on XXXX Website XX/XX/XXXX showing drastic jump in interest rate XX/XX/XXXX which has increased to 28,.99% without warning nor in my opinion justification sufficient to warrant same noting that a late fee was paid $XXXX on XX/XX/XXXX:

TRANSACTION DATE     POSTING DATE         DESCRIPTION     AMOUNT
XX/XX/XXXX     XX/XX/XXXX     +    
XXXX XXXX XXXX XXXX CA
    $XXXX
XX/XX/XXXX     XX/XX/XXXX     +    
XXXX *XXXX XXXX CA
    $XXXX
XX/XX/XXXX     XX/XX/XXXX     +    
XXXX XXXX CA
    $XXXX  
XX/XX/XXXX     XX/XX/XXXX     +    
XXXX *XXXX XXXX CA
    $XXXX  XX/XX/XXXX     XX/XX/XXXX     +    
XXXX *XXXX XXXX CA
    $XXXX
XX/XX/XXXX     XX/XX/XXXX     +    
XXXX,XXXX XXXX CA
    $XXXX
XX/XX/XXXX     XX/XX/XXXX        
INTEREST CHARGE ON PURCHASES
    $XXXX  
XX/XX/XXXX     XX/XX/XXXX     +    
XXXX XXXX CA
    $XXXX
XX/XX/XXXX     XX/XX/XXXX        
PAYMENT THANK YOU
    -$XXXX  XX/XX/XXXX     XX/XX/XXXX        
INTEREST CHARGE ON PURCHASES
    $XXXX
XX/XX/XXXX     XX/XX/XXXX        
LATE FEE - PAYMENT DUE ON XX/XX/XXXX
    $XXXX  
XX/XX/XXXX     XX/XX/XXXX     +    
XXXX,XXXX XXXX CA
    $XXXX
XX/XX/XXXX     XX/XX/XXXX     +    
XXXX XXXX CA
    $XXXX
XX/XX/XXXX     XX/XX/XXXX        
PAYMENT THANK YOU
    -$XXXX
XX/XX/XXXX     XX/XX/XXXX     +    
XXXX *XXXX XXXX XXXX WA
    $XXXX
XX/XX/XXXX     XX/XX/XXXX        
INTEREST REVERSAL
    -$XXXX
XX/XX/XXXX     XX/XX/XXXX        
INTEREST CHARGE ON PURCHASES
    $XXXX
XX/XX/XXXX     XX/XX/XXXX        
PAYMENT THANK YOU
    -$XXXX
XX/XX/XXXX     XX/XX/XXXX     +    
XXXX,XXXX XXXX CA
    $XXXX
XX/XX/XXXX     XX/XX/XXXX     +    
XXXX *XXXX XXXX   CA
    -$XXXX
XX/XX/XXXX     XX/XX/XXXX     +    
XXXX *XXXX XXXX XXXX CA
    $XXXX

Here is the exchange by Message on XXXX Website XX/XX/XXXX

Date: XX/XX/XXXX
Message #: XXXX  From: Cardmember Service
Subject: Payment Amount

Message:

Dear ______XXXX:

Thank you for contacting XXXX XXXX XXXX via our Website about your Visa Business account ending in XXXX.

After reviewing your account, we show it is set up to be Centrally Billed. This means that you have one consolidated statement for all of your business credit cards issued, rather than separate statements for each credit card on your business account. Therefore, when logged in to Online Banking, your individual credit card is not showing the amount due, because your balance automatically transfers to your central billing account at the end of each statement cycle.

However, you can view your central billing account balance via Online Banking. Log in to your account and click on Select Account from the menu on the top left-hand side of your screen. Next, select Accounts Payable from the list of accounts and your balance will appear.

Please note the minimum payment on your account for your XX/XX/XXXX statement was calculated as follows: 1% of your balance less fees and Interest Charges or $XXXX minimum $XXXX, plus the Late Payment Fee $XXXX, plus Interest Charges $XXXX, plus the past-due amount $XXXX, which equals the $XXXX minimum payment when rounded up to the next whole dollar amount.

Please contact us again if we can be of further assistance.

Sincerely,

XXXX XXXX.
Cardmember Service Advisor

On XX/XX/XXXX at XXXX XXXX  the following message was sent:

I cannot determine how this payment was arrived at.
I had a payment due of $XXXX, and this is larger than normal.
Nothing unusual has taken place of which I am aware.

Next Minimum Payment: $XXXX
Last Statement Balance: $XXXX
Current Balance: $XXXX



Here is the exchange by Message on XXXX Website XX/XX/XXXX

Read a Secure Message
Date: XX/XX/XXXX
Message #: XXXX  Subject: Interest Rate Escalation Unacceptable

Message:

A review shows excellent payment history for about twenty years.
I made two payments in XXXX, one mid month and the other end of month.
I thought the later payment covered the XXXX due amount as it appeared to do when making same. This unfortunately resulted in a missed XXXX payment.
This was reviewed in our message of XX/XX/XXXX and as far as I know was resolved OK.

Kindly return my account to a normal state as otherwise it precipitates a hardship.

In the alternative I am willing to settle out the account for $XXXX now to close it out permanently. Please let me know at once as I am holding funds out for this specific purpose which are otherwise needed elsewhere in short order.

Thank you for taking such a hard line with me after twenty years.
You would not know a good customer if you fell on her.

On XX/XX/XXXX at XXXX XXXX  the following message was sent:

There was an error or issue which was resolved and payment was made.

You were to NOT change the rate and must not with my high balance.

Otherwise you will precipitate a hardship resulting in non payment.

Neither of us wants THAT outcome. My situation can be managed otherwise.

The vicious and undeserved attack is unsustainable and unmerited.

I have a very long good history with you dating back to XX/XX/XXXX.

NOW PLEASE CHILL OUT AND FIX THIS OR I MUST PUT ALL MY ACCOUNTS ON A PAY FREEZE

THIS WILL RESULT IN A HARDSHIP ELECTION BEING FORCED ON ALL ACCOUNTS

THIS IS NOT AN OUTCOME WHICH I WANT NOR WHICH IS NECESSARY

YOU WAIVED THE ACTION EARLIER BUT ARE NOW RENEGING ON OUR AGREEMENT OTHERWISE.

PLEASE REPENT OF YOUR VICIOUS ATTACK ON MY PERSON AND OUR MUTUAL WELL BEING

On XX/XX/XXXX at XXXX XXXX Cardmember Service  wrote:

Dear ______ 

Thank you for contacting XXXX XXXX XXXX via our website about your Visa Business account ending in XXXX.

Our records indicate that your Annual Percentage Rate APR has changed to Prime + 24.74% currently 28.99% due to late payments made on the account. This APR will remain in effect until there have been six consecutive months of on time payments and your account remains under its limit. After that time your APR will automatically decrease to your regular purchase rate of Prime + 7.5% currently 11.75% on XX/XX/XXXX. Unfortunately, we cannot remove the penalty APR before that time. We apologize for any inconvenience this may cause you.

Please contact us again if we can be of further assistance.

Sincerely,

XXXX XXXX.
Cardmember Service Advisor

On XX/XX/XXXX at XXXX XXXX  the following message was sent:

I am uncertain why you have escalated my interest rate but I dispute this action and ask that you reduce it to 9.9% at once and adjust my payment due accordingly.

I have had your card for quite some time and have diligently maintained a good relationship despite the usual occasional exception. I find no justification for such a drastic interest rate and I cannot pay it without undue hardship in any case.

Thank you. Your immediate cooperation will insure immediate payment of the to be adjusted amount and henceforth likewise. Please send emails to XXXX_____XXXX

Unfortunately this resulted in the account being flagged for non payment of XXXX and a Late Fee being assessed.  I discussed this with the Service Provider on XX/XX/XXXX and it appeared that the matter was resolved, and I made further payment to cover all which was due.

A few days ago I saw that a HUGE interest charge was being assessed at 28.9% which I cannot afford and creates a hardship. They now say that the late payment is the cause and that I must suffer six months of penalty interest because of it.  After being a good cardholder customer for nearly 25 years this is outrageous and it would cause me great harm.  My obligation is near the card's limit of $XXXX.
Ty XXXX 
	
XX/XX/XXXX (2 days ago)

Now what do I do? This SUCKS.

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