Consumer complaint received 2019-03-25
Company: CITIBANK, N.A.
State: CA
Product: Credit card or prepaid card
Sub-product: Store credit card
Issue: Fees or interest
Sub-issue: Charged too much interest

Complaint:
I am an XXXX XXXX in XXXX  ( licensed in XXXX and XXXX ). I am also a customer of Citibank. I am the holder of the above-referenced account and of the Citibank Aadvantage Card  with the account number ending in XXXX. I am having a problem resolving a matter regarding the Best Buy account and am writing to solicit your assistance. I would not trouble you had I been able to resolve the matter through your customer service department. 

The week of XX/XX/XXXX I began receiving calls from Citibank. I assumed they were sales calls. I received a voice mail with a message that the calls had to do with my delinquent account. Not being aware of any delinquency I returned the call. I was told that my account was delinquent in the amount of {$870.00}. I indicated that this was not possible since I was in fact making ( large ) monthly payments on the Best Buy account. I am enclosing copies of the summary showing the payments I have made on the Best Buy account over the last 24 months. My on-line account will not allow me to go back further. I am also enclosing a summary of payments for the last year. You will note that in XX/XX/XXXX and XX/XX/XXXX I had a negative balance on the card of {$500.00} representing an overpayment I had made. How could there be any delinquency on an account on which an overpayment has been made? I was simply making large monthly payments since this was an interest-free offer and I wanted it paid in full well in advance of the expiration of the free interest period. 

This is where I became confused. I was told that there were actually two accounts. One was opened in XX/XX/XXXX and closed inXX/XX/XXXX. The second was opened sometime after XXXX. This was a surprise to me since I knew of only one account a Best Buy account. I did open the account in XX/XX/XXXX, again to take advantage of a promotional free interest offer. I was sure to pay the charges off to avoid the interest imputation. In XX/XX/XXXX and XX/XX/XXXXI made further purchases. I would have not done so had the prior balance not been paid in full. I also doubt that Citibank would have extended further credit had there been a delinquency. When I went to Best Buy I was told that there was another promotion and that my account was still in effect. They accessed my account utilizing my social security number. I was never told that another account was being opened or that I that I was not using the existing account. 

It was very difficult for me to try to piece together exactly what had happened. I am still not sure that I have accurate information. I have repeatedly requested account statements but have yet to receive them. However, what I believe to be the case is that the account was opened in XX/XX/XXXX, either with Citibank or the account was later acquired by Citibank. I can not tell. I made payments, as stated, to avoid the interest charges. However, I was told that the account was closed in XX/XX/XXXX how or why I do not know. Citibank claims that at the time the account was closed there was an outstanding balance on the account of {$74.00}. This was a surprise to me based upon the foregoing facts. When I asked how they got to {$870.00} I was told that it was the accrued interest that was charged based upon my failure to pay the account in full prior to expiration of the free interest period. 

You can no doubt understand my confusion. They claimed the account was closed with an outstanding balance. Again, I did not close the account and made payments sufficient to pay the amount in full during the free interest period. It seems that Citibank closed the old account and opened a new one at some time subsequent. I am not sure how they applied the payments I have made. But, it appears they have done so in a manner that would create a deficiency allowing them to charge the penalty interest. 

I explained the foregoing facts to the person I initially contacted. I was referred to their supervisor to whom I again explained. They agreed that the matter made no sense. They were also limited due to their inability to access records going back to the time in question. I was told that I would need to speak to the supervisors superior and request an abatement of interest. This I did and was told that the matter would be submitted for consideration. Just days later, on XX/XX/XXXX, I was contacted and told that the request for abatement was denied and that they would seek to recover the full {$870.00}. 

It also appears that Citibank had an incorrect address for me. They indicated that they had sent me letters, but they had all been returned as undeliverable. When I had them read me the address, I found that it was wrong. However, I didnt receive an adequate answer as to why I wasnt contacted by phone or email. They admitted they had my email address. They also had my telephone number. They had been calling me in an attempt to collect what they claim to be a delinquent debt. 

Last week while I was in Missouri, I received numerous phone calls from Citibank. They were calling about the same thing. On XX/XX/2019 I spoke to an individual who claim there was {$74.00} due on the account. I gave him a debit card to pay this sum. I knew he wasnt correct but if that would put everything on hold while I attempted to resolve it, I figured it would be money well spent. I have checked my account and see that the payment was not processed ( or perhaps not processed yet ). 

So it appears to me the Citibank closed and opened accounts to create the deficiency. They then waited three years to contact me via phone at a number they had since XXXX. The reason for this escapes me but is unacceptable. I mention the XXXX XXXX Citibank Card which I opened to gain miles for my charges made to the card. It has a high credit limit and availability. However, I have stopped using the card based upon this experience. I was extremely worried about continuing a relationship with Citibank if this were the way it conducted business. I will also never use any credit to make a purchase at Best Buy if, in fact, I continue to shop there at all. 

What I request is that : 1. This matter be resolved. 
2. The interest penalty be abated. 
3. Any damage to my credit be repaired.

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