Consumer complaint received 2020-10-22
Company: CITIBANK, N.A.
State: CA
Product: Credit card or prepaid card
Sub-product: General-purpose credit card or charge card
Issue: Fees or interest
Sub-issue: Charged too much interest

Complaint:
XX/XX/XXXX @ XXXX P/T - Called customer service @ XXXX. Spoke with operator to clarify payment allotment on credit card, as I called 2-3 times in the past about this with Citibank. Each time I am told that payments made will pay any fees, interest, cash advances first, along with the minimum payment due going towards lowest interest rate. Anything paid on top of this total will go towards any additional interest rates from lowest to highest. 

I only have 2 interest rates on my card : 10.99 % and 24.99 %. 10.99 % is a special promo interest rate balance transfer offer. On XX/XX/XXXX, I paid {$200.00} to go towards my bill that was due on XX/XX/XXXX. This bill, with payment due on XX/XX/XXXX, had a minimum payment of {$20.00}, interest of {$9.00}, and no fees. This bill showed that I made purchases of {$96.00}. My 10.99 % special balance transfer offer ending on XX/XX/XXXX had a balance on this bill of {$840.00}. After speaking and confirming with a previous agent in regards how allotment works with Citi, I analyzed that {$200.00} would cover my total interest on this bill, along with the minimum payment that goes to the lowest interest rate ( which would be the 10.99 % special promo balance transfer offer ), the balance subject to standard purchases of 24.99 % ( where the balance subject was {$74.00} ), and additional purchases that posted on this bill, which was {$96.00}. ( {$9.00} interest + {$20.00} minimum payment + {$74.00} balance + {$96.00} purchases = {$200.00} ). I was reassured last time when I spoke to a Citi agent that this would avoid any interest accrued on the 24.99 % interest rate. 

The current bill that is due on XX/XX/XXXX shows the allotment was done incorrectly, or that I was once again given misleading information from Citi. This month I noticed that my special promo balance transfer of 10.99 % interest that ends on XX/XX/XXXX was reduced from {$840.00} to {$760.00}, a reduction of {$81.00}. Once again, I was informed by Citi agents multiple times over the phone that minimum interest payments go towards lowest interest rate on card, which would be this on this portion. I was informed that out of the {$200.00} I paid last month that only {$20.00} ( which was my minimum due ) would go towards my special low interest rate balance. Once again, I became frustrated come to see my current bill that the allotment I was informed of multiple times about was not accurate. An overage of {$61.00} of my payment went towards my lowest interest rate when, from the information I was given over the phone multiple times informed me that only the minimum payment of {$20.00} would. I was upset seeing this along with a a higher interest charge of {$8.00} towards a balance of {$390.00}. I expect to be paying interest on my special balance offer of 10.99 % still, but I do not understand why more of my payments that I make each month is always going to the lowest interest of 10.99 when every time I am told that only the minimum amount due will be allotted to this portion. 

When I spoke to the operator today, she informed me on her screen she saw I had a standard purchase balance of over {$500.00} that interest was charged on, and she realized that I do not see this on my end ( my statements ). The in-house computer system at Citi is calculating different numbers than what they are informing accurately to the consumer. I strongly believe that there should be a proposition against credit card companies that they need to be clear and accurate in their allotments and charges, to make it easier for consumers to understand their bills and how payments are divided. Calling Citi and speaking to agents multiple times, where each one told me the same exact thing about allotment, I try to do what they advise to avoid higher interest charges, to only being surprised by unexpected higher interested charges that I was reassured over and over would not happen. 

I understand credit cards are a business, and they have to make money. But I feel this is stealing money from consumers who are trying to do the right thing, accepting the information on allotment provided by that credit card. I read over their small print, along with spoken numerous times with agents on the phone about this, and each time the agents tell me the same thing how allotment works. When I try to calculate how much to pay each month, I am always seeing a much bigger portion than just the minimum taken from my payment that pays towards the lowest APR.

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