Consumer complaint received 2019-10-17
Company: FIFTH THIRD FINANCIAL CORPORATION
State: OH
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:
Looking at my XX/XX/XXXX statement ( Exhibit A ) one sees two segregated balances : - {$9500.00} in current purchases ( on a special promotion to end  XX/XX/XXXX ) - {$9900.00} in current cash ( not on a special promotion ) On XX/XX/XXXX, a {$5000.00} payment was made into the account and fully posted on XX/XX/XXXX to the current purchases balance ( XX/XX/XXXX statement- Exhibit B ). 
On XX/XX/XXXX, the promotional period lapsed on the current purchases balance. Rather than moving to an interest rate of 24.99 % the current purchases balance remained at a low rate. 
However, the current cash balances interest rate, under no special promotional rate according to the statements, rose 500 % to an interest rate of 24.99 %. 

It is my understanding that the federal Credit Card Act of 2009 requires the application of payments be made to the higher interest rate balance after the minimum payment, any late fees or balance transfer fees, etc. are first deducted until such balance is paid off. This did not occur. 

The current cash balance remained at {$9900.00} from the date of the XX/XX/XXXX posting of the {$5000.00} payment through the end of XXXX. 

As may be seen in the attached statements no payments were applied to what would become the higher interest rate cash balance portion of the amount owed. 

As I state above my belief is that all payments, including the large {$5000.00} payment, should be applied to the higher interest rate cash balance portion of the account. 

On XX/XX/XXXX I spoke with a customer service representative, XXXX, in the banks credit card department. She was unable to answer the above question. I asked to speak with her supervisor, whose name she told me is XXXX XXXX. She apologized stating he was in a meeting and could not be disturbed. 
I then asked whom I might speak with to answer my question. I was transferred to another supervisor, XXXX, who refused to identify himself other than his first name and his badge number, XXXX. 
We had a XXXX minute conversation during which he said he could see nothing amiss. Finally he admitted there were some irregularities and stated well look into it. 
He explained that due to security reasons he could not give me his last name or his telephone number. 
With absolutely no means of following up I requested to speak with his supervisor. He said he would not do this nor would he allow my question to escalate any further. 
He did, however, promise to send my complaint to the Office of the President.  However, upon my asking, he stated he had no access to either a phone number or the name of anyone in the Office of the President. 
He also stated he was unable to provide me with either a time frame for response nor provide me a copy of my complaint. 

Then a response in letter form dated XX/XX/XXXX from XXXX XXXX of the Office of the President was received ( attached Exhibit D ). 
Her letter did not address my question regarding the XX/XX/XXXX payment. It did a thorough job of outlining the 2008 CARD Act but failed to apply its provisions to the {$5000.00} payment. 
Over the next several weeks I attempted to contact her. I enlisted my father, a XXXX XXXX and a XXXX XXXX  XXXX, to assist. After some half a dozen phone calls to XXXX XXXX, she returned his call. He requested and she permitted him to send her the following email ( dated XX/XX/XXXX ), with a copy to me : Dear XXXX XXXX, Thanks for taking the time this morning to speak with me. 

As I mentioned over the phone our primary request for explanation concerns a {$5000.00} payment made on XX/XX/XXXX and credited to the credit card account on XX/XX/XXXX. 

This credit card account has two segregated balances within the total amount owed the bank : ( 1 ) current purchases ( on a special promotion to end XX/XX/XXXX ) ( 2 ) current cash ( not on a special promotion ) On XX/XX/XXXX the {$5000.00} payment was posted only the current purchases balance, not to the current cash balance. 

Its my understanding that under the federal Credit Card Accountability, Responsibility and Disclosure Act of 2009 ( CARD Act of 2009 ) theres a requirement to see the application of payments be made to the higher interest rate balance after the minimum payment, late fees or balance transfer fees, etc. are first deducted and continue until such higher interest balance is paid off. This did not occur. 

The full {$5000.00} was credited to current purchases. 

On XX/XX/XXXX, the promotional period lapsed on the current purchases balance. Rather than moving to an interest rate of 24.99 % the current purchases balance remained at a low rate. 

However, the cash balances interest rate, under no special promotional rate according to the statements, rose to an interest rate of 24.99 %. 

My hope is to see the XX/XX/XXXX {$5000.00} payment posting be applied to the current cash balance portion, this being what turned out to be the higher interest rate balance, after any required minimum payment, fees, etc. are applied as are mandated under the 2009 CARD Act. 

If you have a chance please call my cell ( XXXX ) XXXX to let me know youve received this email. 

I understand your response will be to the account owner, XXXX XXXX XXXX, at : XXXX XXXX XXXX XXXX, OH XXXX Thank you again for your time and effort. 

XXXX XXXX After not receiving a return call from XXXX XXXX acknowledging the emails receipt and after waiting 10 days for such acknowledgement, my father made several more calls and XXXX XXXX did at last respond with an acknowledgement of the emails receipt. 
It has now been well over a two months with no further response. 
Im therefore reluctantly submitting this complaint.

Company response to consumer: Closed with explanation