Consumer complaint received 2017-07-12
Company: JPMORGAN CHASE & CO.
State: CO
Product: Credit card or prepaid card
Sub-product: General-purpose credit card or charge card
Issue: Problem when making payments
Sub-issue: Problem during payment process

Complaint:
Earlier this year, I telephoned the customer service department because the overpayments I had made in XX/XX/XXXX were not credited properly to my balances. I had called on a weekend and the man I spoke with agreed that my overpayments had not been properly applied to the balances but said that I would have to call back during business hours during the week in order to see if someone would correct it. <P/>I have made numerous calls and have never gotten a clear explanation of why my balances were not credited in the manner in which I believe they should. Two weeks ago, I spoke with someone in customer service once again ( always asking for a supervisor ) and was told that I could either write in or go to a branch. I decided to go to a branch ( XX/XX/XXXX ) and was then told by the branch manager, XXXX. XXXX, Vice President, at the XXXX XXXX, XXXX XXXX XXXX XXXX XXXX XXXX XXXX, CO XXXX that they no longer handled these types of complaints and that they were handled by a centralized unit now. He was very nice and helped to get a supervisor on the line to assist me which still did n't get anywhere. XXXX XXXX told me that as I had mentioned the possibility of filing a complaint with the CFPB, they would have this sent to an executive branch and that I would be receiving 2 calls, one from this executive unit and another from the customer service supervisory unit. <P/>I received a call from XXXX in the Branch escalation unit on XX/XX/XXXX. I was driving at the time for XXXX/XXXX and could not speak with her. I then called back yesterday morning and she just forwarded my call to a woman by the name of XXXX who is a supervisor at the Chase Credit Card Services department. All she would continually say to my queries was that all overpayments had been credited properly. No explanation as to what amounts were credited to what balances. I have continually been met with responses that include that the balances that I see on my statement are not the " real '' balances and that I should not be considering them. However, they neglect to tell me what they really are. As you will see from the statements I have attached ( for some reason the download of the PDFs has left off some information which I will provide ), the crediting has been erratic to say the least and makes no sense what so ever when one considers the law in that all highest balances are to be paid down first for any overpayment made. <P/>The following is my most recent conversation down to the initial contact via secured message online with a Chase representative : On XX/XX/XXXX I sent the following secured message : I want to know what my balance is at the highest APR rate currently which is 19.99 %? I also want to know how to make a payment so that if I pay that amount plus the minimum amount due I will not have any balance outstanding at that high rate of 19.99 %. <P/>Thanks, XXXX XXXX On XX/XX/XXXX I sent the following secured message : As you can see even from the explanation that you gave me below, I still was not credited properly. You state that after the minimum payment is made, any overpayment will go to the largest interest rate balance - " Any payment amount received that is over your minimum payment will be applied to your account beginning with the balances carrying the highest APR, and then to balances with the lowest Annual Percentage Rate ( APR ). '' That did not happen in XX/XX/XXXX with my overpayments of {$1400.00} and {$4000.00}. Regardless of the APR on the balances, the balances should all be declining when the minimum payment is due as it is made up of 1 % of principal and the interest rate charged. So you have not explained how my balance at the highest interest rate increased from {$12000.00} to {$13000.00}. You have also not explained how my overpayments mentioned above got credited. I would please like an explanation as to how my overpayments were credited. <P/>Please review again. <P/>Thanks, XXXX XXXX Hello XXXX XXXX, Thank you for contacting Chase regarding your concerns with your Slate account ending in XXXX. <P/>As a consumer myself, I can certainly understand your position in regards to this matter ; however I found that the payments applied to your account in XX/XX/XXXX were properly applied according to our payment allocations. <P/>When we receive your minimum payment, generally it will be applied to your account beginning with the balances carrying the lowest Annual Percentage Rate ( APR ), and then to the balances with the highest APR. Any payment amount received that is over your minimum payment will be applied to your account beginning with the balances carrying the highest APR, and then to balances with the lowest Annual Percentage Rate ( APR ). <P/>Your payment will first be applied to your statement balance. If your statement balance is paid in full, the remaining amount will then be applied to any current activity. <P/>If you have two balances carrying a promotional APR at the same rate, balances that will expire soonest will be paid first. If you have two balances carrying a promotional APR at the same rate and the same duration, the promotion which was first established on the account will be paid first. <P/>Furthermore, your account has variable APR ( s ) based on the U.S. prime rate, which can change monthly. <P/>Here is what you need to know : - A variable APR can increase or decrease if the U.S. prime rate changes. - A change in the U.S. prime rate can affect your interest charge and minimum payment calculations. <P/>How we calculate your variable APR : - We add the U.S. prime rate to your account margin found in your Cardmember Agreement. - We use the U.S. prime rate published in the Money Rates section of The XXXX XXXX XXXX two business days ( not weekends or federal holidays ) before the closing date of your billing cycle. - If the APR increases, you will pay a higher interest charge and may pay a higher minimum payment. <P/>To find your APR, check your monthly billing statement or login to chase.com. Your Cardmember Agreement explains the full account terms. <P/>I understand that you may be disappointed by the outcome of this previous email response. Please know that nothing would have given us greater pleasure then to have provided you with what you were requesting. I sincerely apologize for the inconvenience this may have caused you. <P/>XXXX, if you have any other questions or concerns, you can call the number below or send us a secure message. We appreciate your business and thank you for choosing Chase. <P/>Thank you, XXXX Chase Email Servicing XXXX Original Message Follows : -- -- -- -- -- -- -- -- -- -- -- -- XXXX I have had numerous conversations with supervisors in the credit card services department that ca n't properly explain my statements. I made two large overpayments in XX/XX/XXXX that were not credited properly to the highest interest rate balance. In addition, it seems that despite making my minimum payments due each month, the balance on the highest interest rate has actually gone up. This can not happen if no additional charges are made and I am making the payments due. <P/>I have continually gotten the response that we have reviewed the account and everything is correct. Well it is not. My balance at 19.49percent on the statement with a payment due XX/XX/XXXX was {$16000.00} with a minimum payment due of {$580.00}. The very next statement I make the minimum payment due plus an additional {$1400.00} {$1900.00} in total however my balance at 19.49percent is still showing that it is {$16000.00} which would n't be the balance with just the minimum payment due as it includes a 1percent payment of principal on each of the balances. The very next statement, I make the minimum payment due of {$550.00} which should be lower as a result of what should have been the pay down on the 19.49percent balance that was n't made plus an additional {$4000.00} or {$4600.00} total. The statement which shows this payment shows my balance at 19.49percent to be {$13000.00} which is not {$16000.00} minus the overpayment of the {$4000.00} or the {$1400.00} from the month before. <P/>The math is incorrect and instead of explaining any of the math, I have continually gotten a response that everything is correct. It is not. In addition to the above, the balance at 19.49percent on the statement which shows a minimum payment due of {$430.00} on XX/XX/XXXX, is {$12000.00}. After continually making the minimum payments due, that balance which is now being charged 19.99percent is at {$13000.00}. There is no way without additional charges being made along with making the minimum payments that this balance could go up. There are errors in both areas. <P/>The most recent representative I spoke with was XXXX in the Credit Card Services Supervisor area and it was very disappointing that she would not answer my questions and would only say that the statements had been checked and that they are correct. They are not correct according to the math.Please have someone correct these as I want to totally pay down my balance at the 19.99percent as it is exorbitant and I do n't want to overpay and pay down the balances which are at 2.99percent or 3.99percent. Please respond as soon as possible as I want to make a payment and should n't have to continually be paying 19.99percent as a result of your unwillingness to correct my account  balances. <P/>Thanks, XXXX XXXX I will attach the statements for my account beginning in XX/XX/XXXX through XX/XX/XXXX which is the most recent statement. The missing information that you will not see on these statements unless you could view them online at Chase is the following : There is a Purchase balance showing at a rate of in addition to the other balances ( please keep in mind that no additional purchases have been made ) you will see and each month they are the following : XX/XX/XXXX : {$830.00} (@19.49 % ) XX/XX/XXXX : {$830.00} (@19.49 % ) XX/XX/XXXX : {$180.00} (@19.49 % ) XX/XX/XXXX : {$3.00} (@19.49 % ) XX/XX/XXXX : {$3.00} (@19.74 % ) XX/XX/XXXX : {$3.00} (@19.74 % ) XX/XX/XXXX : {$3.00} (@19.74 % XX/XX/XXXX : {$3.00} (@19.99 % ) XX/XX/XXXX : {$3.00} (@19.99 % ) XX/XX/XXXX : {$3.00} (@19.99 % ) I have yet to get an explanation as to how my balances at the highest interest rates are increasing despite the fact that I have made no additional purchases and have made my minimum payments as required. <P/>Your assistance in this matter is greatly appreciated! <P/>Thanks, XXXX XXXX

Company response to consumer: Closed with explanation