Consumer complaint received 2020-06-01
Company: CITIBANK, N.A.
State: NY
Product: Credit card or prepaid card
Sub-product: Store credit card
Issue: Fees or interest
Sub-issue: Problem with fees

Complaint:
Hello, I have an issue with Credit Protection fees related to my Bloomingdales store card. 

I signed up for the Bloomingdale 's credit card as an active credit line and I was told that an added benefit of having this card was the credit protection - there wasn't a clear disclosure that this would be a month-to-month service. I have a card that provides this service free of charge so the incorrect conclusion was that it would be similar. 

I took a look at my Bloomingdales statement and found a credit protection service with the following : FEES Transaction Date : XX/XX/XXXX Description : CREDIT PRO XXXX Amount : {$17.00} Bloomingdale 's customer service provided a high-level summary of this charge and confirmed they could not cancel the service because it's a separate entity. 

I called the XXXX XXXX ( XXXX ) XXXX number for more information and to cancel. That process required additional effort ... 

1. A voice message appears letting you know about long wait times, I was a bit discouraged but decided to stick to with the call. 

2. The second message lists out options incl. terminating the service ( # 3 ). I was prompted to enter the last 4 numbers on the account. Try it for yourselves, the " system '' doesn't recognize the input. I did this on both landline and cell phones. I kept inputting the numbers and message that I hadn't entered a number. I was finally connected to a representative. 

After introductions, I asked the representative the following questions : 1. What is this service about? Rep said this is credit protection plan in addition it will pay the minimum balance on your bill in case you lose your job ... 

2. What's the website? I'd like to see the benefits. " No, we don't have a website. You may request more information by faxing us at XXXX and please include a cover on your faxed request. Requests take 5-7 business days to process. '' 3. How do consumers know what's included in this service? " We mail the information out one time, so individuals are aware after they sign up. '' 4. Please detail the terms and conditions. " Please send us a fax and we'll be glad to help ''. 

5. Are you affiliated with Bloomingdales? " No, we're not affiliated. We provide the service to the cardholders ''. 

I'm writing to CFPB because the process of obtaining information was arduous. 

1 ) I'm signing up for a PAID SERVICE, that was described to me as a card benefit ( no monthly fee is disclosed ). 

2 ) The initial process of reaching a representative is not easy and I was dissuaded from continuing. I'm sure working folks, who have limited time, may not have cancelled as a result. 

3 ) Getting information is made even more difficult by having to fax ( not email but fax ) in requests of the services ; which undoubtedly will make folks rethink and continuing paying. 

4 ) The {$17.00} becomes part of my Bloomingdales principal balance. If this is your only payment, minimum payment, you get hit with a {$38.00} late fee. If you don't keep tabs on your account, this can accrue rapidly over time - especially with a 25.24 % 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