Consumer complaint received 2016-10-12
Company: TD BANK US HOLDING COMPANY
State: DE
Product: Consumer Loan
Sub-product: Installment loan
Issue: Managing the loan or lease

Complaint:
I have a Private Label credit account with TD for financing of home furniture. There have been XXXX separate purchases on the account - XXXX with no interest for XXXX years, the other occurred XXXX/XXXX/16 for {$630.00} with a 6 month deferred interest plan expiring XXXX/XXXX/16 ( promotional plan XXXX ). Beginning on XXXX/XXXX/16, I increased my minimum monthly payment by {$110.00} to a total of {$320.00} per month in order to cover the {$630.00} charge within the promotional period. 

In or about XX/XX/XXXX, I noticed that per the billing statements supplied, my monthly payment was not being applied to the XXXX purchases as outlined in the terms and conditions included with the statement. Per the agreement : " How Your Payments Are Applied to Your Account Balance : b. Application of Payments in Excess on the Minimum Payment : We will generally apply payments and credits in excess of the Minimum Payment Due in the following order : ( i ) to purchase transactions with the highest Daily Periodic Rates and corresponding APRs ; ( ii ) to purchase transactions with the lowest Daily Periodic Rates and corresponding APRs ; etc.. 

Per the T & C, this would be equivalent to {$200.00} to plan XXXX, {$8.00} to plan XXXX and {$110.00} to plan XXXX. 

I contacted TD and was advised that " that was n't the way it worked '', in which I referenced the T & C. I was advised that they would correct the recent payment only, and that " in order for the payments to be applied correctly, I would need to contact them monthly and ask for they to reapply the payment correctly ''. Apparently, this representative was trained to handle and aware of TD 's inability to apply payments correctly. 

On XX/XX/XXXX, I noticed that following my call to TD, they began to apply the payments according to the T & C 's on the account without my intervention, which was again as follows : {$200.00}, {$8.00}, {$110.00}. However, per the XX/XX/XXXX statement, I was going to be charged accrued interest. Due to TD 's failure to process the payments according to the T & C 's, I was set to receive interest penalties, which should be considered an Unfair, Deceptive And Abusive Practice. 

On XX/XX/XXXX, I contacted TD to advise of the error and to ask for them to correct the situation. After connecting with an agent and explaining the situation, I was hung up on. I called back, explained that I was just hung up on, re-explained the situation, and was promptly disconnected by the agent, again. Each time, purposefully. I called TD back a third time. I promptly asked the agent if they were experiencing any issues with their phones, which I was advised they were not. I explained the prior two calls being intentionally disconnected, and the agent seemed concerned, but not surprised. After explaining yet again the situation and being placed on hold, I was advised that there " was nothing they could do '' and " that 's just the way it is '' and " I do n't make up the rules ''. At that point, I reminded the agent they did make up the rules, that it was their own T & C 's, and I needed to speak with a manager. I reminded the agent that I 'm probably not the only one with this issue, and that would speak to a potential CLASS matter. This accelerated the manager to take the call. After being placed on an extremely long hold while the manager manually added up the payments and how they were incorrectly applied ( only {$580.00} posted XXXX ), I was advised that I was correct. 
XX/XX/XXXX - XXXX -- should be XXXX XX/XX/XXXX - XXXX -- should be XXXX XX/XX/XXXX - XXXX -- should be XXXX XX/XX/XXXX - XXXX -- should be XXXX XX/XX/XXXX - XXXX -- should be XXXX XX/XX/XXXX - XXXX XX/XX/XXXX - XXXX As of the XX/XX/XXXX statement, I paid {$670.00} on the {$630.00} deferred interest plan. The manager advised me to pay an additional {$45.00} to cover the amount that they had not credited to my account correctly, and she would adjust the interest off of my account. I paid the {$45.00}. Interest was not removed.

Company response to consumer: Closed with monetary relief