Consumer complaint received 2023-02-24
Company: FIRST NATIONAL BANK OF OMAHA
State: TX
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:
XXXX advertised a 5.99 % balance transfer deal on my XXXX XXXX plus card. Before taking the deal, I called to ask how the interest was calculated on purchases and they told me " just pay the purchases in full plus the minimum in order to avoid any interest on purchases balance. '' Before transferring the balance to my XXXX account, I've been paying my balance in full each month. So when the balance was transferred, I was at a XXXX balance. Each month, the minimum is less than {$100.00}. So I pay the purchases amount listed on page one of the statement and add {$400.00} to that amount. There's no way that I could be behind on purchases. 

Ever since I signed up, each month they charge me an interest charge on " purchases '' despite the fact that I had paid off purchases in full. So, I've called them to dispute the " purchases '' interest charge each month. ( The " balance transfer '' interest is not in dispute. ) In the last several months, the bank representatives agreed with me and credited back the disputed interest. Last month, they said that they didnt think Id have to call again about it. XX/XX/2023 I had to call again as they mis-charged interest on purchases yet again. 

The rep stated that I have to pay the whole balance in full in order to avoid the 18 % interest charge on purchases. I told her that was wrong and asked to escalate the call. The manager came on the line and used some confusing language regarding math and how the payments are applied and said that the purchases amount listed on the statement was not the actual amount that I spent in the billing cycle but that it was an average used to calculate interest. In an effort to cover up the mis-charge, he likely was thinking that like most people I was in the habit of paying the minimum amount plus that purchases amount because that obfuscation would work if it was just {$50.00} or {$100.00} being the difference between this so-called average and the so-called actual purchases amount. When I told him that I was paying {$400.00} over the purchases amount and had been doing that for the entirety of the balance transfer period, and so theres no way that I could be behind. He took a closer look and then changed his story saying, oh, you know what, you do have to pay both balances in full in order to avoid an interest charge on the purchases. He changed his story and then just started lying and being argumentative, just a bunch of liars excuses, a constructed, de-facto reality. 

When I called him out on changing his story, he just denied it and continued with his liars constructed reality. I asked to escalate the call higher than him and he said that it was impossible and that there was no one higher than him. 

I pointed out, " I'm not a lawyer, but if these terms were a part of the deal from the beginning ( which they were not ), that the deal cant be legal. '' If a consumer is told that they would be paying 5.99 % interest on {$2000.00} ( the amount of the balance transfer ), but in reality they are paying 18 % on $ XXXX because they charge about $ XXXX each month on purchases, if this fact were disclosed in the advertising, then no rational person would take this deal. 

They get you to sign up by incentivizing you with the 2x awards on purchases at the XXXX dealership for products and services for your car. Then you start using the card for almost everything so that you can get free stuff, then one day you transfer a balance because 5.99 % is a good deal. The next thing you know, youre getting ripped off.

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 monetary relief