Consumer complaint received 2016-10-15
Company: CITIBANK, N.A.
State: FL
Product: Credit card
Issue: APR or interest rate

Complaint:
CITIBANK CREDIT CARD FAILED TO FOLLOW SERVICEMEMBER CIVIL RELIEF ACT 50 U.S.C. CH50 3937. Maximum rate of interest on debts incurred before military service ( a ) Interest rate limitation ( 1 ) Limitation to 6 percent An obligation or liability bearing interest at a rate in excess of 6 percent per year that is incurred by a servicemember, or the servicemember and the servicemember 's spouse jointly, before the servicemember enters military service shall not bear interest at a rate in excess of 6 percent -- ( A ) during the period of military service and one year thereafter, in the case of an obligation or liability consisting of a mortgage, trust deed, or other security in the nature of a mortgage ; or ( B ) during the period of military service, in the case of any other obligation or liability. 
( 2 ) Forgiveness of interest in excess of 6 percent Interest at a rate in excess of 6 percent per year that would otherwise be incurred but for the prohibition in paragraph ( 1 ) is forgiven. 
( 3 ) Prevention of acceleration of principal The amount of any periodic payment due from a servicemember under the terms of the instrument that created an obligation or liability covered by this section shall be reduced by the amount of the interest forgiven under paragraph ( 2 ) that is allocable to the period for which such payment is made. 
( b ) Implementation of limitation ( 1 ) Written notice to creditor In order for an obligation or liability of a servicemember to be subject to the interest rate limitation in subsection ( a ), the servicemember shall provide to the creditor written notice and a copy of the military orders calling the servicemember to military service and any orders further extending military service, not later than 180 days after the date of the servicemember 's termination or release from military service. 
( 2 ) Limitation effective as of date of order to active duty Upon receipt of written notice and a copy of orders calling a servicemember to military service, the creditor shall treat the debt in accordance with subsection ( a ), effective as of the date on which the servicemember is called to military service. 
( c ) Creditor protection A court may grant a creditor relief from the limitations of this section if, in the opinion of the court, the ability of the servicemember to pay interest upon the obligation or liability at a rate in excess of 6 percent per year is not materially affected by reason of the servicemember 's military service. 
( d ) Definitions In this section : ( 1 ) Interest The term " interest '' includes service charges, renewal charges, fees, or any other charges ( except bona fide insurance ) with respect to an obligation or liability. 
( 2 ) Obligation or liability The term " obligation or liability '' includes an obligation or liability consisting of a mortgage, trust deed, or other security in the nature of a mortgage. 
( e ) Penalty Whoever knowingly violates subsection ( a ) shall be fined as provided in title 18, imprisoned for not more than one year, or both.

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