Consumer complaint received 2021-03-16
Company: CITIBANK, N.A.
State: MD
Product: Credit card or prepaid card
Sub-product: Store credit card
Issue: Advertising and marketing, including promotional offers
Sub-issue: Confusing or misleading advertising about the credit card

Complaint:
I am writing to file a formal complaint against The May Department Stores Company and Citgroup who purchased the May Department Stores Company credit card receivables and services all cardholders for a deceptive business practice of offering deferred interest programs with full knowledge they would block consumers from applying payments towards deferred balances illegally generating deferred interest. 

I am requesting your office investigated this illegal practice and enforce current laws or enact new laws to prevent this type of leading practice targeting minorities and seniors and file a class action lawsuit on behalf of all consumer affected. 

I made ( 2 ) two deferred purchases first on XX/XX/XXXX, in the amount of {$1000.00}, second on XX/XX/XXXX, in the amount of {$500.00}, for a total of {$1500.00}. 

Although I made other purchases during this time period XXXX XX/XX/XXXX XX/XX/XXXX, I paid Macys {$2800.00}, towards my deferred balance who refused to apply said funds as directed and blocked consumers from making selective payments towards deferred balances. 

After I filed a formal complaint Macys then decided to apply two payments in the amount of {$420.00}, towards the deferred balance then charges {$490.00}, in deferred interest after 12 twelve-month period ended {$310.00}, interest for {$1000.00}, purchase and {$180.00}, interest for {$500.00}, purchase and claimed balances were not paid prior to ending period with full knowledge Macys blocked consumers from applying payments towards deferred balances. 


Macys engaged in a deceptive business practices by refusing to disclose how consumers can apply payments towards deferred balances prior to purchase, blocked consumers from applying payments towards deferred balances, falsely claimed deferred interest on the of {$1000.00}, purchase was {$280.00}, but charged {$310.00}, claimed deferred interest on the amount of {$500.00}, purchase was {$110.00}, for 12 months but charged {$180.00} interest for balances that were paid. 

Macys knowingly applied payments towards newer purchases without the consent or knowledge of consumers, sent out complicated statements that did not show or disclosed formulas or rational uses to apply payments towards deferred balances then claimed it was the consumer responsibility to apply said payments. 

In addition, Macys refused to allow me to dispute the interest charges or calculations told the consumer to make additional payments, said consumers do not have the rights to dispute any of their billing or interest charged which is a direct violation of Fair Credit Billing Act. 

I asked Macys to allow me to file a billing dispute under the FCBA, placed disputed amount aside and remove from outstanding balance opposed to being charged more interest on the deferred interest charged in amount of {$490.00}, until issues can be considered reviewed by several government agencies. Macys denied my rights to dispute deferred charges which is a direct violation of FCBA. 

Therefore, I am seeking assistance and ask your office to investigate this deceptive business practice and provide relief in form a class-action lawsuit or enact and enforces laws to prevent companies for using this deceptive lending practice. 

Please find attached an XXXX spreadsheet and Macys invoices showing payments and balances and Macys billing statements for evidence your review please note first payment amount was {$400.00}, almost half the amount charged {$1000.00}.

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