Consumer complaint received 2023-10-25
Company: CITIBANK, N.A.
State: WI
Product: Credit card
Sub-product: Store credit card
Issue: Fees or interest
Sub-issue: Problem with fees

Complaint:
I purchased a refrigerator from XXXX XXXX and used their credit card to receive 0 % financing for 12 months and currently have a standing automatic payment each month to pay that promotional balance in full at the end of the 12 months. 

The fridge was purchased in XXXX. 

Then in XXXX, I made XXXX purchases, XX/XX/2023 and XX/XX/2023 totaling just over {$340.00}. To cover these purchases, I scheduled a payment of {$340.00} in XXXX before the due date, in addition to the regular automatic payment for the refrigerator. 

In this last statement, I was charged {$4.00} in interest for charges which I assume are my purchases on XX/XX/2023 and XX/XX/2023. I specifically made an extra payment in XXXX on the XXXX of {$340.00} to cover the aforementioned purchases and now I am being charged interest. 

XXXX XXXX has told me the following : An interest charge adjustment will be credited to your account and will be shown on your next billing statement. 

We are unable to answer questions that are related to merchandise, returns, exchanges, shipping, warranties, etc. Please contact your local store or XXXX XXXX at Voice : XXXX, Hearing and Speech Impaired for TTY : Use XXXX or other Relay Service for further assistance. 

Your statement due date is at least 25 days after the close of each billing cycle. We will not charge you interest on purchases if you pay your XXXX XXXX by the Payment Due Date each month. 

If you fail to pay the New Balance by the Payment Due Date Interest charges will accrue between the Statement Due Date and the date the payment is received in full. There is a {$2.00} minimum interest charge. 

Interest charges are computed for each billing cycle based on your Annual Percentage Rate ( APR ). See your Card Agreement and your billing statement for details. 

Your purchase for {$260.00} was placed on the revolving plan which requires minimum payments each month. Interest charges will be posted to your account each month until the balance is paid in full. 

Thank you for your inquiry regarding payments allocations. The following is an explanation regarding how we allocate payments to your account and how to avoid interest charges on your deferred interest promotion. 

Payments in excess of the Minimum Payment Due are generally applied to higher APR balances first. However, when you have a deferred interest promotion on your account that is expiring within the next two to three billing cycles, we will apply your payment first to the Minimum Payment Due and then to the expiring deferred interest promotional balance before other balances. If the expiration date of a deferred interest promotion is before the payment due date in the billing cycle in which the deferred interest promotion expires, excess payments received before the deferred interest promotion expires are applied to the deferred interest promotional balance first in the last XXXX billing cycles of the promotional period. This may allow you to pay off your deferred interest promotional balance before it expires and help you to avoid interest on the deferred interest promotional balance that might otherwise be billed to your account. 

We currently allow you to reallocate payments in excess of the Minimum Payment Due if you have an active deferred interest promotional balance on your account, provided the payment has already been posted to your account. To request a reallocation of a payment, please contact Customer Service. Their number can be located by selecting the HELP & CONTACT option at the top right of any Account Online screen. 

If you wish to avoid interest charges on a deferred interest promotional balance, the entire outstanding promotional balance must be paid in full by the promotions expiration date. 


After spending an hour on the phone on the website and on the phone with multiple representatives I was told that I needed to make another payment and then call again to have the payment allocated to my revolving balance. 

I am trying to be a responsible consumer and avoid interest - yet XXXX XXXX is making it difficult for me to pay my revolving balance for the sole purpose of collecting interest income.

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