Consumer complaint received 2026-04-21 00:00:00
Product: Credit card — General-purpose credit card or charge card
Issue: Problem when making payments — Problem during payment process
Company: CITIBANK, N.A.
State: WA

Complaint narrative:
This complaint supersedes CFPB Complaint XXXX XXXXXXXX, which was withdrawn to allow filing of a consolidated complaint reflecting significant new evidence and additional harms discovered after the original filing. BACKGROUND : In XXXX XXXX, my wife and I obtained a second mortgage to consolidate credit card debt. XXXX XXXX XXXX served as the escrow company for the loan. Payoff checks were issued through escrow to all creditors, including separate checks for my Citibank XXXX XXXX and my wife 's Citibank XXXX XXXX. Both cards share the same household address and last name. XXXX XXXX XXXX confirmed in writing that the {$2200.00} payoff check for my account was deposited by Citibank on XX/XX/XXXX. DISPUTE HISTORY : On approximately XX/XX/XXXX, after noticing the balance had not cleared, I called Citibank and opened a dispute. I provided the check number, amount, and deposit date. I specifically asked whether the check could have been misapplied to my wife 's account given the shared address and last name. I was told no. Citibank applied a temporary credit and stated they would email me if additional information was needed. I monitored my Citibank account and email throughout XXXX. No communication was received. I assumed the matter was resolved. On approximately XX/XX/XXXX, I received an email stating a minimum payment was due. Upon logging in, I found the full {$2200.00} balance showing as owed. When I called, Citibank informed me they had mailed ( not emailed, as committed ) a letter requesting a copy of the check, and because I did not respond to a letter I never received in a timeframe I was never informed of, they closed the case. I had the case reopened on XX/XX/XXXX and submitted a copy of the canceled check provided by XXXX. NEW EVIDENCE : I have since obtained my wife 's XX/XX/XXXX Citibank XXXX XXXX statement ( billing period XXXX ). The statement definitively shows the {$2200.00} payoff check intended for my account was posted to her account on XX/XX/XXXX, reflected as " XX/XX/XXXX PAYMENT THANK YOU - {$2200.00}. '' This is the same check Citibank representatives told me, across multiple calls in XXXX, XXXX, and XX/XX/XXXX, was not on her account. Citibank held the funds on a related account at the same bank, same household, same address, same last name, for nearly XXXX months. The online dashboard for my wife 's account, when filtered to " Since XX/XX/XXXX, '' displays a transaction labeled " XX/XX/XXXX - REVERSE PYMT POSTED IN ERROR XXXX '' in the amount of + {$2200.00}. This reversal was posted only after I filed my original CFPB complaint. The {$2200.00} has since been correctly applied to my account. HARMS CAUSED : ( 1 ) Credit reporting damage : My FICO score dropped 20 points due to Citibank reporting my account as maxed out during the misapplication period, during active vehicle financing. ( 2 ) Interest charges on a balance Citibank was holding the funds for : Throughout the three-month period Citibank held the {$2200.00} on my wife 's account, I was charged interest on that same {$2200.00} balance on my account. Had Citibank applied the funds correctly, my account would have had a XXXX balance. Under the Fair Credit Billing Act, interest should not be assessed on disputed amounts during an active billing error investigation, and my dispute was open from late XXXX forward. ( 3 ) Reliance damage on my wife 's account : Because the XXXX statement reflected a credit balance of - {$1100.00} on my wife 's account ( a balance that only existed because of the misapplied {$2200.00} ), we reasonably relied on that credit balance in managing household finances. My wife used her card for purchases against what the statement showed as available credit. Citibank 's reversal has now converted those good-faith purchases into {$2200.00} of new debt on her account. ( 4 ) Time cost : I have spent well over 10 hours across phone calls, emails, document gathering, and dispute filings resolving an error Citibank 's own systems could have caught in minutes. ( 5 ) Process failure : Citibank committed to emailing me if additional information was needed, then mailed a letter instead, closed my case without notification, and only acted on the misapplication after I filed with the CFPB. The search required to locate the payment - a query by amount, date, and household identifiers- could have been completed in minutes. I provided the check number, amount, and deposit date as early as XX/XX/XXXX and specifically asked Citibank to check my wife 's account. The misapplication was only identified and reversed after regulatory pressure was applied, suggesting no meaningful investigation occurred until the CFPB was involved.

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