Consumer complaint received 2018-09-19 00:00:00
Product: Credit card or prepaid card — Store credit card
Issue: Fees or interest — Problem with fees
Company: CITIBANK, N.A.
State: CA

Complaint narrative:
Our complaint relates to predatory lending practices of Home Depot Credit Services, which we understand is administrated by Citibank. We had a Home Depot Credit card ( " Card 1 '' ) which had been paid on time and paid in full. In XX/XX/2018, we purchased paint at the XXXX Home Depot store and were pressured into opening a second Home Depot Credit card ( " Card 2 '' ). At that time, we were told that there was a substantial discount if a second card was opened and, accordingly, we should not use Card 1.

We acknowledge that we paid Card 2 late. However, the XX/XX/2018 statement for Card 2 shows that the balance was paid in full. Because of the late payment we were charged {$16.00} in late fees which were due on XX/XX/2018. 

We use online payment to pay amounts on Card 1. This method provides for the entry of account numbers. Inadvertently, we failed to realize that we need to open a second payee account for online payments due on Card 2. We paid the {$16.00} under the account number for Card 1. Home Depot Credit reports that they processed the payment on XX/XX/2018. 

In XX/XX/2018, we received a second statement on Card 2 which included {$16.00} balance plus an additional {$16.00} in late fees plus {$2.00} in interest. The total balance of {$34.00} was due on XX/XX/2018. We also received an XX/XX/2018 statement on Card 1 showing a credit balance of {$16.00}. We were abroad and then out-of-state when the XX/XX/2018 statement were received. On or about XX/XX/2018 we telephoned Home Depot Credit to discuss the misapplication of the XX/XX/2018 payment. After researching the matter, Home Depot Credit applied the payment to Card 2.  On its XX/XX/2018 statement, Home Depot Credit reported a XX/XX/2018 " Misapplied Pmt SM Prin '' on Card 2. However, we were charged an additional {$34.00} of late fees and {$2.00} of interest. 

On XX/XX/2018 we called Home Depot Credit to resolve the balance of the XX/XX/2018 statement. At that time we were referred to XXXX in the credit adjustment department. After much discussion, we were told that the Citibank 's policies allowed for only one late payment per each account regardless if there was a misapplication of payments between two Home Depot Credit accounts. We were then told to pay an additional {$16.00} in late fees and that the XX/XX/2018 charges of {$38.00} would be waved. We paid the {$16.00} amount and closed Card 2.

Although small in amount, the business practices employed by Home Depot Credit and its agent Citibank are, in our opinion, a clear indication of predatory lending actively which should be stopped by the CFPB to protect other consumers. Moreover, Home Depot should be prohibited from pressuring consumers to open second accounts because the represent a clear conduit to orchestrate predatory lending practice.

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