Consumer complaint received 2024-10-30 00:00:00
Product: Credit card — General-purpose credit card or charge card
Issue: Fees or interest — Charged too much interest
Company: CITIBANK, N.A.
State: WV

Complaint narrative:
I have a Citibank card. It admittedly has a high balance. I got a cash advance well over a year ago, maybe longer.

I applied for a lower interest or other program but was denied. I always pay more than the minimum payment, and I make the payment before the due date because I read that doing so avoids assessment of additional fees. Nonetheless, after I make the payment before the deadline, I'm immediately charged additional interest and fees for the card and for cash advances. For example, I made the early payment last week before the due date, which reduced my available balance to about {$290.00} However, my available balance today is {$180.00}. Here is the recent activity, to give you context : Payment on XX/XX/XXXX ( before due date ) : {$220.00} This was above the minimum due of {$150.00} Payment due date : XX/XX/XXXX Last statement balance : {$4500.00} Purchases : XXXX ( I have not made purchases in several months, if you need that info ) Cash advances : XXXX Fees : XXXX Interest charged to purchases : {$84.00} Interest charged to XXXX XXXX XX/XX/XXXX : {$27.00} ( I don't know what this is ) Total interest charged in XXXX is {$1000.00} The interest rate is 26.24 % on XXXX XXXX The interest rate on standard purchases and advances is 29.99 % I have not made any purchases since XX/XX/XXXX. 

I

chatted with a customer rep. I was told to avoid the additional interest charges and fees I have to make two consecutive payments to pay the balance in full. I'm not able to do that. The high rate of the interest and fees which are always added IMMEDIATELY after I make the early payment make it impossible to pay down the principal. I chatted with customer support " XXXX '' and the rep told me this : " This interest charge was billed as a remaining interest charge. This was billed as previous statement balances were not paid in full on or before the due date.

When the statement balance is not paid in full or a payment is late interest bills that month based on the average daily balance for that billing cycle. Then the following billing cycle the remaining interest charge is billed ; which is interest accrued from the time period the last statement cycled until we received complete payment in full again. To avoid future interest charges, we need to receive two consecutive payments for the statement balance in full. Once any residual interest has been paid, no further interest will be charged.

As you were not paying the statement balance in full I request you to make the payments for 2 consecutive statements I request you to make the payment of the last statement balance and current statement balance in full I request you to make the payment {$4300.00} therefore you wont be charged any interest further on your remaining balance '' I told her this was confusing with her earlier request that I make " two consecutive payments, '' and got this response : " I requested you to make the payment for the current statement which is your current balance. '' When I reminded her she previously spoke of " two consecutive payments, '' she just responded, " You need to pay the amount in full. '' She never explained what she meant when she earlier said " two consecutive payments. '' She ultimately said, " Consecutive payments for interest charges on a credit card can refer to the interest that builds up on an unpaid balance over multiple billing cycles. '' She never suggested an amount to avoid or lower the fees or what amount to pay, other than repeated requests to pay the balance to avoid further charges, which I obviously understand how credit cards work.

She did not explain why I had to make " two consecutive payments. '' I told her I have not made new charges and am trying to pay it off. I don't want to cancel the card because that affects my credit score. I'm trying to do the right thing. But the interest and fees charged AFTER I make the early payment and after other interest and fees are assessed is eating most of the payments.

I asked to receive a transcript of the chat. XXXX told me there is a " plus '' sign on the side of the chat window. There was no such sign. She told me I could " take a screenshot of the conversation. '' So I did that, if you need it.

I was referred to a team for a hardship program. I had called that program before but was denied eligibility. But will call again.

To recap : I'm making the payments before the due date, which I've read helps avoid significantly more interest and fees. I realize fees and interest continue to be assessed. I'm doing this with other credit cards, and my payments are significantly reducing my balance. Citibank is the only card where I have this problem.

I'm further concerned that my interaction with customer service will " flag '' my account and subject it to cancellation. I'm trying to do the right thing and pay the card off. I don't want to cancel it, and I don't want it cancelled, because that affects my credit score. But the high fees and interest assessed even after I make early payments are preventing that.

I'm also concerned that making this report to you will " flag '' my account for cancellation by Citibank. I hope you have protections in place in case they take retributive action like this.

I am an educated person. I realize I got myself in this situation by running up the credit card debt with a high APR. However, the interest and fees which are tagged on AFTER I make more than the minimum payment are significantly impacting my effort to pay the card off. Ironically, the card statement shows if I make a certain amount of payment I can pay the card off in three years. However, that math is not correct if the interest and fees are added, so the statement is misleading, at best.

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