Consumer complaint received 2024-10-31 00:00:00
Product: Credit card — General-purpose credit card or charge card
Issue: Other features, terms, or problems — Problem with balance transfer
Company: CITIBANK, N.A.
State: MI

Complaint narrative:
SUMMARY : Citibank willfully violates 1026.53 because Citibank requires the consumer to be " obligated to pay interest that accrues on the balance [ whether or not ] the balance is paid in full prior to the expiration of a specified period of time '' because they use the excuse of the balance transfer being an " open balance '' to charge 19.99 % on all other purchases. The only way to get out of this trap is to pay the balance transfer off in full. This procedural trap by Citibank, simply put, requires you to pay the balance transfer early to avoid 19.99 % interest, gutting the protections of 1026.53. 

XXXX. On XXXX XXXX XXXX, I consented to {$7500.00} balance transfer between Citibank and XXXX XXXX. Citibank successfully moved the funds. XXXX XXXX successfully received the funds. 
XXXX. I paid an upfront {$370.00} ( 5 % ) fee. The 0 % APR promotional period expires on XXXX XX/XX/XXXX. 
XXXX. Within the statement period, there were an additional ~ {$1100.00} of purchases per the usual revolving terms, which is a 19.99 % APR unless paid in full within the statement period. 
XXXX. Before this statement period, the account had a XXXX balance as the account is usually paid in full. 
XXXX. I received next month 's statement and the only payment information included was the full statement balance and the minimum payment. I contacted Citibank and asked what is the amount I need to pay to avoid interest but still take advantage of the promotional period. 
XXXX. Citibank explained to me that the entire balance needed to be paid in full to avoid interest. 
XXXX. I explained that I was confused and asked Citibank to explain how I was not able to take advantage of my promotional rate. 
XXXX. Citibank explained that they were not charging me interest on the balance transfer portion but because the balance transfer meant that the account carried a balance every month, they were now permitted to charge me interest at 19.99 %. 
XXXX. Citibank explained the only remedy to avoid interest is to pay the balance in full including the promotional balance transfer. 
XXXX. Citibank is willfully in violation of 1026.53 Allocation of payments as they prevent the customer from allocating payments to the higher percentage rate purchases. 
XXXX. In addition, Citibank is willfully in violation of 1026.53 ( b ) ( 1 ) because through subterfuge and disclosures designed to confuse Citibank actually requires the consumer to be " obligated to pay interest that accrues on the balance [ whether or not ] the balance is paid in full prior to the expiration of a specified period of time '' because they use the excuse of the balance transfer being an open balance to charge 19.99 % on all other purchases. 
XXXX. The only way to get out of this trap is to pay the balance transfer off in full. 
XXXX. I spoke with Citibank on XXXX XXXX XXXX. Both parties recorded the conversation. 
XXXX. I spoke with XXXX in Arizona ( Employee number XXXX ) and he was not nice and less than helpful. 
XXXX. I called back and spoke with XXXX ( XXXX number XXXX ) and she was very nice and tried to be helpful. She suggested I file a complaint with the CEO and gave me a Corporate Complaint address. 
XXXX. XXXX was an escalation supervisor and she explained that Citibank had received a lot of complaints about the program. 
XXXX. I've been a customer of Citibank for 21 years.

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