Consumer complaint received 2026-01-28 00:00:00
Product: Credit card — General-purpose credit card or charge card
Issue: Fees or interest — Problem with fees
Company: CITIBANK, N.A.
State: CA

Complaint narrative:
I am submitting this complaint regarding an incorrectly assessed returned payment fee on my Citibank credit card account and Citibanks refusal to correct it after multiple escalations. 

Citibank charged a returned payment ( returned check ) fee even though the payment was received the same day it was submitted. I have documentation confirming same-day receipt of the funds. A payment that is received can not accurately be classified as returned. 

I contacted Citibank through online chat to dispute this fee and provided confirmation that the payment was received. During multiple escalations, Citibank representatives acknowledged that the payment was received but stated that the system showed the first attempt declined, and therefore the fee could not be waived. This explanation is contradictory : a returned payment would mean funds were not received, yet Citibank confirmed receipt of the funds. 

Citibank provided inconsistent explanations throughout the interaction, including : Initially stating the fee could not be waived because the first attempt declined Then stating the fee could not be addressed until the billing statement was generated Instructing me to wait until the fee posted before requesting removal After the fee posted, stating the system would not allow an override and that the fee was valid At no point did Citibank dispute that the payment was received. Instead, Citibank relied solely on an internal system designation rather than the actual transaction outcome. After following all instructions provided by Citibank and waiting for the fee to post, Citibank refused to reverse the charge, stating that the system would not allow it despite acknowledging the payment was received. 

I formally disputed the validity of the fee and requested review by the payments or billing disputes team. Citibank declined to correct the charge and stated that chat interactions do not generate case or reference numbers, leaving screenshots as the only record of the dispute. 

This situation reflects a failure to correct an inaccurate fee after being presented with documentation and repeated escalation attempts. I am attaching screenshots of the full chat conversations and proof of payment showing same-day receipt. Citibank stated that when a payment is submitted, the bank may attempt to process the payment up to three times. If Citibank continues attempting to collect the payment and ultimately receives the funds, assessing a returned payment fee is misleading and unfair. A returned payment fee implies that the payment failed and funds were not received, which did not occur in this case. Charging a return fee while continuing to process and successfully collect the payment creates confusion and results in an inaccurate fee assessment. 

I am requesting CFPB assistance to ensure this fee is corrected and that my account accurately reflects the transaction.

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