Consumer complaint received 2025-09-07 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: IL

Complaint narrative:
Since XXXX, I have been an account holder of Citi Advantage credit card ( account ending in XXXX ) which currently have multiple balances at different APRs. Beginning with my XXXX statement ( XX/XX/XXXX ), I closely began monitoring these calculations due to no new purchases being added and making payments exceeding my minimum amount due. This then lead me to research the CARD Act of XXXX and Regulation Z ( 12 CFR 1026.7 ) learning that issuers are required to apply any amount paid above the minimum payment to the balance with the highest APR first. After a couple months of review, I strongly felt that Citi was not allocating my payments correctly so I mailed a certified letter to Citi Cards Attn : Customer Service P.O.Box XXXX XXXX XXXX, SD XXXX dated XX/XX/XXXX requesting for a review of my account based off the following two specific concerns : XXXX. ) Allocation of Payments Over the XXXX XXXX XXXX. ) Unexplained APR increases from XX/XX/XXXX through XX/XX/XXXX which my APR went from a stable 9.99 % to 14.24 %, without any proper warning of these increases. This has lead to my purchases prior to XX/XX/XXXX to be subject to an APR of 14.24 % which has caused more interest to be charged than what I believe should have been. 

Tracking information confirms my letter was received by Citi on XX/XX/XXXX. As of today, XX/XX/XXXX, I have yet to receive any type of response from Citi. I then called Citi customer service in XXXX to request an allocation, which the customer service representative responded " they do not do this. '' The rep then transferred me to another department which they submitted a request for a lower APR for new purchases. I explained to the rep, I did not want a APR reduction as I have not been charging on the account any longer. The rep still submitted and I was denied. Since then I have received multiple letters and emails that are providing me an opportunity to request an increase to my credit limit, which I have not submitted for.

In the recent months, I have been paying a larger amount over my minimum due and have only become more concerned with the way my payment allocation is being done.

I identified significant discrepancies in how my payments were applied : XX/XX/XXXX Allocation discrepancy of {$910.00} XX/XX/XXXX Allocation discrepancy of {$790.00} XX/XX/XXXX Allocation discrepancy of {$1300.00} These examples strongly suggest that excess payments were not being fully applied to the highest-APR balance ( 24.24 % ) as required. Instead, lower APR balances have been reduced significantly and my higher APR balances grew and continue to grow. 

To reiterate, as of today, XX/XX/XXXX, I have not received any correspondence in reference to my inquiries. Therefore, none of my concerns have been addressed, instead they are only sending me invites to request an increase to my revolving credit limit as a way of showing their appreciation for my continued loyalty. 

I prepared a reconciliation using Citis own statement data ( attached as PDF ), which highlights these discrepancies. I used XXXX XXXX as examples, but I am concerned that similar misallocations occurred in earlier months as well. Additional relevant documents are attached as well.

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