Consumer complaint received 2023-08-25 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: FL

Complaint narrative:
On XX/XX/XXXX a purchase was made at Best Buy, in the amount of {$2500.00} NO INT W/PYMTS FOR XXXX XXXX. I as that the consumer had made " Auto Payments '' on this account, since it's inception and that each month, a payment method that made payments without requiring action by the consumer. The CitiCorp minimum payments were taken from the consumer 's bank account each month per the agreement of minimum payments due to avoid interest penalty or additional fees. The purpose of Auto Payments, according to CitiCorp, was so that the consumer would not miss a required payment so that the consumer to not be assessed any late fees or penalty for not making a payment on time, per multiple CitiCorp customer service agents. 

It should be noted that each month, the consumer received a text and email of the minimum payment due and that payment being withdrawn from the account. Additionally, the consumer receives between 10 and 25 other emails and texts messages to promote other CitiCorp or BestBuy offers or sales not related to the account in this correspondence. These emails are voluminous and by opting out, or any attempt to block or filter, could prevent bonafide payment notices to the consumer. As related to payments, no interaction is necessary from the consumer for timely interest fee or payments each month with the Auto Payment feature. 

Additionally, the Auto Payment feature screen has only 4 options. On that Auto Payment screen, using the CitiCorp/Best Buy website as an example as attached as an exhibit, the choices for payment options, to date, are as follows : 1. Minimum Payment Due 2. Statement Balance in Full 3. Minimum Statement Due + Extra Amount 4. Extra Amount. 

There is no option for a selection for " Interest Saving Balance '' payment. 

On XX/XX/XXXX, the Federal Reserve rules on Bank Card protection for consumers stated, in part, as follows : Payments directed to highest interest balances first. 
If you made a purchase under a deferred interest plan ( for example, no interest if paid in full by XXXX, XXXX ), the credit card company may let you choose to apply extra amounts to the deferred interest balance before other balances. 

On XX/XX/XXXX the account with a {$2200.00} balance above was charged an additional {$1800.00} in deferred interest for the promotional payment not being Auto Paid by that due date. This increased the new balance to {$4000.00}, which is a 80.01 % increase to the account balance or 45.19 % of the entire balance increase. Additionally, an additional {$540.00} was added to that same balance by the XX/XX/XXXX statement, before the consumer discovered that the XX/XX/XXXX payment was not Auto Paid. That brought the total amount due as a result of the Auto Payment not being made to {$4600.00} on a prior balance of only {$2200.00}, as 200 % increase of the original promotional balance. 

An additional {$450.00} payment would have paid off the entire {$2200.00} in XX/XX/XXXX had that Auto Payment included the entire Promotional Balance, but not that amount due is double.

The entire payment subject to interest has been paid by this consumer upon the rejection of relief from CitiCorp for this bulk interest application.

I want to site a few issues lacking with these payment choices, which have likely been omitted by design, to create additional interest costs to all consumers. There are no selections as to 1. Interest Savings Balance or 2. Ending Promotion Due Balance. 

On XX/XX/XXXX I had a XXXX minute phone call with CitiCorp customer service to address this concern. I was routed to XXXX service reps and escalated to XXXX separate managers. 

The area of concern was that It was my understanding that because the Auto Payment was to save the consumer costs, that the Promotional Balance should have been withdrawn from my account to reduce that interest expense.

The synopsis of the conversations had with CitiCorp was that XXXX. If I called within a few months of the ended promotional period, that they would have reversed the interest charges as a courtesy, as many customers have the same issue. XXXX. That Citicorp could not confirm that any text or emails were sent related to the ending promotional period or that it ended. XXXX. That CitiCorp was not required to notify the consumer that there was an application of a large penalty or interest charge being added to cardholder. XXXX. That is was not CitiCorps responsibility to advise the cardholder that there was action necessary to remedy the large penalty pending, at the sole benefit of CitiCorp as other Credit Providers do. XXXX. That are no way to make a singular end of promotion payment. XXXX. That CitiCorp does not have to give any notices to a cardholder regarding payments.

It is with my aforesaid statement, that I feel this is an actionable issue. It is my intention to attempt to resolve this with CitiCorp and Best Buy. My last inquiry with CitiCorp ended with a response that they do not feel I have been discriminated against, which was not the point of inquiry, and there was no further discussion. 

The above statement is in-part for purpose of submitting this claim, and further discussion shall include additional information, action and rules.

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