Credit card or prepaid card -- Problem when making payments -- Complaint #6359623
Complaint Overview
Complaint ID: 6359623
Company: Citibank, N.A.
Product: Credit card or prepaid card
Sub-Product: General-purpose credit card or charge card
Issue: Problem when making payments
Sub-Issue: Problem during payment process
State: New Jersey
ZIP Code: 070XX
Date Received: 2022-12-24T12:00:00-05:00
Date Sent to Company: 2022-12-24T12:00:00-05:00
Company Response: Closed with monetary relief
Timely Response: Yes
Consumer Disputed: N/A
Submitted Via: Web
Consumer Narrative
My complaint is ethical in nature. I believe this credit card processor is purposely applying payments in a way that benefits them, and hinders the ability for the borrower to pay down balances. The company is Citibank. I have pointed out this practice with them in the past, yet they continue to apply payments in a way that harms the card holder. Citibank repeatedly sends promotional balance transfer offers and checks. On occasion, I choose to use their 0 % offers to pay for certain things, retain cash, help a friend, etc. in this uncertain time we are living in. As of XX/XX/XXXX, I had 3 such offers on account. They typically are 12 months in duration. Every month I pay minimum balance, usually plus some additional amount, to keep credit good and avoid any fees and high interest, etc. I had one offer that was expiring on XX/XX/XXXX that had a balance of {$1900.00}. I had another that expire in XXXX of XXXX in the amount of {$2300.00}. I have a third that expires in XX/XX/XXXX in the amount of {$8000.00}. I contacted them in late XX/XX/XXXX just prior to paying my expiring balance of {$1900.00} because I noticed that they were applying my minimum monthly payments to my promotional balance that was expiring the furthest in the future, the {$8000.00} balance. This would make the most current promotional balance, the {$1900.00} balance more difficult to pay, and they would then be able to apply all accrued interest, and begin charging 29 % interest on any unpaid promotional balance. This is a terrible practice! I pointed this out to them, and they refuse to make any adjustments to the balances. Furthermore, when reviewing my balance this month, I notice that they did exactly the same thing with my {$1900.00} payment that I made in XX/XX/XXXX. They applied the {$1900.00} payment that I made to my {$2300.00} balance, and began charging me 29 % interest on the {$1900.00} promotional balance that was meant to pay the remaining balance in full by the XX/XX/XXXX promotional expiration date. I am working with them to fix this issue, however, I am certain that they will do the same thing to my other promotional balances, and that they are doing this to many, many other customers. Under Citibanks payment model, it would make it difficult to every pay this balance off with them not charging 29 %, which is their goal, and again, a terrible practice.
Frequently Asked Questions
What is Complaint #6359623 about?
Complaint #6359623 was filed against Citibank, N.A. regarding Credit card or prepaid card specifically about Problem when making payments. It was received by the CFPB on 2022-12-24T12:00:00-05:00.
How did Citibank, N.A. respond to this complaint?
The company responded with: "Closed with monetary relief". The response was timely.
What is the risk level of this complaint?
See the risk assessment section for details on this complaint's risk profile.
How do I file a similar complaint?
You can file a complaint with the CFPB at consumerfinance.gov/complaint. Select the appropriate product category (Credit card or prepaid card) and describe your issue in detail.
Can I see other complaints against Citibank, N.A.?
Yes, visit the Citibank, N.A. company profile at readthecomplaint.com/company/citibank-n-a to see all complaints, risk scores, and analysis.
Disclaimer
This analysis is AI-generated based on publicly available CFPB complaint data. It does not constitute financial or legal advice.