I have a running dispute with Target National Bank-Credit services on their Target red cards. They do not post the online payments in a timely manner and even if the account is paid in full, they take an auto payment generating a credit balance on the next month. They ignore the statement cut off dates and payment due dates taking auto payments outside of this cycle. I have sent 5 letters and only one was answered and incorrectly at that. That person promptly went on vacation and no one else can review this (really?).
Reviewing my July 2011 statement:
Closing date of 7/28/11 Payment due date 8/25/11
Purchases of $36.58
Paid in full 36.58 on 8/11/11 14 days prior to payment due
On 8/29 an auto payment was taken from my checking account, 4 days after the payment due date.
The explanation I was given stated that I had made 2 purchases: 8/8 for 23.69 and 8/15 for 22.21. These purchases were made after the statement cut off for July and would be part of the August billing.
I paid in full for these 2 purchases on 9/2 prior to receiving the August Statement.
This payment was scheduled online 8/22 and was clearly visible as being taken on 9/2 prior to the next payment due date of 9/25/11.
Reviewing my August 2011 statement:
Closing date 8/28/11 Payment due date 9/25/11
Previous balance 36.58
Payments 61.59 (my payment of 36.38 + 25 auto pay)
Month begins with a credit balance of 25.00
Per Jansa (supervisor I spoke with on phone 9/26/11) Target would never take more than the balance due. They did and I had a credit balance.
I made 2 purchases on 8/26 84.47 and 48.49 for a total of 132.96.
I made an online payment of 107.96 on 9/20 5 days prior to the payment due date The online system would not let me do 132.96 as there was the credit balance of $25.00. (107.96+25.00=132.96) which I was not aware of at the time.
This payment has not been posted to my Target statement even though it was made early. Target has also taken another 22.21 auto payment on 9/25. Now I have a another credit balance of 22.21 and have not used the card again.
Special note regarding the autopay: i set this up because I travel and because Target would send out statements so late, they would arrive ON the payment due date making it impossible to send back payments without interest or late fees (I had to go to the store). This is suspicious and appears they are willfully trying to get interest and late fees.
In the current situation: since my payment was made early: why wasnt this credited prior to another autopayment? Target posts purchases the day they are made and will take autopayments to cover themwhy not the payments?
Simple: Because they are ripping off consumers.