Report: #1006769

Complaint Review: Citibank

  • Submitted: Thu, January 31, 2013
  • Updated: Thu, January 31, 2013
  • Reported By: RJ — San Jose California United States of America
  • Citibank
    PO Box 6283 Sioux Falls, SD 57117
    United States of America

Citibank Sears Card, Sears CitiBank, Citi/Sears Credit Card Sears ChargePlus; Charging interest on paid off Amount! Internet

*Consumer Comment: This procedure is stated in credit card companies terms and conditions...

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I bought some appliances under a 1 year NO Interest promotion in Dec 2011. I called Citi/ Sears and asked them to set up an automatic payment every month to ensure that the promotional balance is paid off. In fact, I set the monthly amount to be such that it actually overpays my account before the end of promotion!

During this time, I made a couple of more p purchases at the Sears store. However, it seems like the payments made towards promotion purchase were partially applied to the items not brought under promotion. This error made it look like I had not paid my promotional balance in full and Citibank charged me an interest of $ 336.21 at the end of promotion period.

I am not able to understand as to why the monthly automatic payment meant to pay off my promotional balance were not applied to the promotional amount . I am willing to pay any interest on unpaid balance for non-promotional purchases. However, charging an interest on the entire amount (Promotional + Non promotional Balance) is unfair practice. Please see the attached note from Sears card site under FAQs -  How do I avoid interest charges on my deferred interest promotion? If you wish to avoid interest charges on a deferred interest promotional balance, the entire outstanding promotional balance must be paid in full by the promotion's expiration date.)

I not only paid the entire promotional balance off; I actually overpaid it! At this point, I will like to request that Citi charge me the interest ONLY on items not covered under promotion and credit any excess interest charged on the entire amount (promotion + non promotion). I had contacted their Customer Service Reps . However, their rudeAccount Reps were unwilling to listen to my issues.

I am left with no option but to start legal proceeding against Citibank for unfair practices.
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#1 Consumer Comment

This procedure is stated in credit card companies terms and conditions...


They can elect to apply payments to low/no interest amounts first.

Read your agreement, it's perfectly legal (and hugely beneficial to them).

Good luck with that lawsuit, let us know how it works out for you. What could possibly go wrong?

BTW, most credit card companies apply payments in this manner. You HAVE to read the fine print.

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