Citibank Credit Card Almost forces late payment to collect $35 fees Citi Cards ripoff Hackensack, New Jersey Nationwide

I always make online payments on the 15th which wasn't a problem until July when they arbitrarily changed the closing date to the beginning of the month without further notice. I've contacted the company in July to cancel the Credit Monitor and to have the payment date re-synched again. A reply mail was received stating the Credit monitor Membership was cancelled and that the payment date was changed.

Guess what?

Because I trusted the company and didn't look at the August and September statements, they came in with the Credit membership charges and $39 dollars late payment fees when I still have 7 days before the payment was due. My 2.99% offer was taken away as well which make me believe they are doing that on purpose to get rid of low interest rates to make more money.

You're operating under a couple of misconceptions here:

1) It is not necessary to pay your account in full to elimate late fees. Just be sure the minimum payment is received prior to the due date. Should your minimum or full payment be received after the due date, naturally you'll be assigned a late fee.

2) Grace periods have no set time and are not lengthened or shortened. The 'grace period' is from the date you charge something on your account to the monthly close date of your account. If the close date on your account is the 22nd of the month and you make a charge on the 21st, that amount is included and is due with your next statement. However, if the close date is the 22nd and you make a charge on the 24th, that amount is not due until the *Following* statement. The date of your charge to your due date is considered the 'grace period.'

On many occasions I've delayed making a purchase so it will be paid for at a later date. Of course, sometimes it's unavoidable.

If you're the 'wise consumer' you claim to be, I'm sure you read those little 3x5 notices which sometime accompany your statement? They're usually titled 'Changes to Your Agreement' or some sort of legalese. Most people simply discard them and are dismayed when the interest on an account carrying a balance jumps from 11% to 13% and then find them to be a rip-off when they're assigned.

I don't agree with your original complaint, although I agree credit card companies charge very high interest rates--which are perfectly legal.

I wrote the original complaint discussed here. First of all, Citibank has the best card on the market--5% rebate on gas, drugstores and supermarkets + 1% on everything else. Nobody beats that (please tell me if you find a better card). If you have a card that does less, you are cheating yourself.
Next--I always pay in full every month to avoid $39 late fees (outrageous) and their 13% or so interest rate.
I do my part as a wise consumer. I'm complaining about THEIR PART--high late fees, raising interest if you are late on ANY bill (other cards, electric, phone, etc),grace periods shortened from 25 to 20 days, as well as late mailings that shorten your time to pay.
It is in our own self defense that we become aware of their machinations to squeeze more money from the unaware.

Rich,

I'm not sure if you're even reading this post anymore given the time that has passed since your last message, but I think you need to take some responsibilty for your credit situation.

If you have time to post here on the Ripoffreport, you should have time to look up your CitiBank account online and plan your next payment cycle accordingly. This may include curtailing purchases you wish to make, but that is what is sometimes necessary to be a responsible consumer.

If you have enough time to post rebuttals here to your original post, you should also have time to develop a solid monthly budget, which includes keeping track of credit purchases made.

I am no advocate of the credit card companies, not by a long shot. I believe their actions contribute to many of their own woes, including assigning unrealistic credit limits, changing terms without cause and promoting unwise credit choices.

However, that does not abdicate the consumer from their own responsiblity. A credit card is not a license to spend without careful consideration.

You mean to say you had a difference of 11 days between your due date (which you said was the 13th) and your closing date of the 24th? That makes no sense whatsoever. For the record just because your statement closes on a certain date, that does not mean the statement is printed that same day. I used to work for a credit card company and the statements usually print the next day or the day after. Then they go out. It is not unreasonable to expect that your statement doesn't leave their facility for about 2-3 days. Most credit card companies offer about 5 different cycle dates for cards like Mastercard and Visa. So think of all the statements that are printing around the same 5 dates each month. If you know you have a shorter billing cycle, plan to have your money available when you know it is due.

Most CC companies now have an online bill pay option through their website. This way, you will get your statement through your email, and then you can pay the amount directly through your checking account. It is basically instant, and makes payment much easier, and saves paper, stamps, and nasty envelope glue tongue flavor!

If you can't do that, I recommend doing what the person above suggested, which is to call and ask for a later payment due date, which most CC companies are now giving you the option of doing.

I looked for diferent companies on-line to start my credit history with, and in my opinion Citibank is the most reliable! I never had problems mailing the payment, but recently I signed up for paying my credit card on-line. Guess what - the payment is posted the next business day!!! So, please, don't accuse such a trustfull company as Citibank, just be more responsible with money!

Save the monthly payment out of the paycheck that you receive *before* your payment is due. That way when you receive the statement in the mail, the money is in your account and could be mailed out the next day. Most people's minimum amount due does not change from month to month (unless you're spending wildly, which you shouldn't do if you're living paycheck to paycheck as it appears you are doing.

A fair solution is within the control of the card companies. Why can't they:

1. mail out bills the DAY AFTER the billing period closes instead of a week later? This would give you an extra 7 days to pay.

2. make the payment due date CLOSER to the day the next billing period ends? (instead of 10 days sooner) This would add another week or so to the time you have to pay.

Of course, this would reduce the number of $35 late fees and the resulting hikes in their usurious interest rates.

Will Congress get involved to help? Not likely as we just saw how the Bush administration catered to the credit card companies with the new laws that exclude credit card debt from bankruptcy proceedings.

it sounds like your account has a "shortened due date" - for some reason, the computer sends statements with a closer due date than usual. you can call customer service and tell them to change it so you have more time.

also, you can select any due date you want so you always know when it's due and can budget your paychecks, or pay online for free to have the payment post faster.

and if you get a late fee anyway, call and ask for a credit, even if your only reason is a courtesy credit - they're supposed to give them to you if you ask, i think it was up to two a year.