Question: I've contacted Citibank as well as my Congress woman and no one seems to be able to answer.... (Citibank said they "are not at liberty to discuss their company policy changes regarding the new law"...) Jist: Citi card, carry 2 balances one at 0% for another 6 months, the other was a recent purchase at the regular rate (DH used wrong card on accident). Statement just cut, with due date of 3/10, next statement cut on 3/16. If I pay the minimum on 2/23, PLUS the higher rate charge balance, will they pay the higher rate off due to the new law, OR can Citi play games and not play by the new law until my next statement? I'm in no rush to pay off 0%, free money as far as I'm concerned. The thought of paying their ridiculous rate on a $2500 purchase irks me... Thoughts? Comments? Suggestions? Thanks!
my best guess is citi won't play by the new rules until your next statement because your current statement closed before feb 22. ridiculous citibank won't tell you how your payment will be applied if made on feb 23. have u called multiple times to try to get a csr who will tell you? what if u paid your minimum plus $1 on feb 23 and then make the $2500 payment if that $1 posts towards your higher interest balance?
Hmmmm...a great question. I can certainly see where cathyG is coming from since your statement closed before the 2/22 deadline. That said, the new law does clearly say the following as of 2/22: "Upon receipt of a payment from a cardholder, the card issuer shall apply amounts in excess of the minimum payment amount first to the card balance bearing the highest rate of interest, and then to each successive balance bearing the next highest rate of interest, until the payment is exhausted." That seems pretty clear to me. Even if your statement closed prior to 2/22, you will still be making a payment after the deadline has passed. I can't say for sure though...cathyG makes a logical argument. Anyway, the whole "we're not at liberty to discuss company policy changes regarding the new law" is bogus. As usual, the answer you get will generally depend on the ability of the CSR you're dealing with. Call again, see if you get someone a little swifter, or demand to speak with a higher-up. Someone there needs to be able to explain how your payment will be applied. That's crazy.
I agree with Joshua. They SHOULD go by the date of payment, it seems. But I'm sure they won't. I'm equally as sure that the law isn't specific enough and it could go to court. I would think that Citi would settle cases before that so as to not set a precedent and have to refund all the money they applied to the lower balance for all cardholders.
Thank you all, great ideas. The only problem with paying $1 more, I won't know how they've allocated it until the next cycle....I know lame. In regards to calling them, I've called three times, once spoke to a "supervisor", same sort of answer each time. I did also click the "contact us" button on their website via my account, and got the "we are not a liberty..." BS response. Thanks again, I'm thinking I may be better off to wait until the next cycle. I'd hate to spend the money and not have it put towards the higher rate. Better to pay the $40-60 in interest (if it would even be that). Thanks again!
