- Report: #294627
Complaint Review: Citibank (South Dakota) - Sioux Falls South Dakota
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Citibank (South Dakota)
P.O. Box 6940 Sioux Falls, 57117 South Dakota, U.S.A.
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Citibank (South Dakota) Finance Charges on paid in Full balance before due date Sioux Falls South Dakota
In November, I paid a CitiCard credit card balance in full before the due date. The next month I received a a statement that showed I owed $28 in finance charges. I had a $0 balance and there was no late fees or other balances owed. It seems that CitiCards keep adding interest to your balance after they send out your monthly statement and it keeps adding up until they get your payment. They then add that to the next month's balance. That makes it nearly impossible to carry a $0 balance on their credit cards.
Mike
Farmersville, Texas
U.S.A.
Mike
Farmersville, Texas
U.S.A.
2 Updates & Rebuttals
Mike
Richardson,Texas,
U.S.A.
Residual Finance Charge update
#2Author of original report
Tue, January 15, 2008
I received a letter from Citibank South Dakota that explains the residual Finance Fee very simply. I quote: "Interest continues to be accured from the date the statement is mailed until payment is received". That means anytime a balance is paid in full and on time, there will be interest owed on the original balance for the time between the statement was mailed and the payment was received. There used to be a time that paying by the due date meant no additional interest. Now it means that you'll get hit with a finance fee but not a late fee.
Dman
Jacksonville,Florida,
U.S.A.
Residual Finance charges
#3Consumer Suggestion
Thu, December 27, 2007
Mike, I read you comment about the finance charges. There are a couple reasons why you would see finance charges on a bill paid in full. One reason is that the balance included cash advances which there is no grace period even if it is paid in full. Interest on cash advances start the date it is made until the moment that advance is paid in full. Also you would see finance charges if the prior statement wasnt paid in full,and you paid in full the next month which are known as residual finance charges,let me explain how it works,can be kinda tricky. Let's say that the statement you received in 11/07,gave you a due date in 12/07 and you paid the balance in full on or before due date in 12/07,if you did not pay your balance in full on your statement in 10/07, you will see finance charges on your statement that cycles in 12/07 for the balance that wasn't paid in full in 10/07. Once you paid it in full, the interest stops accumulating. If the latter was the case with Citibank, customer service will waive it for you as a courtesy.
