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"cascading" late fees ?

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dfwsteph

Junior Member
What is the name of your state? Texas

In June I made my usual payment to Sears who evidently has become associated with Citibank at some point. I recieved a letter dated 6-13-06 with portions of my check and the payment stub saying the payment had been destroyed in the mail (so they say), would I submit another payment to a specified address - and I did.

My statement for July did not reflect this second check and added a late charge. The fine print on the back of the statement says "You do not have to pay any amount in question while we are investigating...". So I deducted the payment I had made for June and the erroneous late fee. I sent a written dispute explaining and including copies of what happened with the June payment.

In August I had an amount "past due" and another "late fee". Same this month except finally they have credited the disputed fee from June. During all this and by no fault of mine, I've accumulated a delinquent amount (late fees not paid) and the latest late fee ! And they've begun inundating me with phone messages like I'm bad debt !

I can get no satisfaction on the phone. Tried the front-line then the supervisor, according to her, this practice was put into law by congress and took effect the first of this year ??
I heard something about increasing the minimum payments but isn't she lying to me ??

And, the only option is for me to pay the entire amount they say is due immediately and then they will see what they can do about "the" (only 1?) late fee - what in 6 weeks ? who's been getting the interest meanwhile ?

This smells like a Citibank tactic to me - they're already raping me with interest on that card. What can I do about this ? It's really not all that much money and I'm just a fat old single granma lady but I ain't stupid and I'm so mad I'm in tears.

thank you and have a nice day:mad:What is the name of your state?
 


Debt Guy

Senior Member
Citibank purchased the Sears card portfolio a couple of years ago.

Neither are well known for the quality of their customer service.

Technically, they are not responsible for payments that get mangled in the mail. It is your responsibility to get the payment to them on time and in good form.

You can send a written dispute of the balance. Stay off the phone. Send the letter certified mail and address the letter to the Compliance Manager (that way it might actually be seen by someone other than a minimum wage clerk). Explain that you have been a good long-time customer, etc. Ask for a good will adjustment of the late fee and interest charge since this was not your fault and you have been such a wonderful customer.

In case they ignore you or refuse, all you can do is pay off the damn thing and don't do business with them any more. They are a corrupt organization anyway and you will be happier without them.

You really don't have a good legal position here.
 
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ecmst12

Senior Member
I am trying furiously to pay off my Sears card, they really suck. The interest rate is through the roof and even sneakier, if you pay more then the minimum one month, they tell you that a payment is not required the following month, allowing them to charge you more interest and encourage you not to pay off the card. Grrr.
 

moburkes

Senior Member
ecmst12 said:
I am trying furiously to pay off my Sears card, they really suck. The interest rate is through the roof and even sneakier, if you pay more then the minimum one month, they tell you that a payment is not required the following month, allowing them to charge you more interest and encourage you not to pay off the card. Grrr.
However, you are smart enough NOT to fall for that ploy, right?
 

ecmst12

Senior Member
NOW I am, but I still think it's sneaky. I paid the minimum on a Best Buy card for about 2 years when I was in college before I looked at the statement and realized why my balance wasn't going down. I thought the new minimum payment laws were supposed to stop this kind of sneaky business practice.
 

moburkes

Senior Member
ecmst12 said:
NOW I am, but I still think it's sneaky. I paid the minimum on a Best Buy card for about 2 years when I was in college before I looked at the statement and realized why my balance wasn't going down. I thought the new minimum payment laws were supposed to stop this kind of sneaky business practice.
I agree that its sneaky. I used to be able to skip the December payment as a "gift". NOT!
 

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