This is a specific question, but I wanted to see if any others had dealt with it. My credit card is with Citi. I recently received a statement with a balance owed of (for ease of calculation) $1000. After the statement was issued, I returned some items that I paid for in the prior cycle, and let's say those refunds totaled $500. All the refunds have posted to my account online as "current activity".
I then contacted Citi to confirm that I could just pay $500 by the payment date because that is all that's really still owed on that prior statement, and was told I have to pay the full balance of $1000 because the refunds have not technically posted until my next statement is issued. My "current balance" showing online also takes the refunds into account and is almost less than what was owed on the prior statement given how much stuff I had returned. The rep said even if the current balance was less, I still had to pay the full prior amount. What?!
I have run into this same issue with my Gap card after returning clothes and I always pay what is due AFTER refunds, and have never had an issue with late fees, interest, etc.
Anyone run into this? Is this a Citi policy or a general credit card policy?
Post by illgetthere on Feb 8, 2016 11:00:07 GMT -5
My bank says I can't pay more than my actual balance, so it wouldn't make sense to have to pay the returned amount. I'd call back and see what a different rep says. I don't have personal experience with that though.
My bank says I can't pay more than my actual balance, so it wouldn't make sense to have to pay the returned amount. I'd call back and see what a different rep says. I don't have personal experience with that though.
This is what I said - I don't technically owe the amount anymore, so they are making me pay for charges no longer owed just to then refund me once the next statement issues. I may call back if I have time, I can pay the full amount and just have a really low amount to pay next month, mostly it just bothered me. The person kept repeating whatever is in the manual, something like "you must pay the amount due on the statement or you will owe interest and penalties."
Post by compassrose on Feb 8, 2016 11:15:55 GMT -5
My understanding is that the rep is right. You pay the $1000 now and when everything gets settled, the 'extra' will apply to this current month, so next month you will owe that much less. I have Capital One, though, so it may be different.
Can you do the online chat with Citi? I tend to have good luck with technical questions like that and chatting. I had question sort of the opposite of what you are asking. I had pending charges that I wanted to pay but couldn't until they cleared my account.
I have Capital One and have never paid more than the balance (meaning, I wouldn't pay what I had been refunded).
That said, I don't actually return things that often so returns have never been a big chunk of my bill, and you may want advice from someone more experienced.
My bank says I can't pay more than my actual balance, so it wouldn't make sense to have to pay the returned amount. I'd call back and see what a different rep says. I don't have personal experience with that though.
This is what I said - I don't technically owe the amount anymore, so they are making me pay for charges no longer owed just to then refund me once the next statement issues. I may call back if I have time, I can pay the full amount and just have a really low amount to pay next month, mostly it just bothered me. The person kept repeating whatever is in the manual, something like "you must pay the amount due on the statement or you will owe interest and penalties."
My card lumps refunds in with "payments and other credits". If the refunds posted before the due date, it would make sense to just owe the difference and still have it as you "paid" the statement balance. Sometimes reps just aren't critical thinkers. I always call back when what they are saying doesn't add up and usually end up with a reasonable answer.
Can you do the online chat with Citi? I tend to have good luck with technical questions like that and chatting. I had question sort of the opposite of what you are asking. I had pending charges that I wanted to pay but couldn't until they cleared my account.
Actually I chatted the first time, and thought maybe calling would be better to be able to explain the situation!
Whenever I pay off my bill, I can pay only up to the "current balance" listed. I do everything online though so I've never actually received a CC bill in the mail.
Post by bostonmichelle on Feb 8, 2016 12:17:10 GMT -5
I'm not even sure that Citi will let you do that. I've tried to pay more to pay off a few pending charges and it usually won't let me since it would create a credit.
I have an old citi card, and when I use online payment through their website, I can't pay more than the current balance shows. That has been the case even when a refund brings me below the last statement balance. I would be really surprised if the website will allow you to pay all 1k when it shows a balance of 500.
Did you spend any money since that statement was made?
If no, then yes just pay $500.
If you DID spend more money on the card, then yes you have to pay the $1000, and the $500 in returns goes towards the most recent transactions you made
That's interesting. On my Discover card, if I make a return after my statement closes, and the amount of return is more than the minimum payment that was due, it updates my minimum due as $0. I would definitely call and speak to somebody else.
Did you spend any money since that statement was made?
If no, then yes just pay $500.
If you DID spend more money on the card, then yes you have to pay the $1000, and the $500 in returns goes towards the most recent transactions you made
Yes - I did. I have spent enough this cycle that it would work out and I won't actually be owed a cash refund - I just won't owe that much after my next statement is issued.
If I hadn't spent anything or less than what I will owe, then I would have a real issue with paying more than I technically owe as who knows how quickly they get around to issuing refunds.
When I dealt with a similar incident in the past my credit card company said to treat the returned money as a payment. So if you spent $1000, $500 got returned to your card then you only need to make a payment of $500. So that month you made 2 $500 payments instead of 1 $1000. (I'm in Canada and I have no idea if that makes a difference.)
I don't use my Citi card for much anymore, it is linked to my ez-pass. The rest of them, auto-adjust the balance once the refund clears (can take a few days, not normally a whole billing cycle) and I can't pay more than the actual balance on the card, if we've used the card that month you can pay more than the Statement Balance. I just checked the Chase one that just went out, our payment was Statement Balance - Refunds/Credits = Payable amount on due date. On the new statement it is listed as (Payments, Credits)