CITIBANK- Interest for late payment

[Grafspee]

Hello,

I have been using a CITIPREMIER MILES for couple of years.
I have always paid on time, however on the last payment i totally forgot to do the transfer on time.
As a result for a payment of approx 300$ I paid 3 days late, i was charged 300$ (BILLED FINANCE CHARGES)
I asked for a waiver but same was declined by the bank.
How it is possible to charge such interest for only 5 days late and only approx 300$ invoice?

Thanks in advance

 

[reddevil0728]

Everything is in the T&Cs. Shouldn't come as a surprise for you.

If you have had GIRO arrangement, the chances of this happening would be lesser.

Maybe you can ask them to consider waiving again and say u will set up GIRO arrangement to reduce the likelihood of this happening again in future.

 

[Grafspee]

I checked the T&C and can't find any supporting clause that can explain how they can charge 100$ (LATE FEE CHARGES - this one OK) and 300$ (BILLED FINANCE CHARGES) for a 300$ paid 3 days late.
But definitely i ****ed up by not arranging a Giro
That's a painful lesson

 

[reddevil0728]

https://www.citibank.com.sg/credit-cards/pdf/credit-card-and-ready-credit-product-highlight.pdf
If still can't get the math. ask them to provide the calculation.

 

[sohguanh]

Hello,

I have been using a CITIPREMIER MILES for couple of years.
I have always paid on time, however on the last payment i totally forgot to do the transfer on time.
As a result for a payment of approx 300$ I paid 5 days late, i was charged 300$ (BILLED FINANCE CHARGES)
I asked for a waiver but same was declined by the bank.
How it is possible to charge such interest for only 5 days late and only approx 300$ invoice?

Thanks in advance

I read from here nowadays banks are getting less lenient on those who forget to pay just one time even if previously you are very punctual.

 

[Grafspee]

https://www.citibank.com.sg/credit-cards/pdf/credit-card-and-ready-credit-product-highlight.pdf
If still can't get the math. ask them to provide the calculation.

Yeah i was referring to same file.
I asked for calculation as it doesn't match at all.

 

[Grafspee]

I read from here nowadays banks are getting less lenient on those who forget to pay just one time even if previously you are very punctual.

It seems my case is FUBAR then :-(

 

[reddevil0728]

It seems my case is FUBAR then :-(

GIRO lor.

 

[hclee01]

I checked the T&C and can't find any supporting clause that can explain how they can charge 100$ (LATE FEE CHARGES - this one OK) and 300$ (BILLED FINANCE CHARGES) for a 300$ paid 3 days late.
But definitely i ****ed up by not arranging a Giro
That's a painful lesson

Late fee is $100 as per the fee schedule.

For Finance Charges, it is computed from the date of all the transaction(s) is(are) made till full payment is made on the account. This is stated in their T&C clause 11.1:
https://www.citibank.com.sg/credit-cards/rewards/citi-rewards-card/pdf/card-members-agreement.pdf
Basically, assuming the following (statement is generated on 1st of each month and due date on 25th of each month):

A) 2 Jan Purchase $1000
B) 3 Jan Purchase $2000

Statement is generated on 1 Feb with outstanding due of $3000, due date on 25th Feb

C) 2 Feb Purchase $3000
D) 5 Feb Purchase $500

No payment is made on due date on 25th Feb

When statement is generated on 1 Mar, the late fee will be billed and the interest charge is as follows (based on 26.95% per annum):

Transaction A interest will be from 2 Jan to 28 Feb (58 days * $1000 * 26.95% / 365 days) = $42.82
Transaction B interest will be from 3 Jan to 28 Feb (57 days * $2000 * 26.95% / 365 days) = $84.17
Transaction C interest will be from 2 Feb to 28 Feb (27 days * $3000 * 26.95% / 365 days) = $59.81
Transaction D interest will be from 5 Feb to 28 Feb (24 days * $500 * 26.95% / 365 days) = $8.86

As you can see from above, even though the payment is late for 5 days, the interest payable will be $195.66 (total interest for transactions A to D)

Hence, the moment the customer does not pay the amount in full or late in payment, the interest free period no longer apply and interest will accrue from the day the transaction is charged to the card. The only way to "regain" the interest free period is when full payment is made on the statement balance.

The computation methodology may varies from bank to bank, but typically, it should follow that of what i have illustrated above. Hope this helps.

 

[sohguanh]

It seems my case is FUBAR then :-(

After read so many in this forum now I so scared login once a week to check my diff cc bill. Sometimes not due yet I pay already.

 

[reddevil0728]

After read so many in this forum now I so scared login once a week to check my diff cc bill. Sometimes not due yet I pay already.

Don’t use giro?

 

[Grafspee]

Late fee is $100 as per the fee schedule.

For Finance Charges, it is computed from the date of all the transaction(s) is(are) made till full payment is made on the account. This is stated in their T&C clause 11.1:
https://www.citibank.com.sg/credit-cards/rewards/citi-rewards-card/pdf/card-members-agreement.pdf
Basically, assuming the following (statement is generated on 1st of each month and due date on 25th of each month):

A) 2 Jan Purchase $1000
B) 3 Jan Purchase $2000

Statement is generated on 1 Feb with outstanding due of $3000, due date on 25th Feb

C) 2 Feb Purchase $3000
D) 5 Feb Purchase $500

No payment is made on due date on 25th Feb

When statement is generated on 1 Mar, the late fee will be billed and the interest charge is as follows (based on 26.95% per annum):

Transaction A interest will be from 2 Jan to 28 Feb (58 days * $1000 * 26.95% / 365 days) = $42.82
Transaction B interest will be from 3 Jan to 28 Feb (57 days * $2000 * 26.95% / 365 days) = $84.17
Transaction C interest will be from 2 Feb to 28 Feb (27 days * $3000 * 26.95% / 365 days) = $59.81
Transaction D interest will be from 5 Feb to 28 Feb (24 days * $500 * 26.95% / 365 days) = $8.86

As you can see from above, even though the payment is late for 5 days, the interest payable will be $195.66 (total interest for transactions A to D)

Hence, the moment the customer does not pay the amount in full or late in payment, the interest free period no longer apply and interest will accrue from the day the transaction is charged to the card. The only way to "regain" the interest free period is when full payment is made on the statement balance.

The computation methodology may varies from bank to bank, but typically, it should follow that of what i have illustrated above. Hope this helps.

Many thanks for explanations. Much appreciated. It really helps to understand how they really invoice

 

[sohguanh]

Don’t use giro?

Last time giro then got issues bank later admit is their side but the refund take so long. So I don't trust giro. No issues smooth but got issues ding dong very long verdict in your favor you still need to wait they refund the fees so from then on no giro for me.

 

[reddevil0728]

Last time giro then got issues bank later admit is their side but the refund take so long. So I don't trust giro. No issues smooth but got issues ding dong very long verdict in your favor you still need to wait they refund the fees so from then on no giro for me.

But would forgetting to pay be more jialat?

 

[sohguanh]

But would forgetting to pay be more jialat?

I guess yes but via the other approach I constantly login to those bank app to check my spending so I see and tell myself to control next month onwards. With giro it is as though items I get is "free" as the giro pay for them seamlessly under the hood. In fact with giro can don't even need to login just keep spending and that is not what I want.

 

[savinmax]

I guess yes but via the other approach I constantly login to those bank app to check my spending so I see and tell myself to control next month onwards. With giro it is as though items I get is "free" as the giro pay for them seamlessly under the hood. In fact with giro can don't even need to login just keep spending and that is not what I want.

On giro does not mean you don’t need to login.
In fact put yourself on Giro as a safety net.
You can still continue to login and pay as and when u are comfortable. As long as pay up around 5 days before Due date, the Giro won’t kick in.
So it’s basically a fail safe feature . Why risk the $100 to $300 charges if due to forgetfulness or unable to access to pay due to unforeseen circumstances?
There is no additional charge for arranging giro or not activated giro due to earlier payment

 

[sohguanh]

On giro does not mean you don’t need to login.
In fact put yourself on Giro as a safety net.
You can still continue to login and pay as and when u are comfortable. As long as pay up around 5 days before Due date, the Giro won’t kick in.

Hmm above is new info for me. Long time ago when I setup means Giro very accurate on that day will deduct monies. You mean now change flow already? With Giro setup if you pay earlier the Giro will cease to activate on that actual day? Can I know you use which bank ?

 

[reddevil0728]

Hmm above is new info for me. Long time ago when I setup means Giro very accurate on that day will deduct monies. You mean now change flow already? With Giro setup if you pay earlier the Giro will cease to activate on that actual day? Can I know you use which bank ?

Even if they deduct, you can still ask them to refund.

but yes treat giro as a fail safe rather than a license to spend.

 

[sohguanh]

Even if they deduct, you can still ask them to refund.

but yes treat giro as a fail safe rather than a license to spend.

The issue is the long period for refund to take place which I don't like. Giro take monies fast but refund monies slow as is dependent on the other party. This all along is the complaints ppl my era and that is why a lot never opt for Giro becuz of this reason. Hear now got e-Giro add a e in front means things are faster ? Hmmm

 

[reddevil0728]

The issue is the long period for refund to take place which I don't like. Giro take monies fast but refund monies slow as is dependent on the other party. This all along is the complaints ppl my era and that is why a lot never opt for Giro becuz of this reason. Hear now got e-Giro add a e in front means things are faster ? Hmmm

faster in terms of set up.

again you have to decide which is worse...

take money back slow or failing to pay on time.