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Posts: 18
Registered: ‎01-15-2013

Creative Accounting at your CitiBank partner

Tried sending below as a secured message on Citi's site but "Send" returned msg that "Temporarilly Unavailable, Try again later". Thankfully, I copied it to Word to check the character count (1422) to make sure I didn't 2900 limit that didn't count down as I typed. While I will try them again, sending here as has a direct impact on future purchases as is more beneficial to skip your 0% promotion and purchase through a copetitor (Apple, B&H, and others) who offer similar 0% and I can segregate the cashflow, or stop buying from Best Buy until the promotion is fully paid off as I would deny Citi the opportunity to apply excess payments to current month purchases.

Below is the message tried to send to Citi.

I have a $321.60 Zero% 12mo begun 11/26/21 which will take $26.80/mo to fully pay off and avoid accumulated interest over the year. My payment history is to pay the prior month's ending balance and add at least $26.80. I have been paying in excess of that, intending to pay off aggressively. Now the creative accounting that defies logic, as only around $3/mo is applied to interest free balance which won't come close to paying it off and subject me to the accumulated interest as the excess payment, less $3, is used to reduce the CURRENT MONTH charges that haven't even been tabulated for a new ending balance and begin the grace period.

REAL NUMBERS- January stmt, End Balance $141.15, Payment $200. Of that, the Excess $58.85, rather than going 100% to the promotion balance, only $3.22 applied against it with the remaining reducing the Current Balance of $333.48 to a new Ending balance $277.85. Feb stmt, End balance $277.85, Payment $350. Of that excess $72.15, only $3.19 applied to the promotional balance, and the remainder reduced the new purchase current balance of $304.41 for a new end balance of $235.45 (ignoring the remainder of the no interest taking it up the $550.64 ending balance). When submitting a payment, there is no way to specify how to apply, but applying only the "Minimum Payment Due" of around $3 and the remainder to what hasn't been billed yet defies logic and accounting protocol rules

Posts: 96
Topics: 2
Kudos: 14
Solutions: 4
Registered: ‎11-03-2020

Re: Creative Accounting at your CitiBank partner

. Hello, Tizeye!


Welcome to the Best Buy Forums!


I appreciate you taking the time to reach out in regards to your Best Buy Credit Card inquiries. Although the partnership that we have with Citibank, all promotional offers and statements will need to be looked at by a Citibank representative. They'll be able to go over these offers and numbers with you. Please reach out to our Citibank partner at (888) 574-1301, or you can also contact them online here. Thank you again for reaching out and providing this feedback.


Kind regards,

Alex|Social Media Specialist | Best Buy® Corporate
Give Kudos if you like this post or Accept as Solution if it answers your query!
Posts: 18
Registered: ‎01-15-2013

Re: Creative Accounting at your CitiBank partner

Amazingly, was able to send to Citi on third try and got a reply back. Confirmed I was reading my statement correctly - not surprising as I have an MBA with Finance and Accounting. But their explanation was worse than I expected which creates a disincentive to ever use promotional pricing at Best Buy. It is a setup for baloon payments in the final 3 months to avoid interest


Below is my reply to the which you may find interesting. While made every effort to be courteous, I was also blunt at how they were mistreating their client, Best Buy, and costing them sales. May want to pass this on to seior management.


---------------------------------Reply to Citibank--------------------------


Thanks for your quick reply and confirming that I was reading it right. But, the explanation described a policy that is worse than what I expected. Essentially, you are creating a mini-balloon in the final 3 month. Essentially by applying excess from the payment only at the "minimum payment" of around 1% each month instead of at least as sum equal to 1/12 of original each month for a 12 month deferred, by the time 9 months pass, only about 10% of the original would have been paid off, leaving 90% to be paid over 3 months. That would be 30% over each of the last 3 months PLUS to avoid interest on regular purchases, 100% of the last month's ending balance. That would leave new purchases to become the true ending balance for the current month. Your policy of assigning the excess to the current month before it becomes an ending balance to the detriment of the promotional balance is what causes the problem. As you noted, I can call customer service and have it re-allocated (each month) to my specification, but I will remind you, this is what greeted me as I signed on today. "We're experiencing high telephone call volumes and appreciate your patience." Thanks, but no thanks!

1) I will call in one time with a single payment 100% ending balance PLUS 100% Promotion balance (currently $550.64) and make sure none is applied to current month transaction. Kind of defeats the purpose of 12 mo same as cash.
2) Your policy threw your client, Best Buy, under the bus and discourages future purchases. Why should I put myself back into that fiasco when I have other choices. While Best Buy caries all of these and planned this year, a new MacBook Pro purchase through Apple with their 0% plan, likewise a $3000 Sony camera and $2400 lens through B&H or Adorama, both of which have 0% plans and I can directly allocate each month to Best Buy and what goes to the other companies. Conservatively, you cost your client about $8000 in sales with your convoluted policy.

Trusted Contributor
Posts: 2,763
Registered: ‎02-07-2011

Re: Creative Accounting at your CitiBank partner

You used to be able to allocate your payment on Citi banks website. They must be getting greedy.

According to one of the credit acts that was past probably 20 years ago now. They have to apply payments to interest purchases first unless you specifically tell them to apply it to the promo no interest purchases.