Citibank's '0%' offer expires four days before last bill, costs $1,332

[Newsjock]

Source: KCBS

... Justin Miller financed a new Tempur-Pedic bed through Citibank. Miller said the deal was a credit plan offering 12 months interest free. Even though he had the cash, he decided to finance $5,600.

... But after Miller made the last payment, he received a bill from Citibank for $1,332.70. A year’s worth of interest Citibank calculated at 25 percent.

... But according to the statement, the plan expired December 2nd. Miller’s payment was due four days later, after the interest free deal expired on December 6th.

“The statement due date was different from what they call the plan due date,” Miller said. In fact Miller believes the due date was intentional to fool customers into making their last payment after the interest rate expires.

Read more: http://sanfrancisco.cbslocal.com/2011/02/03/consumerwatch-zero-percent-financing-may-prove-costly/

[yourout]

1. Credit Card companys are among the sleaziest on the planet.

[proud2BlibKansan]

2. $5600 for a BED??

Good grief. Sorry he got ripped off but that is ridiculous.

[abelenkpe]

3. I know huh

I think mine was 1500 and I thought that was robbery...

Actually, still do.

Citibank really sucks. I thought Elisabeth Warrne was going to do away with these confusing contracts and such? Love to see that iTunes contract a one page affair...

[REP]

4. If you have arthritis, no it isn't.

That's the cost for a split Cal-king Rhapsody with a split Cal-king adjustable base. Worth every penny to those with arthritis and other conditions.

[Maraya1969]

8. I got the same kind on Ebay for about $500. It is great but because I

sleep on one side it has dipped and it is so hard to move it around to flip the mattress. I don't know if that would happen with a high priced Temperpedic kind but I'll take my mattress again anytime. It really is wonderful.

[elehhhhna]

13. got ours - king, 10 inch - on Overstock for under 500.

IIRC the patent's expired so generic brands are the same thing but cost 10 to 30 percent what a Tempurpedic costs.

[Disintermedia8]

11. Since I paid that much for my mattress 4 years ago

my health has improved due to better sleep. I no longer suffer back aches nor headaches due to lack of proper sleep. I spend 8 hours of each 24 hours in a bed. That equates to one third of my life. Maybe he was wise to purchase that bed.

[SharonAnn]

20. I got a 3" topper for my husband when he was dying,he finally slept comfortably.

I wondered about the Tempur-pedic topper and whether it would help, but it really did.

He had wasted away so much, was so thin that the bony pressure points really hurt when he was tring to sleep, that he needed a different type of padding.

I researched several things and tried this. It was about $500, IIRC, but it was well worth it. Had he lived longer, I would've bought a full Tempur-pedic mattress.

We both said it made a difference and we have and like very firm mattresses.

[walldude]

21. That had to be more than a bed.. Even a temperpedic

only costs about 2 grand for a king...

I bought a made in USA knock off for about 700.. it's the best bed I have ever slept in.

[ProdigalJunkMail]

22. We got the SleepNumber (air chamber) bed

and it probably saved my marriage :-). My wife would sleep on a cloud...I would sleep on a plywood board. This has been the best thing...and it was only about $1500...

sP

[walldude]

29. Wow.. I tried the sleep number but didn't like it...

Different strokes... but it's amazing what a difference a decent bed makes...

[ProdigalJunkMail]

30. It's ALL about the bed...and YOU being happy in it...

I tried the Tempurpedic (sp) and could not STAND it...felt stuck in one spot, claustrophobic even. But once we got this thing I was able to sleep and sleep well really for the first time in my life.

Sleep well, my friend!

sP

[Mnemosyne]

28. Adjustable with the massage, is my bet. n/t

[Shagbark Hickory]

34. And he couldn't apparently afford it.

[Contrary1]

5. Always read the fine print, folks...

Every time I have done the 12 month interest free thing, it has been stated clearly on the monthly bill what date the "plan" ends. That would be 12 months from the day he signed the contract.

Nothing new, and certainly not unique to Citibank.

[kudzu22]

7. Agree mostly, but I shouldn't need a lawyer in order to buy a bed.

[proud2BlibKansan]

9. And if you pay cash for it you avoid all the crap this guy went through

[ProdigalJunkMail]

17. free time/money is great...

if you have the discipline to repay it on time.

sP

[kudzu22]

25. I've only done the 0% financing thing once

and I made sure I knew when it had to be paid in full to avoid the interest charges, and put it on my Outlook calendar.

[uncle ray]

26. not to mention, you get the cash discount.

using credit may have it's advantages, but cash is still king. most businesses will gladly give a cash discount, if you ask for it.

[Initech]

6. More money in Prince Alalweed's pocket.

[Bluenorthwest]

24. Yes, and the taking of interest is hugely forbidden in Islam

But hypocrisy is the unifying sacrament of all religions.

[Initech]

27. I find it interesting that the same guy has both a controlling stake in Citibank and News Corp.

I wonder what he's trying to tell us?

[lpbk2713]

10. Usery

I'd dare them to take me to court on this. And then I'd be sure all the local media heard about it.

[ProdigalJunkMail]

19. And if you signed a contract you'd lose...

you might be a media darling for doing it...but you be a slightly poorer one.

sP

[ET Awful]

12. As much as it may suck, deferred interest and the date it will be applied

is shown clearly on every statement. It is independent of the billing due date and is calculated from the date of purchase.

I hate to defend Citi because I can't stand them myself and won't deal with them, BUT, if he actually read his whole statement instead of just the due date, he would have seen the block showing the balance subject to deferred interest, the amount of accrued deferred interest, and the date the interest would be applied if that subject balance had not been paid in full.

All he had to do was read the statement.

Every time you see a x months no interest offer, it will be billed exactly this way and is from the date of purchase. It has nothing to do with the billing cycle and due date for your monthly payment.

I can post screenshots later of what that section of a bill looks like. Right now my web host is down.

But I've bought things on deferred interest from Best Buy, New Egg, etc. and all my bills showed when the offer expired, how much interest would come due, etc.

I'll add an image later if anyone is interested in seeing how clear they actually make the information.

[ProdigalJunkMail]

15. hate to...

but totally concur with you (not because it's you). Assuming his bill and contract are anything like the ones that we have done the only excuse for missing the period of the no interest loan is simply to not look! He will lose...and lose well...and get to pay his lawyer's fees as well. This bed will end up costing $10K instead of $5.

sP

[Obamanaut]

14. We use some of those interest deferred plans from time to time. If

the plan is for 12 months, we pay it in 11. If 6 months, pay in five. No problem.

[Betty88]

16. Same here

Those deals are great if and only if you read carefully and pay them off well in advance. I take no chances and try to get them done in about have the time allowed.

[fishwax]

18. I've used the deferred interest offers to purchase before

In my experience, the plan expiration date has always been clearly stated, and I think the amount of deferred interest has always been included on the statement as well. (I've never done that through Citibank, but that's been my experience with other companies.)

The deferred interest can be very convenient as long as you pay it off before the plan expires.

[cbdo2007]

23. This is just as much the fault of the retailer as it is Citibank.....

These deals are always in conjunction with the retailer that he bought the bed from, the loan was just carried through Citibank.

It's odd that they don't go back to the retailer, or even mention the retailer here, because they should have explained the financing terms to the customer fully rather than just trying to blame Citibank.

I agree that citibank is definitely at major fault here, but partial blame should also fall to the retailer.

[JuniperLea]

31. Watch those due dates!

They are constantly changing.

I have a Chase/WaMu mortgage that is giving me fits... and a credit card with a due date that's a movable target. I had to start a monthly spreadsheet of expenses to make sure I kept an eye on everything.

[JI7]

32. This is confusing to me, they don't just add interest to the amount due that month ?

you have to pay the interest you would have paid(if not for interest free months) unless you pay it all back before the interst free time is over?

(i have never gotten the limited time interest free plans but it was something i was thinking about recently) i would plan to pay it off before interest starts again but i always assumed the interest would just be on whatever is due the month after the interest free time is over.

[ET Awful]

33. Interest accrues from the time of purchase, but is waived if you pay before

the expiration date of the offer.

Additionally, the reason the interest would not have been billed on that months bill is likely because the offer period expired after the billing date but before the due date (for example, offer expires on 1/20, billing date is 1/15, due date is 2/14 (or something of the sort).

The interest would not have been applied on the 1/15 bill because the offer period was not over. It WOULD, however be due for the entire purchase price for the period of the deferment.

[Jello Biafra]

35. Yes Citibank is sleazy but

I bet you that no one in Sweden pays $5600 or $1500 for one of these beds......