7 On Your Side
Macy's reviews credit card policies
SAN FRANCISCO (KGO) -- There have been complaints about how the Macy's credit card charges interest, and now following an investigation by Michael Finney, there may be changes.
Shoppers who loved Macy's told 7 On Your Side they were nonplused with the store's credit card interest policy. The retail giant was adding interest payments to bills before customers had a chance to pay.
"That happened to me on my very first bill, too. I just got it two months ago, I bought something in September and I got interest on the bill and it was the very first bill that came in," Heather Corsentino from Santa Rosa said.
She wasn't late and still she was being charged interest.
For a bill that was due January 6, the customer had zero balance, zero payments, new charges $201. The interest charges were $2.59. She wasn't late and didn't have a chance to pay.
The explanation Macy's gave was: "To avoid initial interest charge, If you pay your new purchase balance of $201 by Jan. 6, 2010, your initial interest charge of $2.59 on your Revolving Account will be refunded on your next statement."
"It is very confusing because it is money they don't owe, yet it is appearing on the statement. It is though, the company is mixing fantasy with reality," Joe Ridout from Consumer Action said.
But now, following our report, 7 On Your Side received word that Macy's may have changed its practices. Another customer's bill, due on January 26 said zero balance, zero payments, new charges $59.13 and interest charges zero.
The customer received another warning: "An interest charge in the amount of $2 will be added to your revolving account balance if you choose to pay less than the full balance by your due date."
So, the warning was pretty clear on this bill.
But that may not be the end of things: Macy's said these bills are being sent to customers likely to pay the full amount due. Customers paying less should expect the older bills.
But Citi, who is running the Macy's program, isn't so sure this is what is occurring. It is now investigating and will give us a definitive answer.
7 On Your Side will report back when we hear again from Citi. Macy's says this is all happening because of the new credit card rules.
citigroup, shopping, macy's, 7 on your side, michael finney
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