Citibank Bank Account Or Service Complaint

Citibank Bank account or service department,

Other bank product/service Account opening, closing, or management California

Some years ago ( approximately 2010 ) I opened what I considered to be a Line of Credit with variable rate through Citibank. Citibank, according to my monthly statements, terms this as a " Variable Rate Equity Source Account ''. Total amount that I requested was for $140000.00 of which I used $100000.00 or so. What I do not understand is that no matter that the interest rate varies, and I have made two payments totaling $2000.00 strictly towards principal my principal balance hardly decreases. Even when I paid down the principal the bank still went ahead and based their following month 's interest accrual on the total prior to the principal payment. The interest rate never varies in total ; each month at least for this year it is averaging at 5.30 %. So my total monthly payment which includes principal and interest never changes much from approximately $450.00 give or take a few dollars.


( spread ). It is exceedingly difficult for me to understand if I entered into a contract understanding that I will be charged a variable rate that I am in reality paying what amounts to be a fixed rate. Again as I mentioned above my average monthly statement is for $450.00 give or take a few dollars. This is not right in my opinion. Also I have to complain about Citibank 's procedure for paying down on my principal. I feel they make it very difficult for a customer to do so as I was told that I needed to mail a check stating it 's for principal with the excuse that only the particular department it goes to can handle the transaction. I was told that it was impossible to even make an online payment towards principal. I can not understand why in the internet age this is not possible ... or to have a bank clerk process the transaction! What I feel is Citibank knows a snail mailed check will most likely not reach them in time for the principal balance to be decreased thereby allowing them legal right to charge interest based on a higher principal balance. It is, to me, basically ripping off customers.