I have a graduate student loan with citibank which I paid monthly and was not late at all. I decided to make a large payment in 9 to reduce my principal balance and sent a 15000.- check to reduce my 73000.- balance substantially. I planned on continuing with regular monthly payments; however, after I made that payment, citibank stopped sending me my monthly bills. I was extremely busy with working six days a week, building my business, getting my sons trough college, buying a house and life's events, so I never contacted the bank. I assumed that they didn't use my money as a principal reduction, but as an advance payment, with interest included. Only two weeks ago did I receive my first monthly bill after 28 months. My monthly payments have resumed, however, my balance is the same as it was almost 2 1/2 years ago, still 73000.-. How is that possible? I asked myself and the citibank agent that I contacted after seing the latest statement??? I was told that I failed to make payments and so the interests have accumulated again and therefore my balance is the same as it was before I made the 15000.- payment. I told the customer service person that it makes no sense at all and why did the bank not continue to send me my monthly bills in the first place. He responded that I should have called them and requested that, since I didn't do that, they treated my account like a deferment that I never requested. However, they took my money and used it 100% to their benefit! Pretty underhanded and shady banking practices! I looked up their student loans repayment options onlne and it states very clearly that if you want to make a higher payment, there are two options: a.) reduce principal (as indicated by consumer) and continue to pay monthly or b.) if the consumer doesn't indicate this, the payments will be advanced until the money (including the interest) has been used up, at which time monthly bills will resume.in my case, Citibank used my 15000.- to reduce my principal balance, but they stopped sending me bills, which I never requested! Then they treated my account as if I failed to make payments and so interests accumulated and now my balance is the same as before. I believe we, the working people and middle class, need more protection from these kind of underhanded and shady bank practices. Meanwhile, citibank is paying their executives high bonuses, while they are screwing us without remorse or consciousness.
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