Credit Card Payment Applied to Wrong Account

A Naugatuck woman ended up in collections and watching her credit score suffer even though she said she paid her bills on time.

Denise Monks has two credit cards through the same financial institution. She said she has always paid her bills online without issue. Then in March, she got hit with a late charge for one of the cards.

Monks said she did not do anything differently when paying her bill and that her account information was stored online.

When she called customer service, Monks learned the payment was applied to her other account. She asked if the amount could be transferred, and an agent promised to look into it.

Monks said the same thing happened the next billing cycle. She continued to make payments toward the balance, but did not feel she should have to pay the late fees or interest charges.

Monks said she spent hours on the phone with the bank trying to resolve the issue. When the bank sent the account to collections, Monks saw her credit score drop 100 points.

“I went to work the next day almost crying. Because I felt like I just couldn’t straighten this out myself,” she said.

Monks knew she needed help and reached out to NBC Connecticut Responds.

Our consumer team asked the bank to take another look at Monks’ situation. The company said Monks entered the wrong account number when she paid her bill.

The bank transferred the payments to the correct account, and waived the late fees and interest charges calling it a “goodwill gesture.” The company also took the account out of collections and notified the credit bureaus.

Monks does not believe she entered the incorrect account information.

Once she confirmed the issue was settled, she paid both accounts in full and cut up the cards.

Monks said her credit score has gone back up.

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