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Citibank HELOC Class Action Settlement
By Kimberly Mirando
UPDATE: A California federal judge approved the Citibank HELOC class action lawsuit settlement at the March 15, 2013 Final Fairness Hearing.
A federal judge tentatively approved a class action lawsuit settlement that will resolve claims Citibank committed unlawful home equity lending practices by cutting or suspending homeowners’ lines of credit during the mortgage crisis. Class Members are eligible to receive $120 from the class action settlement.
The Citibank lending settlement will resolve a 2009 class action lawsuit, titled In Re: Citibank HELOC Reduction Litigation, that alleges Citibank suspended or reduced borrowers’ home equity lines of credit based on a claim that their homes had significantly declined in value when, according to the Plaintiffs, their home values purportedly had not declined. This was a thinly-veiled attempt to limit the bank’s financial exposure to the collapse of the housing market and to rid itself of below-market interest rate loans, according to the class action lawsuit.
Class Members of the Citibank HELOC class action settlement include all U.S. Citibank customers that held a HELOC between January 1, 2008 and January 1, 2012 and had their Citibank HELOC account suspended or reduced based on a claim by Citibank that the value of their home had experienced a significant decline in value.
Citibank did not admit wrongdoing in agreeing to settle. The total value of the Citibank HELOC class action settlement was not disclosed.
Class Members will receive a number of benefits from the Citibank HELOC class action lawsuit settlement, including a cash award of $120 and the opportunity to reinstate their HELOC in some cases.
Current Citibank HELOC customers do not need to do anything to receive settlement benefits. However, if you are a former Citibank customer and you (1) have closed your HELOC in response to Citibank’s suspension or reduction based upon a significant decline in the value of your home, and (2) paid an early closure release fee to Citibank, then you may submit a Claim Form either using the electronic or paper claim.
The deadline to submit a Claim Form is January 31, 2013.
A Final Fairness Hearing is set for March 15, 2013.
Claim Forms and more information on your rights in the Citibank HELOC Class Action Lawsuit Settlement can be found at www.InReHELOCSettlement.com. Detailed instructions on how to file a claim for the settlement can be found in our Open Lawsuit Settlements section.
Updated March 18th, 2013
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