Citibank returned check fees class action lawsuit overview:
- Who: Vivian Khuu filed a class action lawsuit against Citibank National Association.
- Why: Khuu claims Citibank unfairly charges fees to customers who have a bad check deposited into their account.
- Where: The class action lawsuit was filed in South Dakota federal court.
Citibank unfairly charges customers on the receiving end of a faulty check, a new class action lawsuit alleges.
Plaintiff Vivian Khuu’s class action lawsuit claims Citibank charges a fee to customers who have a bad check deposited into their account, despite them having done nothing wrong and having no hand in issuing it.
“By charging its customers significant fees in situations where the customer did nothing wrong and could not have avoided the fee through reasonable diligence, Citibank acted in a manner that is unfair, oppressive, and against public policy,” the class action states.
Khuu wants to represent a nationwide class and California subclass of customers whom Citibank charged a deposited check returned unpaid fee.
Citibank fees not in compliance with CFPB guidance, class action claims
Khuu argues the Consumer Financial Protection Bureau (CFPB) issued a compliance bulletin in Oct. 2022 that reaffirmed the unlawful nature of Citibank’s deposited check returned unpaid fee policy.
“The CFPB noted that these fees cause substantial monetary injury for each returned item, which consumers cannot reasonably avoid because they lack information about and control over whether a check will clear,” the class action states.
Khuu claims Citibank is guilty of breach of contract, unjust enrichment, breach of the implied covenant of good faith and fair dealing and violations of California’s Unfair Competition Law and Consumer Legal Remedies Act.
She demands a jury trial and requests declaratory and injunctive relief and an award of actual, consequential, punitive, statutory and treble damages for herself and all class members.
Four military veterans filed a separate class action lawsuit against Citibank in Sept. 2022 over claims the bank hits military veterans and servicemembers with unlawful interest rate hikes upon their return from service.
Have you been charged a deposited check returned unpaid fee by Citibank? Let us know in the comments.
The plaintiff is represented by Scott N. Heidepriem, Matthew A. Tysdal and Pete Heidepriem of Heidepriem, Purtell, Siegel & Hinrichs, LLP and Lisa R. Considine, David J. DiSabato and Oren Faircloth of Siri & Glimstad LLP.
The Citibank returned check fees class action lawsuit is Khuu v. Citibank NA, Case No. 4:24-cv-04037, in the U.S. District Court for the District of South Dakota Southern Division.
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6 thoughts onCitibank class action alleges company charges unfair returned check fees
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Citibank also scams people who apply for their “reward” credit cards promising a discount for applying, but you’re unable to use it till the card arrives and when the card does arrive the coupon has expired. This happened to me with the Walmart and Belk credit card and that’s $500 I was promised but never received due to deceptive bait and switch practices. Someone really needs to do a class action on this. I’m sure thousands experienced the same and these greedy corporations should not be able to pray upon us this way without being accountable! Instead, some douche canoe CEO is enjoying a new car and yacht each year
Citibank close my account due to charges that I did not make.How may I go about this.
I was trying for Wells Fargo I was a customer with them sense 2009 and I had lost all my accounts due to bull crap
I have a citibank account last year 2023. I have money in the account for 19k they won’t give my money , they charge my account for fees I never have a chance to withdraw because the wire transfer deposit from my relative was investigate by the bank because the transfer was large amount of money the citibank end up closing my account it seem like the bank stole my money.
My mother had 2 citibank credit cards both totalling about $25000.00 limits together for over 21 years and added me to her account. I would make the payments and they would confirm the payment. The accounts were always paid and in good standing never held a balance long. Card had a $2200.00 balance and $9000.00 available credit. Then days later after payment was made they would return the payment and charge $40 nsf and then my mom would walk in and pay cash then they would accept. Then they closed her account. It’s insane they are horrible!