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Citibank is refunding an additional $4.2 million to credit card customers in five states following a larger 2018 settlement.
As part of the 2018 settlement with the Consumer Financial Protection Bureau, Citi agreed to repay $335 million after it discovered it had improperly increased some customers’ interest rates, Bloomberg reported.
The $4.2 million will be refunded to Citi credit card customers in Iowa, Massachusetts, New Jersey, North Carolina, and Pennsylvania, Bloomberg reported. The states will be responsible for administering and distributing customers’ payments.
From February 2011 to August 2017, Citibank allegedly failed to properly re-evaluated and reduce the annual percentage rate (APR) on certain credit card accounts as required by the Credit Card Accountability Responsibility and Disclosure Act of 2009 (CARD Act), according to EIN Presswire. The company allegedly failed to lower rates for customers who were entitled to APR reductions.
About 25,000 total customers across all five states will be receiving a refund, EIN Presswire reported.
Iowa
Iowa Attorney General Tom Miller announced 1,407 customers in the state will receive a total of $216,325, according to a news release.
The average refund in Iowa will be $153.75.
“Thanks to my AG colleagues and staff for working together to investigate Citibank’s violations and make consumers whole,” Miller said in the release.
Massachusetts
In Massachusetts, 5,474 Citibank credit card customers will receive a total of $895,000, according to a news release from Attorney General Maura Healey.
The expected amount of each customer’s payout wasn’t known.
“Citibank charged consumers excessive interest on their credit cards and violated the law,” Healey said in her release. “With this settlement, Citibank is required to compensate thousands of consumers in Massachusetts for years of overcharges.”
New Jersey
Citibank will refund more than 7,000 customers in New Jersey, according to a news release from Attorney General Gurbir S. Grewal.
The state will receive a total of about $1.13 million to distribute, with each eligible consumer expected to receive between $55.93 and $2,256.76.
“We’re committed to ensuring that New Jersey consumers are treated fairly by credit card companies and financial institutions,” Grewal said in the release. “Today, we’re happy to be putting more than a million dollars back in the pockets of New Jersey residents.”
North Carolina
North Carolina residents who are eligible for the refund — about 4,300 customers — will receive a total of $683,000, state Attorney General Josh Stein said in a news release.
The amount of each customer’s payment was not known.
“When banks unfairly profit by ignoring their legal and regulatory responsibilities, their customers lose,” Stein said in the release. “I’m pleased that today’s settlement will bring refunds to thousands of North Carolinians who were overcharged by Citibank’s unlawful actions.”
Pennsylvania
About 7,000 Citi credit card holders in Pennsylvania will receive refunds thanks to the settlement, according to state Attorney General Josh Shapiro.
The eligible consumers will receive a total refund of $1,063,041, according to a release from Shapiro. Individuals’ payouts were not estimated.
“When banks step out of line, we will hold them accountable,” Shapiro said in the release.
Citibank denies it has violated any consumer protection laws, but has agreed to a settlement with the attorneys general from each of the states involved.
“As Citi previously disclosed in early 2018, we self-identified, self-reported and corrected issues with APR rate re-evaluations as required by Regulation Z of the CARD Act,” Citibank said in a statement, according to PennWatch. “When we reviewed our implementation of the regulation, we identified a small portion of credit card accounts that received impermissible rate increases. We resolved the matter with the Consumer Financial Protection Bureau, refunded customers, and completed a comprehensive internal review to ensure our practices meet regulatory requirements.”
Consumers with questions regarding the Citibank refunds are encouraged to call settlement administrator Epiq at 855-914-4657.
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10 thoughts onCitibank to Refund $4.2M to Credit Card Customers in Five States
I never knew all of this back then and would somehow like to be added to the lawsuit or reopen the lawsuit as this has and is still happening
I need help I make payment to citi bank.They told no payment and giving your information to overseas people
Please add me. I am a senior living in Iowa and have been “taken” by Citibank and its outrageous interest rates. It’s really crooked and I hope people will stay from it. So sad that banks have gotten so greedy.
What about California residents?
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citi bank always giving mis information for bank phone services and cause serious imbalance in account and over spending. losses. can i sue for being given misinformation by racing speedy non compliant agens on phone.
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Add me please