CitiBank may have improperly charged NSF fees despite eliminating them in 2022

CitiBank NSF fees overview: 

• Who: CitiBank is included in a Top Class Action investigation into non-sufficient fund fees. The bank notably announced it was eliminating NSF fees in 2022. 
• Why: The investigation includes a number of banks and is meant to determine whether banks potentially charged consumers improper NSF fees. 
• Where: CitiBank is headquartered in New York, New York. 
• How to get help: Those whose bank charged them improper NSFs fees may qualify to join a free NSF fee class action lawsuit investigation.

CitiBank is among a number of banks to stop charging non-sufficient fund fees in 2022. At the time, the bank also did away with overdraft fees, overdraft protection fees and returned item fees. 

At the time, New York-based CitiBank issued a statement saying the decision to remove the fees represented its “continued commitment as a top leader in banking to increase financial inclusion in underserved communities.” 

“This latest enhancement is a significant step for Citi as a leader in the banking industry offering the most consumer-friendly overdraft practices,” says Gonzalo Luchetti, CEO of US Personal Banking at Citi, in the February 2022 statement. 

However, while there is no evidence CitiBank has done anything improper, it is now involved in a class action lawsuit investigation involving improper NSF fee bank charges. 

An NSF fee is a fee charged by a bank when it cannot process a transaction due to the account not having the sufficient funds needed to complete it. 

CitiBank among a number of banks to stop charging NSF fees in 2022

The Consumer Financial Protection Bureau (CFPB) praised CitiBank and others’ decision to stop charging NSF fees, saying at the time the move was a positive development for consumers. 

“Indeed, NSF fees intensify financial distress for consumers, who often are already at their financial edge and who will often also be hit by the fee merchants charge when a consumer’s payment bounces,” the CFPB said. 

Meanwhile, the class action lawsuit investigation into NSF fees looks into whether CitiBank and a number of other banks improperly charged NSF fees. 

According to the investigation, many consumers are unaware it is unlawful for a bank to charge more than one NSF fee for a single failed transaction. 

Have you been charged an improper NSF fee by your bank? You may qualify to join a free NSF fee class action lawsuit investigation.

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