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Citibank Interest Payment Class Action Lawsuit Overview:
- Who: A husband and wife lodged a class action lawsuit against Citibank, NA.
- Why: The plaintiffs allege Citibank did not pay interest on escrow accounts it maintained for mortgage holders.
- Where: The class action lawsuit was brought in New York federal court.
Citibank failed to pay interest on escrow accounts, in violation of their mortgage agreement, a new class action lawsuit alleges.
Lead plaintiffs Glenn and Kim Greenberg, husband and wife and co-mortgagors, say Citibank, and its subsidiary, CitiMortgage, Inc, maintain escrow accounts for its customers from which they pay property taxes and/or insurance premiums.
The defendant collects the projected amount that the borrower will owe for tax and insurance on the mortgaged property, according to the complaint. It directly pays the taxes and insurance due on the borrower’s mortgaged property from the escrow account.
Because the funds paid into an escrow account remain the borrower’s money, New York law requires all “mortgage investing institutions” to pay at least 2 percent interest on such funds; however, Citibank failed to do so, “while enriching itself on the free use of the funds paid into the escrow account by plaintiffs,” the class action alleges.
This failure to pay is confirmed by monthly loan statements provided to the plaintiffs by CitiMortgage, points out the plaintiff.
Citibank Paid Escrow Interest, Then Stopped, Claims Class Action
In November 2018, Citibank transferred the servicing of the plaintiffs’ loan to its agent, Cenlar, while remaining the owner and mortgagee. During the time when Cenlar serviced the mortgage, it paid the plaintiffs interest on their escrow account, allege the Greenbergs.
Citibank has not explained why the plaintiffs were paid the interest required by New York law and plaintiffs’ Citibank mortgage agreement after but not before November 2018, says the class action lawsuit.
Plaintiffs bring this action on behalf of themselves and Classes in New York and Maryland and seek statutory, compensatory punitive and exemplary damages, restitution or disgorgement to plaintiffs and the classes, declaratory and injunctive relief to enjoin the defendant from engaging in the unlawful described in this complaint, attorneys’ fees and pre- and post-judgment interest.
This is not the first Citibank mortgage holder to claim the company failed to pay interest on their escrow accounts. In recent years, a class action lawsuit alleging that Citibank mortgage escrow accounts are not paid interest in violation of California law was lodged.
Learn more about an escrow payments class action investigation here (links to paid attorney advertising)!
The plaintiffs are represented by Oren Giskan of Giskan Solotaroff & Anderson LLP and Joseph S. Tusa of Tusa P.C.
The Citibank Interest Payment Class Action Lawsuit is Greenberg, et al. v. Citibank, N.A., Case No. 1:21-cv-08740, in the U.S. District Court for the Southern District of New York.
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6 thoughts onCitibank Violated Mortgage Agreements by Not Paying Interest on Escrow, Class Action Says
citibank took my home with only a little over a year left to pay!! and had me sign a 30yr contract saying that the only way i could refine the house! So i sign it 30yr contract turn the 15k into alot more and they took my first loan payment for new contract. Then i had court to go to court that week and CitiBank sold my house 185000. I was up first to see judge and show contract and somehow i got push to the back of list and gave new buyer 3hr and 4 attorney show for her by than. it was unbelieve. So ask citi bank for payoff difference say i wasnt owed a thing. Plus my home ins was thur them and was owed more than payoff by citibank sister ins company but didnt get that money either and they keep charging mortage ins when i put 20% down and cancel it several times but was still charged it. that extra money that paid would of pay house off too. all of this when my dad had cancer and was put on hospice in my and died in my house. plus after court i only 24hr to pack and move the new contract they forced me into sign didnt mean anything bc judge said citibank could refund new buyer money and than i could keep my house. Plus mortage for 20k like 4yrs b4 and citibank didnt pay them that either!!!
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I have a family member who had Citibank until 2-3 yrs ago because they no longer was doing mortgages (correct me if I am wrong)They always paid mortgage along with home insurance and property taxes.
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