Citigroup has agreed to refund 1.75 million customer accounts a total of $335 million as part of a settlement reached with regulators on Friday. The bank charged customers more than they should have in interest due to their failure to properly lower annual percentage rates after periodic account reviews required by law. The settlement comes four months after Citi, in a February regulatory filing, publicly disclosed that it had not properly lowered rates on those credit card accounts as part of its APR rate re-evaluations.
Because Citi was proactive about identifying the problem and reporting it to the CFPB in 2017, the CFPB did not issue any additional fines on Friday. The deal contrasts with the $1 billion in penalties the CFPB and Office of the Comptroller of the Currency imposed on Wells Fargo this April for allegedly forcing unwanted insurance on customers who took out car loans and imposing inappropriate charges to lock in mortgage rates.
Refunds will average $190 and all payments should be completed by the end of the year, the bank said in a statement.
I doubt many readers will see a check, since you need to have carried a balance on your cards in order to be eligible. Carrying a balance is never a good idea. Always try to pay your credit cards in full every month. Yes, sometimes people are not able to do so, but that should be the goal.