Mike Timmermann, Clark.com
If you have a Citi credit card in your wallet, you may be owed some money as part of a settlement that Citibank has reached with the Consumer Financial Protection Bureau (CFPB).
Citi settlement: Credit card customers to receive $335 million in refunds
The CFPB said that Citibank failed to reduce the annual percentage rates (APRs) on some customers’ credit cards:
“As described in the consent order, the Bureau concluded that Citibank violated the Truth in Lending Act by failing to reevaluate and reduce the annual percentage rates (APRs) for approximately 1.75 million consumer credit card accounts consistent with regulatory requirements, and by failing to have reasonable written policies and procedures to conduct the APR reevaluations consistent with regulation.”
Under the terms of the consent order, Citibank must correct these practices and pay $335 million in restitution to consumers affected by them.
Citibank self-identified and self-reported the violations to the CFPB, so no additional fines were assessed.
CNBC reports that Citibank said the refunds will average about $190. They’re expected to be issued to affected customers by the end of the year.
In a statement to CNBC, the bank apologized to consumers for not correcting the matter sooner.
According to Marketwatch, customers who are owed money from the settlement don’t have to take any action — they’ll automatically be refunded.
Read more about the settlement from the Consumer Financial Protection Bureau.