Citigroup Inc. has agreed to repay customers $335 million to settle U.S. Consumer Financial Protection Bureau claims that the bank cheated customers by failing to review and adjust credit-card interest rates, the regulator said in a statement Friday.
The Wall Street lender’s Citibank unit violated the Truth in Lending Act by failing to conduct reevaluations and reduce annual percentage rates for about 1.75 million customers over an eight-year period, CFPB said in its statement . The agency also cited the bank for lacking reasonable written policies and procedures to ensure the reviews were done.
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The bank, which agreed to settle without admitting or denying wrongdoing, will pay restitution to affected customers but won’t face a fine. CFPB cited Citibank’s self-identification and self-reporting of the problems, and noted that the company began paying back customers before ordered to do so.
“We reiterate our sincere apologies to our customers for not correcting these issues sooner,” Citigroup said in a statement Friday. The bank said that an internal review found problems with some credit-card accounts and regulators were promptly informed. Citigroup “found no evidence of employee misconduct.”
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