In 2015, the CFPB fined Citibank and some of its affiliates $770 million, alleging they used “deceptive marketing and billing tactics” to sell “credit card add-on products.” The bureau alleged Citibank’s practices affected nearly 4.8 million consumers.

• The Office of the Comptroller of the Currency filed a separate yet simultaneous order against Citibank. The orders were not linked “partly because each has jurisdiction of different laws in the area around deceptive marketing and selling of certain financial products.” [Rachel Witkowski, “Citi Pays Steep Price for Credit Card Add-On Products,” Payments Source, 07/21/15]

• The CFPB said that the bank “unfairly hooked consumers into debt protection and credit monitoring products that were partly administered by vendors and charged deceptive fees for collecting payments on certain delinquent card accounts.” The order settled “an extensive regulatory investigation in which the bank was cited for activities in partnership with vendors dating as far back as 2000 and extending through 2013 with some products.” The regulators claimed that “Citibank and two subsidiaries used deceptive marketing and billing for debt protection and credit monitoring products.” [Rachel Witkowski, “Citi Pays Steep Price for Credit Card Add-On Products,” Payments Source, 07/21/15]

• The bank was “cited for enrolling consumers in certain products even when they were not eligible to receive the product’s benefits, nor were they informed they were ineligible.” Approximately 4.8 million consumers were affected by these practices. Citicorp Credit Services, a Citibank subsidiary, “was specifically charged with illegally enrolling consumers into certain products by using deceptive questions and billing processes.” [Rachel Witkowski, “Citi Pays Steep Price for Credit Card Add-On Products,” Payments Source, 07/21/15]

• Citibank “was charged with billing consumers for credit-monitoring products without having the necessary authorization from the consumer and in other cases, not providing the full benefits thereafter. These billing activities occurred as early as 2000 through 2013 and affected more than 2 million consumer accounts.” Additionally, the bank “faced another citation for charging a $14.95 fee to consumers who were paying for a delinquent retailer-affiliated card by phone using a checking account.” [Rachel Witkowski, “Citi Pays Steep Price for Credit Card Add-On Products,” Payments Source, 07/21/15]

• “Citibank and its subsidiaries” were required to “pay $700 million in restitution to nearly 9 million affected consumers and a $35 million penalty to the CFPB.” [Rachel Witkowski, “Citi Pays Steep Price for Credit Card Add-On Products,” Payments Source, 07/21/15]