Consumer Bureau Action Tracker

CFPB – Citibank, N.A., Citibank, N.A., Department Stores National Bank, and CitiFinancial Servicing, LLC, Solomon & Solomon, P.C., Faloni & Associates, LLC


State

Nationwide

target

Citibank, N.A., Department Stores National Bank, and CitiFinancial Servicing, LLC

Topics

Enforcement, Debt Collection

The CFPB “ordered Citibank to pay $5 million back to customers and $3 million in penalties over its debt sales and collection practices.” The complaint alleged that Citibank sold “credit-card debt with inflated interest rates” and that they failed to “[forward] consumer payments promptly to debt buyers.” Citibank and two law firms it used for compliance were ordered to “refund $11 million to consumers and forgo collecting about $34 million from about 7,000 consumers.”

  • In February 2016, the CFPB “ordered Citibank to pay $5 million back to customers and $3 million in penalties over its debt sales and collection practices.” The complaint alleged that Citibank sold “credit-card debt with inflated interest rates” and that they failed to “[forward] consumer payments promptly to debt buyers.” “It said it also ordered Citibank, part of Citigroup, and two law firms it used to comply with a court order to refund $11 million to consumers and forgo collecting about $34 million from about 7,000 consumers.” [“Consumer confidence drops to lowest level since July”, The Washington Post, 02/23/16]

Status

Inactive or Resolved


2016-CFPB-0004 2/23/2016 2/23/2016

CFPB Orders Citibank to Provide Relief to Consumers for Illegal Debt Sales and Collection Practices
http://www.consumerfinance.gov/policy-compliance/enforcement/actions/citibank-department-stores-national-bank-citifinancial-servicing/

  • Consumer Financial Protection Bureau (CFPB)
  • Administrative filing
  • None
  • Bank
  • $34,000,000
  • Not Available

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