The CFPB ordered Citibank to pay $6.5 million “over student loan servicing failure allegations.” The CFPB alleged that Citibank “deceived borrowers about tax benefits, misleading them into believing that they were not eligible for a tax deduction on interest paid on certain student loans.” The bank also “incorrectly charged late fees and added interest to the student loan balances of borrowers who were still in school and eligible to defer their loan payments.”

• On November 21, 2017, issued a consent order to Citibank. [CFPB – Citibank N.A., Case no. 2017-CFPB-0021]

• “Citibank was ordered by the Consumer Financial Protection Bureau to pay $3.75 million in redress and a $2.75 million fine over student loan servicing failure allegations. The CFPB said Nov. 21 the bank deceived borrowers about tax benefits, misleading them into believing that they were not eligible for a tax deduction on interest paid on certain student loans. Citibank incorrectly charged late fees and added interest to the student loan balances of borrowers who were still in school and eligible to defer their loan payments, the CFPB said. Furthermore, the bank misled consumers about how much they had to pay in their monthly bills and failed to disclose required information after denying borrowers’ requests to release loan cosigners, the CFPB alleged.” [Jeff Bater, “Citibank to Pay $6.5M in CFPB Settlement on Loan Servicing,” Bloomberg News, 11/21/17]