Citigroup Inc (NYSE:C) The Credit Card Fraud
Citigroup Inc (NYSE:C)’s illegal practices related to credit cards as cited by the US Consumer Financial Protection Bureau.
Credit and identity monitoring products
Nearly 2.2 million consumers who enrolled between 2000 and 2013 have already received or will receive refunds of about US$196 million in fees for credit monitoring products (Privacy Guard, DirectAlert, IdentityMonitor, Citi Credit Monitoring Service). If you enrolled in these products, but did not receive all of the services promised, you will receive full refunds for the time you did not receive full services. Most eligible consumers have already received refunds.
Separately, the bureau found that Citibank violated the law when enrolling some IdentityMonitor consumers and when some IdentityMonitor consumers called to try to cancel that product. The amount of refund is determined by a few factors, including whether consumers tried to cancel (even if they were persuaded to keep it), and how long they stayed in the product.
Consumers who enrolled in IdentityMonitor over the phone on or after January 1, 2009, but who did not upgrade to “triple bureau” credit monitoring, will receive full or partial refunds. You are also eligible if you enrolled over the internet between January 1, 2009 and April 1, 2012.
Debt protection products
Citibank violated the law when selling certain debt protection products (AccountCare, Balance Protector, Credit Protection, Credit Protector, and Payment Safeguard) to some consumers. Some of the deceptive practices happened during telemarketing sales calls, while others happened when consumers applied for credit cards at certain retail stores, using “point of sale” terminals or at specialty services desks.
Consumers who enrolled in these products on or after January 1, 2009, will generally receive refunds. Certain consumers are excluded, including if you paid a claim for benefits under the products or if you signed and returned an “Acknowledgment of Membership” form after enrolling.
Certain consumers who enrolled in these products prior to December 31, 2008, may also be eligible for a refund.
Expedited payment fee
Citibank violated the law when they tried to collect overdue payments from some consumers with cards issued by Citibank’s subsidiary, Department Stores National Bank. During collection calls, Citibank sometimes charged an “expedited payment fee” of US$14.95 without telling the consumer it was charging the fee or misrepresented the purpose of the fee. Nearly 1.8 million consumers who paid an “expedited payment fee” since January 1, 2009 when their DSNB credit card account was delinquent will receive all “expedited payment fees” paid during that time.
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