Citi Avoids CFPB Fine for Overcharging Cardholders $335 Million
- Agency says restitution ordered for 1.75 million customers
- It credited the bank for finding the problem and fixing it
A Citigroup Inc. office building in Los Angeles.
Photographer: Patrick T. Fallon/Bloomberg
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Citigroup Inc. got a break from the Consumer Financial Protection Bureau, avoiding a fine after failing to adjust rates for cardholders and costing them more than $335 million.
The agency, which is being reshaped under President Donald Trump, announced the decision Friday. It credited the lender for discovering the error, alerting regulators and setting out to repay borrowers before being ordered to do so. The lapses affected about 1.75 million accounts, according to a settlement posted on the CFPB’s website.