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Citigroup has agreed to repay $ 335 million to credit card customers who have paid more than they would be interested in the fact that the bank has not lowered its annual interest rate after regular account reviews properly, informed the Consumer Protection Bureau on Friday.
Since 2011, banks have been required by law to review their credit card accounts every six months, assessing whether the factors that led to a rate hike have changed, and whether the account holders are receiving a lower rate, better known as APR
Citi, according to the CFPB, was guilty of "not reassessing and lowering the annual percentages for an estimated 1.75 million consumer accounts under the new rules." The CFPB estimates that cardholders own more than $ 335 million – Dollars have paid more interest than they should have actually spent.
Citigroup, which made an internal compliance review of its credit card fixing practices in 2016, uncovered the flaws and errors not met with additional fines by the CFPB because it reported the violations to the office itself and self-identified.
"(Citigroup) revealed Anfan g 2017, the APR re-evaluation deficiencies and errors the office, began to correct these shortcomings, voluntarily initiated the process of providing restitution to affected consumers and the implementation of improvements to its compliance management systems, "said the CFPB in his billing document.
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In a statement, Citigroup apologized to its customers and added: "Since 2011, according to the Z Regulation under the CARD Act, Citi has reviewed bi-annual US credit card accounts that have experienced interest rate hikes to identify eligible countries for interest rate cuts. "
" While Citi considered a sound methodology possible, a regular internal review has potential shortcomings uncovered impact on some credit card accounts Citi promptly informed its regulators, revised its methodology and introduced one Comprehensive review by, which revealed no evidence of employee misconduct. "
The bank indicated that about 90% of the interest savings due to customers were delivered to the rest" on 1.75 million credit card accounts. Refunds will average $ 190 and all payments should be completed by the end of the year, the bank said in a statement.
Citigroup added or denied any of the results facts or conclusions of the law that CFPB notes.
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