CitiBank Providing $16 million in consumer Relief
Due to a July 2014 settlement, Citi has been credited with $162.7 million in relief to distressed homeowners as Citi fulfills the terms of the DOJ settlement for selling toxic residential mortgage-backed securities to investors, according to the settlement monitor’s report released in February 2016.
Now Citibank has agreed to provide another $16 million in consumer relief and stop collecting on about $34 million of debt held by over 6,000 Citibank cardholders as it enters the 2nd part of the enforcement actions stemming from Consumer Financial Protection Bureau orders.
Additionally, Citi has already paid an estimated $11 million in refunds to consumers affected by allegedly altered affidavits and will now pay a $3 million penalty to the CFPS’s Penalty Fund for the alleged infraction in CFPCA guidelines.
The law firms representing Citi, and who were accused of the altered affidavits, Solomon & Solomon, P.C.is required to pay $65,000, and Faloni & Associates, LLC, must pay $15,000 to the CFPB’s Civil Penalty Fund. It should be noted that Both firms admitted no wrongdoing in spite of the penalties.
“Citibank sent inaccurate information to buyers when it sold off credit card debt and it also used law firms that altered court documents,” related CFPB Director Richard Cordray in a press release. “Today’s action provides redress to consumers who were victimized by slipshod practices as part of our ongoing work to fight abuses in the debt collection market.”