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Bureau Announces Settlement with Citibank; Cites Self-Reporting
On June 29, 2018, the Bureau of Consumer Financial Protection (BCFP) announced it had settled with Citibank for alleged Truth in Lending Act violations which the company self-reported to the agency.
According to the consent order, the Bureau claims the company failed to reevaluate and lower the annual percentage rates (APRs) for approximately 1.75 million consumer credit card accounts and did not have reasonable written policies and procedures to conduct reevaluations.
Citibank must correct its practices and pay $335 million in restitution to consumers affected by these practices. The company was not issued a Civil Money Penalty because it self-reported the issues to the Bureau.
Notably, the agency referenced in its press release the decision to forgo a Civil Money Penalty because the company had self-reported the issues, a practice not common by the BCFP under previous leadership.