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CFPB Takes Action Against Citi
On Monday, January 23, 2017, the Bureau took separate actions against Citi Financial Servicing and Citi Mortgage for allegedly not informing borrowers about their options to avoid foreclosure and asking consumers to complete excessive paperwork for foreclosure relief. Specifically the CFPB claims Citi Financial:
- Kept consumers “in the dark” about foreclosure relief options;
- Misled consumers about the impact of deferring payment due dates;
- Charged consumers for credit insurance that should have been cancelled;
- Prematurely cancelled credit insurance for some borrowers;
- Sent inaccurate consumer information to credit reporting companies; and
- Failed to investigate consumer disputes.
Under the CFPB’s consent order, Citi Financial Services must pay $4.4 million in restitution to consumers, as well as an additional $4.4 million to the CFPB Civil Penalty Fund. The company also must clearly disclose conditions of deferments for loans and stop supplying incorrect information to credit reporting companies.
The CFPB further ordered Citi Mortgage to pay $17 million to harmed consumers in addition to a $3 million civil money penalty. The company was also ordered to clearly identify documents consumers need when applying for foreclosure relief and freeze any foreclosures related to the flawed application process and reach out to harmed consumers.