Two subsidiaries of Citibank directed to pay $28.8 million in compensation, refunds, and civil penalties
Washington, D.C.: CitiFinancial Servicing and CitiMortgage (both subsidiaries of Citibank) were accused by the Consumer Financial Protection Bureau (CFPB ) of misinforming
consumers seeking foreclosure relief, and subsequently ordered the two subsidiaries to pay an estimated $28.8 million.
The allegations stated CitiMortgage had requested files already submitted or files unnecessary to the relief-seeking process from consumers.
CitiFinancial Servicing was accused of improper presentation of foreclosure relief options to consumers, and charging credit insurance to some borrowers that should not have been assigned those costs.
CitiMortgage is asked to pay “an estimated $17 million to compensate wronged consumers, and pay a civil penalty of $3 million,” while CitiFinancial Servicing is asked to “refund approximately $4.4 million to consumers, and pay a civil penalty of $4.4 million,” according to the release from the CFPB.
The consent order against Citi Financial Services is available at: http://files.consumerfinance.gov/f/documents/201701_cfpb_CitiFinancial-consent-order.pdf
The consent order against CitiMortgage is available at: http://files.consumerfinance.gov/f/documents/201701_cfpb_CitiMortgage-consent-order.pdf
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