A major credit card company has reached a settlement with the state on the interest it charged customers.
Iowa Attorney General Tom Miller announced Citibank will pay around 1,400 Iowa customers refunds totaling some $216,000.
Iowa and four other states alleged Citibank failed to properly reevaluate and reduce the annual percentage rate for certain consumer credit card accounts consistent with federal law from February 2011 to August 2017.
The attorney general will be distributing refunds and those eligible do not need to take any action to receive their refunds Those who have questions can call toll free: 855-914-4657.
Four other states are also getting refunds with the total payout by Citibank of $4.2 million.
Citi released this statement on the settlement:
As Citi previously disclosed in early 2018, we self-identified, self-reported and corrected issues with APR rate re-evaluations as required by Regulation Z of the CARD Act. When we reviewed our implementation of the regulation, we identified a small portion of credit card accounts that received impermissible rate increases. We resolved the matter with the Consumer Financial Protection Bureau, refunded customers, and completed a comprehensive internal review to ensure our practices meet regulatory requirements.
Today, Citi has voluntarily signed an agreement with five states totaling $4.2 million in which the states will provide certain consumers with payments related to this legacy issue. The states will administer and distribute payments at their discretion. While Citi denies violating the states’ consumer protection laws, we are pleased to put this matter behind us.
(This story was updated to add the Citi statement)
