Citi fined with 700 million USD by CFPB

Noam Stiekema

Citi fined with 700 million USD by Consumer Financial Protection Bureau (CFPB) and need to pay compensations to the borrowers because of illegal practices at credit cards. Furthermore, Citi will pay penalties for 35 million USD to the Consumer Financial Protection Bureau and the Office of the Comptroller of the Currency. This is the tenth […]

Citi bank

Citi bankCiti fined with 700 million USD by Consumer Financial Protection Bureau (CFPB) and need to pay compensations to the borrowers because of illegal practices at credit cards. Furthermore, Citi will pay penalties for 35 million USD to the Consumer Financial Protection Bureau and the Office of the Comptroller of the Currency.

This is the tenth such case in the practice of Consumer Financial Protection Bureau, said Tuesday the director of the institution Richard Corday.

CFPB is just marching in the industry and needs to collect such large sums, especially when most of them are returned to consumers, because there is strong political pressure on costs and the Bureau about the way it is financed. Other large banks that were fined due to violations at credit cards are JPMorgan Chase & Co and Bank of America Corp. This fine is about 1% of the total revenues of the bank for 2015.

“Citi is able to pay the cost of the agreement”, the bank said in a statement.

Since the beginning of the financial crisis in 2008 by the financial institution have paid nearly 17 billion USD for fines and court settlements. According to the Consumer Financial Protection Bureau nearly 7 million users have been affected by “deceptive marketing” practices which involve a distortion of costs and fees and charging fees for services that customers have not used. The bank fraudulently charged to nearly 1.8 million customers with unnecessary fees for the transfer on the same day while collecting payments.

By Citi said it paid benefits and have stopped selling products that are part of their agreements with the regulator, including review credit reports to the client against possible fraudulent activity and health products long.

Capital One Financial Corp, American Express Co and Discover Financial Services are among the other credit card issuers who have been fined by the Bureau since 2012.

Read this next

Executive Moves

Finalto recruits Antony Parsons as head of liquidity

Finalto, the financial trading division of Gopher Investments, is making a broader push into the liquidity provision space, culminating in a new appointment focused on expanding the business into new markets.

Digital Assets

Huobi introduces Tether’s stablecoins pegged to euro, gold

Huobi, the world’s sixth-largest crypto exchange by trading volume, is set to introduce for its clients two stablecoins representing ownership of physical gold and Euro-pegged tokens.

Retail FX

Saxo Bank reports lackluster volumes for November; FX up 40% YoY

FX trading volumes through Saxo Bank’s platforms improved slightly in November, extending its volatile curve as investors continued to weigh central banks’ policy against concerns over a global economic slowdown.

Executive Moves

CMC Markets taps Finalto’s Julia Free to head UK compliance

CMC Markets PLC (LSE:CMCX) has onboarded Julia Free as its newest head of UK compliance as part of a broader organizational reshuffling at the UK’s biggest spread better.

Digital Assets

Ankr successfully patches hack, will reimburse victims and take actions to prevent further attacks

DeFi protocol Ankr plans to reimburse its affected users after a hacker managed to exploit a bug in its code that allowed for unlimited minting of its liquid staking token.

Industry News

ASIC cancels/suspends AFS license of AFSL Group and Quantum Funds Management

ASIC canceled the AFS license of AFSL Group because it failed to lodge statements and audit reports and it did not maintain AFCA membership. The Australian regulator suspended Quantum because it does not have the required professional indemnity insurance coverage.

Executive Moves

BidX Markets hires Shaun French as Research Analyst – Multi Asset

“We believe with his background in the Financial Markets and being based in Dubai, he will be able to provide our clients with access to outstanding research, while also being in a great location to help support our international clients base which is growing at a rapid pace’’.

Institutional FX

Nasdaq migrates US options exchange to AWS with +10% performance in round-trip latency

Nasdaq has announced the successful migration of the core trading system of Nasdaq MRX – one of its six U.S. options exchanges – to Amazon Web Services (AWS).

Institutional FX

TraditionData launches oil swaps pricing data at a critical time in OTC oil traded markets

TraditionDATA has announced the release of a new proprietary Oil Swap Model (OSM) which brings further visibility into illiquid and opaque oil markets.

<