Business

Citi to Refund $700 Million for Deceptive Card Practices

Published

11 years ago

July 22, 2015

In this Jan. 15, 2015 photo, a Citibank sign hangs above a branch office in New York. The Consumer Financial Protection Bureau on Tuesday, July 21, 2015 said that Citi will have to issue refunds to 8.8 million affected consumers who paid for credit card add-on products and services, like credit score monitoring or “rush” processing of payments. (AP Photo/Mark Lennihan, File)

KEN SWEET, AP Business Writer

NEW YORK (AP) — Nine million credit card customers will receive refund checks from Citigroup after U.S. regulators forced the bank to repay $700 million and fined it $70 million for illegal and deceptive practices.

The order, coming from the Consumer Financial Protection Bureau, is the latest multimillion dollar settlement against the largest credit card issuers for their role in selling “add-on” products to customers, such as credit score monitoring or “rush” processing of payments. Bank of America reached a similar, slightly larger settlement with regulators in 2014 and JPMorgan Chase was fined in 2013.

Under an agreement announced Tuesday with the CFPB, Citi will issue refunds to 8.8 million affected consumers who paid for these types of add-on products, and will pay two separate $35 million fines to the CFPB and to the federal bank regulator the Office of the Comptroller of the Currency.

The settlement comes on the five-year anniversary of the creation of the CFPB, which came into existence through the passage of the Dodd-Frank law that overhauled the financial industry following the 2008 financial crisis.

“We continue to uncover illegal credit card add-on practices that are costing unknowing consumers millions of dollars,” CFPB Director Richard Cordray said in a statement. “This is the tenth action we’ve taken against companies in this space for deceiving consumers.”

Some of the illegal activity by Citi goes back to as early as 2000, the CFPB said, and ended in 2013, and covers a range of products sold by Citi and third-party affiliates.

In one allegation, Citi telemarketers were said to have sold consumers identity theft protection services with a 30-day “free” trial, when no such free trial existed; or signed up consumers for an add-on service when it was ambiguous whether the consumer actually said they wanted it. In another situation, Citi sold credit monitoring services when Citi wasn’t performing such services at all, or were not actively monitoring a consumer’s credit file with credit reporting bureaus.

Citi also allegedly misrepresented its customers by charging a $14.95 “expedited” payment fee to customers who made over-the-phone payments and did not tell consumers about no-fee options.

Credit card add-on services were a lucrative source of revenue for banks for several years, sold to consumers as ways to protect their credit scores or identities or protect them if they lost their jobs. Banks’ marketing of such services largely ended after increased regulatory scrutiny.

“Add-on services, for the most part, provide no benefit to consumers and people should be very careful to sign up for them,” said Nick Bourke, an expert at the Pew Charitable Trusts specializing in consumer lending issues.

While credit card companies have largely ended the practice, Bourke and other consumer financial advocates say they are still sold by some high-cost installment loan providers or payday lenders.

In a statement, Citi said it stopped the practices and has been issuing statement credits since 2013 to the affected customers. For the customer who no longer has an account at Citi, a check will be mailed.

Citi has already set aside the money to pay for the settlement, a spokeswoman said.

Citigroup shares rose 25 cents to close at $59.10, despite a broad market decline.

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Oakland Post: Week of September 2 – 8, 2026

The printed Weekly Edition of the Oakland Post: Week of September 2 – 8, 2026

Published

5 days ago

September 7, 2026

Oakland Post

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Business

Longtime BWOPA Member Brendalyn Goodall Appointed to California Workforce Development Board

Gov. Gavin Newsom has appointed longtime Black Women Organized for Political Action (BWOPA) member Brendalynn Goodall to the California Workforce Development Board. Goodall, an Oakland resident with decades of experience in public service, has held leadership positions focused on

Published

2 weeks ago

August 30, 2026

Post News Group

Post Co-Publisher Gay Plair Cobb with Brendalynn Goodall. Courtesy photo.

By California Black Media

Gov. Gavin Newsom has appointed longtime Black Women Organized for Political Action (BWOPA) member Brendalynn Goodall to the California Workforce Development Board.

Goodall, an Oakland resident with decades of experience in public service, has held leadership positions focused on employment, aging services and assistance for underserved communities.

“Brendalynn will be a great addition to this Board,” said Gay Plair Cobb, who served as former state Assemblyman Sandre Swanson’s alternate to the California Workforce Development Board (CWDB).

“She understands that California’s non-profit organizations serve persons who have the most significant barriers to their labor market success and that the Board should help these groups navigate the complicated requirements of state funding.

“In other words, she will be a strong advocate for our most marginalized populations. Her voice is needed now, more than ever.”

CWDB works with the governor to shape workforce policies, programs and investments designed to strengthen the state’s economy. It collaborates with employers, workers, labor organizations, educational institutions, community groups and California’s 45 local workforce development boards to expand access to quality jobs and respond to regional employment needs.

According to the board, its work includes coordinating state programs and guiding investments in workforce training and development.

BWOPA California celebrated the appointment, describing Goodall as a dedicated advocate for workers, families and older adults.

“Her appointment reflects a lifetime of leadership, service, and unwavering commitment to strengthening California’s workforce and expanding opportunity for all,” the organization stated in a press release.

Goodall served as summer jobs program coordinator in the Oakland Mayor’s Office from 2012 to 2014. In that position, she helped connect young people with employment opportunities and job experience.

Before joining the Mayor’s Office, Goodall was division manager for Aging and Adult Services in the City of Oakland Human Services Department from 2002 to 2011. She previously served as senior services supervisor and program director for the city’s Department of Aging, Health and Human Services from 1990 to 2002.

Goodall is also a member of the California Commission on Aging, which advises the governor and state officials on policies and programs affecting older Californians.

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Black History

Jackie Wright Champions Bay Area Stories, Filmmakers and Cultural Institutions

As an award-winning communications professional, Wright has worked with corporations, nonprofits, government agencies, educational institutions, artists, and community organizations. In 2026, she expanded that work by launching an introductory public relations class for small businesses and nonprofits, offering practical tools for gaining visibility, shaping messages and building productive relationships with the media.

Published

2 weeks ago

August 30, 2026

Post News Group

Jackie Wright of Wright Enterprises. Photo courtesy of Wright Enterprises.

By Carla Thomas

Jackie Wright has spent more than two decades helping people, organizations and communities understand the power of a well-told story.

As founder and president of Wright Enterprises, a San Francisco-based strategic communications and public affairs firm, Wright has built a career spanning journalism, public relations, media relations, crisis communications, community engagement and multimedia storytelling.

Wright’s commitment to storytelling is also deeply personal. She wrote and co-directed the 15-minute documentary, “Love Separated in Life…Love Reunited in Honor,” which chronicles the story of her parents, Specialist Five (S5 Wyley Wright Jr. and Ouida Fay McClendon Wright. Her father, a U.S. Army helicopter crew chief, died in Vietnam in 1964 while serving as an honor guard during a visit by then-Secretary of Defense Robert McNamara. Decades later, Wright and her siblings had their father exhumed from a segregated cemetery in Jacksonville, Florida, and their mother moved from her burial place in Georgia so the couple could be reunited at Arlington National Cemetery in 2014.

The family journey later took Wright and her sister to Vietnam, where they discovered the former military compound that had been named in honor of their father and another fallen soldier. The documentary, centered on love, war, family, racial understanding, and remembrance, earned festival recognition at screenings.

“It was quite an honor to learn about my family’s history and share it on film,” said Wright.

That filmmaking experience complements Wright’s longstanding advocacy for independent cinema. She has served as a media partner and brand ambassador for Bay Area film festivals, including the San Francisco Black Film Festival, Oakland International Film Festival, and the Durban International Film Festival in South Africa.

“It’s important to help filmmakers and underrepresented stories reach broader audiences,” said Wright.

Whether promoting a neighborhood organization, championing an independent filmmaker or preserving her own family history, Wright has remained consistent. Through Wright Enterprises, she has turned communications into both a profession and a form of community service, telling stories that might otherwise go unheard.

“Our stories are an integral part of our history, and our history is not only American history, but worldwide,” she said.