Citigroup has been ordered to pay a fine of about $770m over deceptive marketing and unfair billing of credit card add-on products.
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The bank will pay $700m as compensation to customers, as well as $35m each to the Consumer Financial Protection Bureau (CFPB) and the Office of the Comptroller of the Currency.
Citibank’s practices included deceptive marketing, billing and the administration of debt protection and credit monitoring services.
These practices affected about seven million of the bank’s customers. Moreover, another 1.8 million consumers were charged expedited payment fees during collection calls.
CFPB said that the bank would be restricted from marketing all add-on services by phone or at point of sale till it submits a compliance plan to the bureau.
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By GlobalDataCFPB director Richard Cordray said: "We continue to uncover illegal credit card add-on practices that are costing unknowing consumers millions of dollars.
"In our four years, this is the tenth action we’ve taken against companies in this space for deceiving consumers. We will remain on the lookout for similar conduct and will address it as we find it."
