NEW YORK – Citigroup will be refunding $700 million to consumers and will pay $70 million in fines for illegal and deceptive credit card practices.
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The Consumer Financial Protection Bureau said Tuesday 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.
Citi representatives allegedly told consumers there were 30-day "free" trials for some products, when there wasn't, or sold them fraud and identity theft protection when Citi wasn't performing such services at all.
In a statement, Citi said it stopped illegal practices in 2013 and is in the process of issuing refunds or credit card statement credits to the affected customers.