CFPB orders Citibank to provide relief to consumers for illegal debt sales and collection practices

The Consumer Financial Protection Bureau yesterday took two separate actions against Citibank for illegal debt sales and debt collection practices.

In the first action, the CFPB ordered Citibank to provide nearly $5 million in consumer relief and pay a $3 million penalty for selling credit card debt with inflated interest rates and for failing to forward consumer payments promptly to debt buyers.The order is here.

In the second action, taken against both Citibank and two debt collection law firms used by Citibank, arose from the firms' falsification of court documents filed in debt collection cases in New Jersey state courts. The CFPB ordered Citibank and the law firms to comply with a court order that Citibank refund $11 million to consumers and forgo collecting about $34 million from nearly 7,000 consumers. The two law firms must also pay penalties. The consent orders are here, here, and here.

The CFPB's press release is here.


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