Citigroup Inc. said on Friday that it would refund about $330 million to consumers after discovering it had overcharged 1.75 million credit card accounts on their annual interest rates. The bank found that around $190 per account, including interest, has to be paid to their customers.
1.75 million Credit card accounts over charged
The periodic review, New York-based lender discovered it had overcharged on about 1.75 million credit-card accounts
Credit card issuers are required to semi-annually review accounts that experienced an interest rate increase to determine if those accounts are eligible for a rate reduction, according to the Credit Card Accountability, Responsibility, and Disclosure Act of 2009, known as the CARD act.
However 10% of accounts were overcharged. These 1.75 million accounts will receive refunds.
The refund won’t have much of an impact on Citi, says Matt Schulz, CreditCards.com’s senior industry analyst.