Settlement Reached in Citigroup Home Equity Class Action

13 Sep, 2012 20:00 CET

Citigroup Inc. will pay $120 each to an undisclosed number of former borrowers, and permit customers to challenge the suspension of home-equity loans, to settle a class action alleging that the bank harmed thousands of customers by wrongly reducing or suspending their home equity lines of credit.

Bloomberg reports that under the terms of the settlement, Citigroup’s Citibank unit will also issue proper suspension notices and restore customers’ access to their suspended home equity accounts. Borrowers charged a fee after closing their accounts may apply for $120 each under the agreement.

Citigroup denied any wrongdoing.

The settlement, which awaits court approval, covers customers who had their accounts reduced or suspended based on their property value from 2008 through January by Citibank, according to Bloomberg.

If you or a loved one has been wronged by consumer fraud, contact Sokolove Law today for a free legal consultation and to find out if a consumer fraud lawyer may be able to help you.