Citibank Settles Consumer Fraud Lawsuit for $2.3M

Citibank agreed to pay $2.3 million to settle a class action consumer fraud lawsuit that claimed the company charged excessive interest rates on student loans made to the members of the military.

According to Law360 (subscription required), the plaintiffs alleged that the bank applied a six percent interest cap to the student loans of people in the armed forces.

As part of the settlement, all plaintiffs will receive $50 for each loan and every class member who had interest capitalized will receive an amount dependent upon the type of loan they held. The plaintiffs who had “interest capitalized will also receive a payment that is at least 94.5 percent of the average damages.”

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

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