Citibank Refunds $335M to Consumers, Avoiding Penalties

Citibank Avoids Penalties by Self Reporting, Signals Shift in CFPB Approach
– Auto Finance News

​Manatt’s Richard Gottlieb, co-chair of the firm’s financial services group, was interviewed by Auto Finance News for an article on Consumer Financial Protection Bureau actions taken against Citibank.

Citibank is refunding $335 million to 1.75 million accounts after allegedly miscalculating interest rates, but is avoiding having to pay any additional fines. Gottlieb told the publication the CFPB may be signaling that lenders can avoid fines if they self-report.

Citibank’s “self-policing or self-reporting policies warranted the CFPB decision not to impose penalties,” Gottlieb said, adding that the bureau is attempting to encourage self-reporting as a way to avoid costly penalties. “Even during the Cordray era, companies avoided substantial civil monetary penalties by self-reporting.”

Read the article here