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Citibank Class Action Settlement Of Class Action Lawsuit Over Credit Card Interest Rates On Delinquent or Defaulted Accounts

If you had a credit card account with Citibank (South Dakota), N.A. or its predecessor Citibank USA, National Association between May 5, 2002 and May 24, 2010, and your interest rate was increased as a result of a default or delinquency, you could get a payment from a class action settlement.

A class action settlement has been reached in a class action lawsuit pending against Citibank (South Dakota), N.A. (“Citibank” or “Defendant) in the United States District Court for the Central District of California (styled Hoffman v. Citibank (South Dakota), N.A., Civil Action Case No. SACV 06-571 AJG (MLGx)) alleging, among other things, that Citibank  improperly imposed increased interest rates on Citibank credit card customers due to delinquency or default without giving prior notice, according to the Citibank class action settlement notice.

The proposed Citibank settlement reportedly provides that Citibank will establish a settlement fund of $10 million.  Citibank settlement class members who timely submit a valid claim form will reportedly receive a check for the lesser of $18 or an equal share of the settlement fund after payment of settlement costs, including certain notice and administration costs and attorneys’ fees and costs.

The Citibank credit card interest rate class action lawsuit settlement class reportedly includes the following persons, unless otherwise excluded:

All persons who, between May 5, 2002 and May 24, 2010, had a credit card account with Citibank (South Dakota), N.A., or its predecessor Citibank USA, National Association, and who paid periodic finance charges that were assessed from the beginning of a billing period in which the periodic rate was increased as a result of a default or delinquency that occurred before August 20, 2009.

The deadline to opt out of (i.e., exclude yourself from) the Citibank credit card class action settlement or to object  to the settlement is reportedly November 8, 2010.

The Court is scheduled to hold a class action settlement hearing on December 13, 2010, at 10:00 a.m., before the Honorable Andrew J. Guilford, Courtroom 10D, Ronald Reagan Federal Building and U.S. Courthouse, 411 West Fourth Street, Santa Ana, California 92701-4516, to consider whether the settlement should be approved, as well as to consider an award of attorneys’ fees and costs to class counsel and payment to Plaintiff for her services as class representative.

For more information on the Citibank credit card interest rate class action lawsuit settlement and/or for updates on the Citibank credit card class action settlement, visit the Citibank class action settlement website:

www.casenosacv06571.com

If You Have Thoughts On The Citibank Credit Card Interest Rate Class Action Lawsuit Settlement, Share Your Class Action Comments Below.

{ 21 comments… add one }
  • Richard Locker September 11, 2010, 11:36 am

    The financial misery that Citibank caused families to endure should be
    dealt with severely enough to be long lasting or they will do it again in a
    different way. Every Citibank employee above the rank of elevator
    operator should be penalized half their annual salary with proceeds to
    their consumer victims. They will never stop otherwise. This
    $10 million lawsuit means nothing.

  • Ralph A. Nuzzo September 11, 2010, 12:45 pm

    The proposed settlement is a joke. Citibank is a habitual abuser of its customers. The bulk of the 10M will go to the attorneys and to offer $18. to the consumer only after you file notice of claim is an insult. I am destroying my card because I frankly do not want to do business with thieves! If they have collected $100M in illegal fees and they offer to settle for $10M do you honestly believe they will mend their ways? It is simply a cost of business. Why not refer it to the US Attorney’s office for criminal prosecution.

  • Laura September 13, 2010, 10:32 am

    In Dec of 2008 citibank raised my interest rate and doubled my minimum payment while I was unemployed. I couldn’t pay it (but was able to pay the original amount, i was never late on this card) and while their CS was helpful for 3 months, allowing me to make my original monthly payment, after that I was told I had to pay the new payments. I could not. Clearly it was my fault for racking up the debt and I’m in debt settlement now but Citibank made it impossible for me to repay them and ruined my credit. I am still not sure why they raised my rate other than they possible saw me as a risk because I was unemployed. Anyway, I pulled my bank accounts from citibank (was with them for 14 years) . I will have nothing to do with Citibank in the future. $18 is a joke.

    • RJN April 3, 2012, 5:01 pm

      Wow. I am not surprised that everyoneon here is blaming Citibank for their own personal problems. My first comment is to the person who says Citibank employees should have to give half their salaries for Citi’s so called mistakes. Well, the employees have nothing to do with it or any rules made by the bank, so that person is just ignorant. Also, anyone who goes into a penalty rate for late payments- BOO HOO its in your card agreement , just like a any credit card from ANY bank! Also, banks reserve the right to lower, raise or close your credit line based on many factors including credit bureau info, late payments with other creditors or showing an ” at risk” score for bankruptcy or an account that has been inactive.. So, if your credit card is closed for any of the above reasons and it lowers your credit score, its not Citi’s fault, it’s your own! It’s simple.. YOU applied for the card, YOU spent on the card, its up to you to make your payments on time!

  • boutteperry October 29, 2010, 9:50 am

    I too was a customer of CitiBank.They closed my account after lying to me about the status of my account.They closed my account for no reason.They also lied to the Office of the Comptroller of the Currency
    when I filed a complaint against them.They stated that my credit limit was 2970.00 when in fact it was only $300.I never recieved a credit limit increase in10 years that I had an account with company.

  • Mike November 3, 2010, 10:18 am

    I would like to file a class action in the amout of around 10 billion. This company is the scum of the earth and deserves to be out of business. They took money from the public to bail them out and then stick it to their customers (public) every chance they get.

  • Mary December 12, 2010, 9:08 pm

    They closed one of my accounts with a zero balance and 9.9% interest rate bacause I was not using it. I had these accounts in good standing for many years. My other account was at 9.9 and the next statement went to 27.9% making me pay a monthly fee of $475. per mo., mostly interest rate fees not lowering the balance. When I called and complained, they said they had to do that to make up for all the money they lost with other people not paying due to lost jobs. Didn’t our government give them $$$$$ to help and then I read their bosses got a huge bonus??

  • Bill December 19, 2010, 4:51 pm

    CitiBank illegally increased interest rate after I opted out on changes to Sears credit card and informed them that I would pay off card with existing terms… Hi there,
    The interest rate on your Sears credit card has increased by 15.16%. As of March 23, your old rate of 12.08% is now 27.24%. You may want to investigate … Here is their number: 1-800-815-7701.
    Cheers,
    The Mint Team

    Sears Gold MasterCard
    Balance Available Credit Total Credit APR Total Fees
    –$3,144.10 $0.00 –$8,250.00 27.24% $117.00

    Date Description Category Amount

    05/19/09 Late Payment Fee Late Fee –$39.00
    04/19/09 Thank You Credit Card Pay… $97.09
    04/17/09 Late Payment Fee Late Fee –$39.00
    03/23/09 Thank You Credit Card Pay… $100.00
    03/19/09 Late Payment Fee Late Fee –$39.00
    02/18/09 Thank You Credit Card Pay… $14.59
    01/23/09 Thank You Credit Card Pay… $50.00
    01/09/09 Thank You Credit Card Pay… $50.00
    12/26/08 Thank You Credit Card Pay… $50.00
    12/12/08 Thank You Credit Card Pay… $50.00
    11/28/08 Thank You Credit Card Pay… $50.00
    11/12/08 Thank You Credit Card Pay… $50.00
    10/29/08 Thank You Credit Card Pay… $50.00
    10/15/08 Thank You Credit Card Pay… $50.00
    10/07/08 Thank You Credit Card Pay… $10.00
    10/01/08 Thank You Credit Card Pay… $50.00
    09/17/08 Thank You Credit Card Pay… $50.00
    09/03/08 Thank You Credit Card Pay… $50.00
    08/07/08 Thank You Credit Card Pay… $50.00
    07/23/08 Thank You Credit Card Pay… $50.00
    07/09/08 Thank You Credit Card Pay… $50.00
    06/25/08 Thank You Credit Card Pay… $50.00
    06/11/08 Thank You Credit Card Pay… $50.00
    05/28/08 Thank You Credit Card Pay… $50.00
    05/14/08 Thank You Credit Card Pay… $50.00
    04/30/08 Thank You Credit Card Pay… $50.00
    04/16/08 Thank You Credit Card Pay… $50.00
    03/09/08 Thank You Credit Card Pay… $100.00

    My credit score has gone from 722 to 580 and all the other credit cards did the Universal default increase to 30% and now I face bankruptcy and will lose my home…thanks CitiBank!

  • Chris December 28, 2010, 6:38 pm

    I think we should start a protest againts sears and the home depot among others until they drop Citi as their card backers. For no justified reasons they slashed my credit lines and raised my interest to 29%. These cards were used to purchase building materials for my new house until the bank released money when the projects were completed. Because of their greed my house was almost foreclosed before it was complete and i almost went bankrupt. I tried to explain why my spending habits were the way they were but they really didnt care. I just wonder how many millions of others were treated this way. Seems to be a hell of a way to treat us after we the taxpayers bailed them out. I think we need to contact our U.S. congress and demand that these companied be punished or take into our own hands and refuse to support the companies that support them. eventually something something will be done.

  • Wade A. February 7, 2011, 2:10 am

    I agree with all of you. I have dealt with criminal element Citibank. They are RUTHLESS and UN-AMERICAN!!! The banks, big oil, big pharm, and insurance companies are all getting richer while America and its citizens become impoverished!! They work the system and use the courts and judges to take away our homes, assets, dignity and try to garnish future earnings through trickery, deception and fraud, they paint us as deadbeats. We were the ones working, living and buying before we got sold off! We were and still are being sold off. Citibank, Wells Fargo, Chase, Wachovia run like ORGANIZED CRIME SYNDICATES with no regard for the American people. Who are there investors? I wonder if the demise of our way of life isn’t the biggest terrorist plot. I feel like I’m being ripped and torn. You get the feeling they’re all in on it. There a lot of shady Real Estate people popping up in the ‘”REO game” now, which do a lot of the dirty work for the banks too. It’s like a shark feeding frenzy and the American citizen is the prey. People are what make this country GREAT, so we should start trying to change the way things are. We should outlaw all this nonesense and make it a serious crime to wipe somebody out or destroy their credit with substantial fines behind it going straight to the victims and outlaw any payola/gifts/$$ and all the lobbying to politicians and lawmakers and their staffs somehow and enforce it rigorously. I wish you all, all the best!

  • Michelle A Dalton February 24, 2011, 7:23 am

    What is the status of is suit? Have they settled this action? Thanks

  • Gordon Shaw March 22, 2011, 8:07 am

    Citibank is now attempting to collect on the same action in Florida, in a circuit court. I too was subject to Citi increasing without notice interest rates, and closing down its contracted credit amount.
    Is this verdict good in state law??
    They filed a suit without notice,

  • Fee April 1, 2011, 9:52 pm

    I had been a Customer of Citibank for over 10 years Ive never been late on any of my accounts. I had 0% and 6%, I called in and asked them one day my payments just went sky high. I could’nt believe it and I called in they told me oh yeah we decided your rates should be like 18% I said How?, why?, they said the new Credit Card Laws allows us to increase your rates. I was completely out down I felt so bad. My balances were high, I said what can I do, Over the years you said come on transfer, transfer to us we’ll give you lower rates and I believed you. I felt so decieved. They then said take the new rates or were goin to close your account. Wow, then they did and closed all of them, eventhou we only spoke about one. Never sent any paperwork or anything. So when I got this information, about a law suit and $18, lol, It’s gotta make you wonder why even bother, I’m still calling about the paper work!, lol , No one looks out for the little guys, Big Banks Big money….

  • Robert Newton May 19, 2011, 1:13 pm

    Citibank is full of liars!!! I first got their card in the fall of 1994, was the only credit card I had until I got rid of it in July of 2009.

    On June 10’th, 2009 I opened my statement and found they had defaulted my interest rate to 29.99%! I called to complain and the gentleman I talked to said I had paid late the month before. I have 4 cousins in Des Moines, Iowa where their payment processing center is, know a letter can get to them at home from Muscatine, Iowa in 2, 3 days at the most. Citibank had a payment processing center in Des Moines, a post office box nonetheless and I know they got my payment in time.

    When I called on June 10’th, 2009 to complain, the gentleman I talked to put me on hold, talked to his supervisor and told me they would lower my rate back down. I thanked him and made June’s payment, assuming they would keep their word-BIG MISTAKE!!!!!!!

    In July 2009 I got my bill and was still charged 29.99%!! What’s more, they insulted me with a letter stating that upon further review they were unable to lower my rate back down at that time, went on to say I had to pay the inflated rate for 12 months. Later in same letter they said they may lower my interest rate sooner at their discretion, based on my record with them. I mailed a photocopy of this letter back to them, pointing out that it appeared they were unwilling, not unable, to lower my rate back down at that time. HOW STUPID DO THEY THINK PEOPLE ARE?

    I closed my acount in July of 2009 and never paid Citibank another dime. They recently got a judgement against me but I am going to file Chapter 7 against them, do not deal with liars!! I injured my back last August and am just now getting to where I can go back to work, am looking for a full-time job.

    BEWARE OF THE LIARS AT CITIBANK!!!!!! In the fall of 2009 I heard a friend’s mother had a similar issue with them. She paid electronically every month and yet they defaulted her interest rate, said she had paid late. When she called to complain the lady she talked to looked up the pertinent information, admitted they had purposefully delayed processing her payment so they could default her account.

  • Thomas Thixton July 29, 2011, 12:53 pm

    Wondering if there has been any attempt to file against Citibank for what they have done to Sears over these last few years.

    For over 20 years, I faithfully kept up with my Sears card and used Sears for everything; appliances, carpet cleaning, kids clothes, etc.. Perhaps late once in awhile, but always paying on it when it was cancelled 2 years ago due to Citibank claiming my credit rating on my other cards was not good enough.

    I have not used Sears since. I use to go to Sears all of the time. I have not stopped needing kids clothes or carpets cleaned or microwave ovens, I just have stopped using Sears and I blame this on CitiBank.

    Had CitiBank simply left me alone to continue paying on my Sears card throughout the year as I had, I would still be using Sears services today.

    I feel that CitiBank had a major and deliberate hand in the demise of Sears and Sears’ loss of customers like me. I paid my Sears credit card faithfully and used Sears services faithfully; we had a good arrangement before CitiBank stepped in. So, if there is any movement to sue CitiBank over this, I would like to participate.

  • Pamela Ambrose April 17, 2012, 7:32 pm

    I never knew anything about this law suit,because I’d have joined.They took me to the cleaners every chance they got! I mean unbelievable!! I was taken ill and then got layed off in 2008, and got to the point where I could’nt pay my bill, and they would’nt work with me,so I ended up not making payments. Well they are, and have been trying to sue me.Of course I’m making a long story short. I’m still fighting with them. It just makes me sick !! Andto think we, the taxpayersbailed them out !! And they are going after people like this!!! Bull, If i could get in on a lawsuit for what they done laying all these charges and late fees and charging 14.95 to make a payment by phone,unreal!! Thank- You, Pamela Ambrose

  • Robert Russell April 23, 2012, 9:14 am

    Lobby your Congressman and Senators to re-instate the USURY LAWS. It was illegal to charge these kinds of interest and fees until these laws were allowed to sundown out of existence under the second Nixon administration. What the banks are doing now is just legalized fraud. Research the Usury laws, contact your representatives, make noise in the media, and require a direct response from the Federal Government as to why this is being allowed to go forward.

  • michelle lewis June 26, 2012, 11:35 pm

    how can i file class action with citi bank i had credit card in 2009-2011.
    my address is 1605 hutchinson drive, moultrie, ga. 31768 or above email address

  • GERALD L WAGNER JR February 11, 2013, 4:23 pm

    am I owed anything

  • GERALD L WAGNER JR February 11, 2013, 4:23 pm

    how do i file or find out

  • minnie March 22, 2013, 2:40 am

    Citibank toke me to court and sued me because of their high interest rate. Formerly Sears Card. I am paying a Attorney right now ! $115.00 per month. Justice is a universal law that adjust all matters all ways.

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