YONKERS, N.Y. (Legal Newsline) - Citigroup Global Markets Inc. (CGMI) will return $16 million in overcharges to more than 31,000 of its customers nationwide as part of a settlement reached with New York Attorney General Eric Schneiderman.
Some customers of CGMI, a subsidiary of Citigroup, have already begun receiving refunds, but thousands more are likely unaware of their eligibility for a refund, Schneiderman said Thursday.
“Often, it takes just one tip to uncover an error that affects tens of thousands of individuals,” the attorney general said. “In this case, a bank customer complained to my office about her account. We investigated that complaint and found a widespread problem, one that cost bank customers, in New York and across the country, millions of dollars.
“I want to thank Citigroup for its cooperation, and for ensuring that the agreements made with its customers will be honored -- to the tune of $16 million.”
Customers with TRAK accounts pay an average fee of 1 to 1.5 percent, but the fees were negotiable and many customers were offered a lower-than-average rate.
After an investigation into that process, it was determined that many customers were being charged a higher rate than they had negotiated.
Schneiderman's office is still investigating to determine if more customers were overcharged.
With CGMI's cooperation, the Attorney General's Office also is conducting a wider review of other types of accounts to ensure that all account holders who have been overcharged receive reimbursement.