(Legal Newsline) —The Consumer Financial Protection Bureau (CFPB) announced
Jan. 23 that it took separate actions against CitiFinancial Servicing and
CitiMortgage Inc. for business practices involving struggling homeowners
seeking options to save their homes.
“Citi’s subsidiaries gave the runaround to borrowers who were
already struggling with their mortgage payments and trying to save their homes,” said CFPB Director Richard Cordray. “Consumers were kept in the dark
about their options or burdened with excessive paperwork. This action will put
money back in consumers’ pockets and make sure borrowers can get help they need.”
to allegations, CitiFinancial Servicing violated the Real Estate Settlement
Procedures Act, the Fair Credit Reporting Act and the Dodd-Frank Wall Street
Reform and Consumer Protection Act’s prohibition on deceptive acts or practices.
The company purportedly failed to disclose foreclosure relief options, duped
consumers about deferring payment dates and charged consumers for insurance
that should have been canceled. CitiFinancial Servicing must fix its
business practices and pay $4.4 million in consumer restitution.
allegedly violated the Real Estate Settlement Procedures Act, and the
Dodd-Frank Act’s prohibition against deceptive acts or practices. The company
must pay $17 million to wronged consumers and clean up its business