BOSTON (WHDH) - Citibank will refund $895,000 to nearly 5,500 credit card holders in Massachusetts to resolve allegations that it overcharged them for credit card interest, Attorney General Maura Healey announced Monday.
The funds are part of a $4.2 million multistate settlement achieved in partnership with the attorneys general of Iowa, New Jersey, North Carolina, and Pennsylvania.
About 25,000 current and former Citibank customers are receiving refund checks as a result of the settlement, according to Healey’s office.
The Massachusetts assurance of discontinuance was filed in Suffolk Superior Court Monday.
“Citibank charged consumers excessive interest on their credit cards and violated the law,” Healey said. “With this settlement, Citibank is required to compensate thousands of consumers in Massachusetts for years of overcharges.”
An investigation alleges that Citibank failed to properly lower credit card interest rates for certain customers who were entitled to reductions in their annual percentage rate for more than six years.
Citibank’s failure to reevaluate credit card interest rates further violated the Massachusetts Consumer Protection Act, Healey’s office said.
The attorneys general will be distributing the settlement to eligible consumers through Epiq Class Action & Claims Solutions, Inc., a settlement administrator, Healey’s office added.
Consumers do not need to take any action to receive their funds, which will be sent as checks to eligible consumers in the middle of 2021.
Only those Citibank credit card customers who meet certain criteria set by the settling states will receive a refund check.
Consumers who have questions can call Epiq, the settlement administrator, at 855-914-4657.
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