Do you have a Citi credit card? You could receive money

Some Citi cardholders are on the verge of having a salary.

Bureau of Consumer Financial Protection Announces Settlement Friday with Citibank

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after finding that Citi had violated truth in loans law

Nearly 2 million Citi cardholders will receive an average refund of $ 190 each according to the terms of the agreement. said in a statement. Citi to Deliver $ 335 Million to Customers

Citi Breaches the Truth in Lending Act by Failure to Re-Evaluate and Reduce Annual Percentage Rates on About 1.75 Million Credit Card Accounts , as required by law enforcement regulations, said the Bureau. The Act requires credit card issuers to review and re-evaluate AARs at least once every six months and reduce them accordingly if the consumer has changed in certain ways, for example if their credit score has improved. . The issuer must reduce the rate within 45 days of the end of this valuation, according to the rules.

As Citi did not do this, some incumbents paid more interest than they should have done, concluded the Bureau.

Card holders with a range of Citi cards.

Citi will not have to pay the Bureau fines in addition to refunds to the consumer because Citibank has identified and reported its violations to the Bureau and initiated its own refund to consumers, the bureau said. We reiterated our sincere apologies to our clients for not correcting these problems earlier, "said Citi in a statement.

Customers who have been affected will automatically be reimbursed and will not need to take any further Action, "said a spokeswoman for Citi.Citi has already paid off some consumers and will continue to send refunds until the end of the year.

Holders of Cards that have been in default of payment should pay close attention to the RAA of their cards, said Matt Schulz, a senior analyst at CreditCards.com.Business companies are legally allowed to increase the card's interest rate for cards. late payment, but as a "penalty rate." But after six months, the card issuer must reevaluate its status and performance.

"If you run your business properly, you have a good chance of seeing this penalty rate reduced to six months, "said Schulz. "It is up to you to make sure that if you have not seen this change, that you reach out to the issuer of your card and say," I did what I had to do.

Of course, it's better not to make a late payment in the first place, he said. Cardholders can avoid this by setting up automatic payments or receiving e-mail or text alerts when their payments are due.