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Citigroup Says Credit-Card Abuse Probes Fuel $266 Million Cost

Citigroup Says Credit-Card Abuse Probes Fuel $266 Million Cost

Citigroup Inc. (C), the world’s biggest credit-card lender, is facing rising costs from the misselling of so-called add-on card products in the U.K. and U.S.

Citigroup boosted reserves by $266 million last year to compensate U.K. customers wrongly sold payment protection insurance, or PPI, according to a regulatory filing today by the New York-based lender. The bank may also face penalties from U.S. regulators amid an industrywide probe into the sale of payment protection and identity monitoring products, according to the filing.

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