Law360, New York (March 17, 2015, 12:15 PM ET) — Citibank N.A. on Tuesday said its Argentina branch will exit the custody business following threats from the Argentine government after a federal judge in New York barred the bank from paying out on bonds subject to a bitter $2.3 billion dispute with a U.S. hedge fund.
In a letter to U.S. District Judge Thomas Griesa of the federal district court in Manhattan, Citibank said that it had been subject to repeated threats that the government of Argentina would pull its operating license and bring civil and…
(Bloomberg) — Citibank agreed to change how it uses a customer-screening tool in order to reduce barriers to low-income people getting bank accounts amid a probe by New York’s attorney general.
The Citigroup Inc. unit was among the banks being investigated by New York Attorney General Eric Schneiderman over their use of ChexSystems, a consumer reporting agency that screens people seeking to open checking or savings accounts.
Schneiderman announced the Citibank agreement Wednesday.
Earlier, Capital One Financial Corp. agreed to limit its use of the tool, which helps banks analyze customers’ financial histories for evidence of credit or fraud risk. The system has disproportionately affected lower-income customers by flagging them for relatively minor financial mistakes, Schneiderman said.
“No one should be denied access to a bank account because of a bounced check from years ago or because they were a victim of identity theft,” Schneiderman said. “I commend Citibank, following Capital One, for stepping up and working with us to help eliminate an unnecessary barrier to opening a checking or savings account.”
When barred from using banks, lower-income people are often forced to resort to check-cashing centers and other costly alternative financial services, Schneiderman said.
OAKLAND, Calif. (CN) – Two classes of homeowners failed to prove that Citibank and JP Morgan Chase banks conspired with property inspection companies to charge excessive fees, a federal judge ruled.
In dismissing both class actions on Jan. 6, U.S. District Judge Yvonne Gonzalez Rogers wrote that the homeowners could not show “the existence of an association-in-fact enterprise united for the as-alleged common purpose.”
Lead plaintiff Gloria Stitt, who sued Citibank, and Diana Ellis, who sued Morgan Chase, both in July 2012, claimed the banks colluded with subsidiaries, affiliates and vendors to profit from inspections that they routinely assessed on delinquent homes. Stitt claimed that Citibank ordered unnecessary monthly property inspections through a vendor called Safeguard. One class member’s home allegedly was inspected more than 30 times in three years.
But Judge Gonzalez Rogers found that the classes failed to show a RICO conspiracy between the banks and vendors.
“Plaintiffs’ allegation that Safeguard ‘conducted the inspections according to policies and procedures developed collaboratively with Citi,’ does not render plausible plaintiffs’ claim that the members of the Citi Enterprise associated for the alleged, and fraudulent, common purpose,” the judge wrote.
Law360, San Francisco (September 30, 2014, 9:50 PM ET) — A California federal judge on Tuesday cast doubt on a pair of proposed class actions accusing Citibank NA and JPMorgan Chase & Co. of violating the Racketeer Influenced and Corrupt Organizations Act by charging property-inspection fees to mortgage borrowers in default, saying she didn’t think their inspection fee policies amounted to racketeering.
Citibank and Chase urged U.S. District Court Judge Yvonne Gonzalez Rogers to toss the complaints, arguing that both companies had been operating within their roles as loan servicers when they ordered a third-party company…
Citibank Settles Conn. AG Suit Over Online Security Breach
Law360, New York (August 30, 2013, 7:22 PM ET) — Citibank NA has agreed to pay $55,000 and undergo an independent security audit to resolve the Connecticut attorney general’s allegations that the company failed to adequately protect the personal data of online banking customers whose information was compromised in a 2011 breach, the regulator said Thursday.