On July 22nd 2015, the Consumer Financial Protection Bureau (CFPB) which was establish only four years ago ordered a Citibank debt settlement of roughly $700 million they received from consumers through administration of credit-card add-on services, deceptive marketing, credit monitoring and loosely defined administrative fees. The company was also ordered to pay out approximately $35 million for penalties.
This is an amazing settlement that affected over 8.8 million consumers. The CFPB’s announcement included information about scams the bank and its subsidiaries undertook to cheat people to obtain ill-gotten gains. This tops another settlement that Bank of America was hit with and ordered to pay back $727 million dollars to consumers they defrauded. Both amounts of money should or will be refunded to the consumers who were affected by these deceptive practices. To read about the CFPB’s report click here.
You can see the CFPB’s announcement here, including information on the refunds (and warnings about refund-related scams, since bad guys’ imaginations apparently know no bounds). This is the 10th credit-card settlement the agency has reached, and the second-largest in restitution – just short of the $727 million in refunds it obtained for Bank of America credit-card customers.
The names of the programs that Citibank and its subsidiaries used included IdentityMonitor, Credit Protection, DirectAlert, Payment Safeguard, Privacy Guard, Balance Protector, Citi Credit Monitoring Service, Credit Protector and AccountCare. Our guess is that they used each one of these names for each of the various cards that they offered.
Nationwide Debt Reduction, Inc., a Christian based debt settlement company, headquartered in Mesa, Arizona has for years had to deal with settlements for consumers who have fallen into what is described as the “debt trap.” This is where consumers or businesses are making the minimum monthly payment or a little more than the monthly payment to these credit card companies, however cannot seem to get their principal balance to lower. This is exactly where the credit card companies like you to be. The more interest you pay, the more money they make, in addition to these scams.
For more information about how you too can participate in a program like these, please call our toll free number at 1-800-890-6658 or simply go onto our “Contact Us” page and fill out a short more. One of our professional advisors will help answer your specific questions on how you too can benefit from someone negotiating your credit card debt down to roughly half of what you currently owe.