Citi to refund additional $4.2M to overcharged customers in 5 states

Citigroup Inc. agreed with five states to refund an additional $4.2 million to credit card customers the bank allegedly overcharged from February 2011 to August 2017, Pennsylvania Attorney General Josh Shapiro said in a statement Feb. 8.

Citigroup's unit, Citibank NA, in 2018 reached a settlement agreement with the Consumer Financial Protection Bureau to pay $335 million in restitution to about 1.75 million consumers who were inadvertently charged higher interest rates. The bank had self-identified and reported the issues.

Citigroup on Feb. 8 agreed with the attorneys general of Pennsylvania, Iowa, Massachusetts, New Jersey and North Carolina to give the additional money back to customers in those states.

Shapiro said Citi would be refunding more than $1 million to approximately 7,000 accounts in Pennsylvania. The state attorneys general will distribute the settlement funds to eligible accounts, which will be sent as checks some time in the middle of the year.

"The states will administer and distribute the payments at their discretion," Citi told Bloomberg News in a statement.