Refunds

“Citi’s Refund Tab: $335 Million, The Wall Street Journal, February 24, 2018 B10. Bank pays up for failing to lower credit card interest rates.

After you miss a payment, federal law requires credit card issuers to review your payment history after six months, and sometimes to lower your interest rate.  Citibank failed to do this properly for 1.75 million customers, over six years.  Apparently, Citi found the error itself, and reported it to the government.

Isn’t this how things are supposed to work?  The government passes a law, companies put in processes to comply, and monitor their operations to make sure they do comply.  When the monitoring discovers problems, the company reports to the government and refunds the money.

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Filed under Compliance, Controls, Corporation, Duty, Governance, Internal controls, Oversight, Third parties, To report

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