Class Action Accuses Citibank Of Introducing Illegal Interest Rates And Credit Card Fees Changes Without Informing Customers
Financial services giant Citibank is involved in the latest class action lawsuit alleging that they were inappropriately adding charges to customers’ transactions without informing them beforehand.
David Abel Vs. Citi
David Abel, the lead plaintiff in the case, argued that Citibank has suddenly replaced its existing policy on how to charge customers’ credit card interest rates whenever they are making transactions via different mobile payments applications.
Abel argued that he found out about the newly-imposed policy when he was surprised that he suddenly got charged more compared to former rates last year.
He shared that he checked his credit card account with Citibank last year to do a routine monthly statement check. However, he was shocked to find out that he was charged with cash advance fees amounting to $10 for each transaction he has made.
In total, he has made five financial transactions using his Citibank MasterCard credit card account via the mobile payment app Venmo.
He divulged that the payment transactions range from payment for music streaming subscription services to wire money transfer – all covered by the company’s terms and conditions presented to their cardholders before they are given their credit card for the first time.
In response to the sudden imposition of fees that were not informed to him, Abel contacted Citibank representatives to refund the charge. Yet, the company didn’t do it.
Sudden Uninformed Change ‘Self-Serving’ Move For Citibank
The recent changes led to him filing the class action suit against the bank. He argued further that the company’s move to suddenly introduce a change on their policy covering credit card users was a ‘self-serving choice’ to collect more fees and interests from cardholders who use their credit card service to send funds to their mobile payment applications.
Oblivious banking customers are then left to deal with towering lists of surprise fees and higher interest rates due to Citibank’s decision.
Abel reported that this move was unprecedented for Citibank as it has always treated and charged credit card payment transactions on payment apps the same as a standard purchase transaction.
However, seemingly wanting to profit more from the increased number of credit card users who use their cards for mobile payments, Citibank introduced the recategorization in 2020 without informing current customers.
The Citibank Mobile Payments Extra Fees Class Action Lawsuit is asking the court to charge the bank of several offenses. They range from the alleged breach of contract between them and their banking clients to transgressions on different state and federal business and lending laws.
Complainant Abel is leading the move to have a Nationwide Class certified by the court that will represent the interests of similarly situated Citibank cardholders all over the country.
Citibank Company Information
Citibank is a financial services business entity under Citigroup. Originally founded in 1812, the company has grown from City Bank of New York, founded by Samuel Osgood.
Headquartered in New York, it has more than two thousand locations spread out in different locations internationally. The company offers a wide range of financial products and services to its customers, including credit cards and home mortgages, and loans.
Editor’s Note on Citibank Mobile Payments Extra Fees Class Action Lawsuit:
This news feature is reporting on the latest class action filed by a Citibank credit card user after discovering that the company illegally changed its policies concerning transactions made with mobile payment apps without informing customers of the move.
Case Name(s) & No.: David Abel et al. v. Citibank; Case No. 2:21-cv-03889
Jurisdiction: United States District Court Central District of California
Products/Services Involved: Citibank credit card fees
Allegation(s): Citibank suddenly changed its fees and interest rates policies on its credit card mobile payment app transactions for its own gain.
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