Class Action Lawsuit Against Citibank – Perpetual Debt Collection

A Lawsuit Against Citibank can result in huge financial losses for the bank and, if merited, a massive monetary settlement. On October 7, 2021, a Lawsuit was filed in Federal District Court in New York against Citibank.

The complaint names Citibank, N.A., and CitiMortgage, Inc. (collectively, Citi). The complaint further alleges that defendants Citibank, N.A., and Citi misrepresented to borrowers that they qualified for federal flood insurance policies when in fact they did not. These allegations are amongst the first brought against the bank by an array of plaintiffs.

Lawsuit Against Citibank

As reported previously, there is currently a class action lawsuit against Citibank pending in the Southern District of New York. In this suit, a class of current and former homeowners claims that they were misinformed about their mortgage options and received inaccurate premium quotes when applying for mortgages.

The plaintiffs argue that the banks violated both the Fair Debt Collections Act and the Fair Credit Reporting Act when they failed to provide these consumers with accurate information.

The plaintiffs further claim that the banks violated the FDCPA when they failed to provide notice that they would be monitoring the homeowners’ mortgage files and used unfair collection practices such as aggressive phone calls and intimidating letters.

The lawsuit further claims that Citibank and other mortgage lenders engage in unlawful and deceptive practices including, but not limited to, routinely violating the terms of their loan agreements, regularly charging borrowers unreasonable fees, and failure to provide timely notice of their plans to foreclose on the homeowners’ homes.

Citibank engages in a range of abusive and wrongful conduct and has been found to have engaged in the same conduct in the past as well as in the present.

Plaintiffs have filed a number of class action lawsuits against Citibank as well as several other financial institutions, including PNC Bank, Wachovia Bank, and State National Bank.

These lawsuits allege that Citibank repeatedly violates the federal Truth in Lending Act, the Fair Debt Collection Practices Act, the Fair Credit Billing Act, the Fair Trade Act, and other federal and state laws.

A class action lawsuit against Citibank can be filed by any person or group consisting of three or more individuals who each suffer a direct, personal injury resulting from the violation of the DCRA or any other statute.

Citibank engages in the following abusive and wrongful conduct:

Relying on the inadequate documentation provided by the borrowers; failing to provide the required information on the basis of which the rates were calculated; failing to provide any explanation for their calculated rates; failing to provide the required monthly credit report document to the borrower; failing to respond to requests for review or update on the status of the complaint and claims; failing to provide any response to the complaint within 30 days of the date on which the complaint was filed; and failing to respond to any requests for review or update on the status of the complaint and claims.

Citibank has also been sued in state court for violating the federal litigation updates. A suit was filed against Citibank in state court by the Florida Department of Law. The case was filed on behalf of the State of Florida and was resolved in favor of Citibank.

There is yet another class-action lawsuit against Citibank.

This lawsuit is brought on behalf of the members of the Florida Redevelopment Commission (FRC) who have suffered loss due to the violations committed by Citibank when they submitted the FRC’s mandatory flood insurance rate application. Citibank was instructed by FRC to submit the rate application in line with the requirements and guidelines stipulated by the Florida Redevelopment Commission.

FRC did not inform Citibank that the submission of the rate application by itself would result in the rejection of the rate request. Citibank agents were in fact instructed to disregard the requirements of the Redevelopment Commission and to submit the rate request in line with the requirements and discounts offered by other companies.

Citibank was hit with a number of lawsuits relating to its debt collection practices and the illegal marketing of its mortgage refinancing product.

Citibank has settled the lawsuits related to its improper credit mortgage underwriting practices at least for the present time. Other than this the company has already paid the State of Maryland and has agreed to settle the lawsuits brought against it by the Federal Attorney General.