CitiFinancial Servicing, LLC (DE), CitiFinancial Company (DE), CitiFinancial Services, Inc. (MN), and CitiFinancial, Inc. (WV)
The Consumer Financial Protection Bureau (CFPB) took separate actions
against CitiFinancial Servicing and CitiMortgage, Inc. for giving the runaround
to struggling homeowners seeking options to save their homes. The mortgage
servicers kept borrowers in the dark about options to avoid foreclosure or
burdened them with excessive paperwork demands in applying for foreclosure
relief. The CFPB is requiring CitiMortgage to pay an estimated $17 million to
compensate wronged consumers, and pay a civil penalty of $3 million; and
requiring CitiFinancial Services to refund approximately $4.4 million to
consumers, and pay a civil penalty of $4.4 million.