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CitiGroup Cheats Cardholders Class Says

•  Ethics     updated  2009/02/09 11:58


Citibank/Citigroup cheats credit cardholders who buy "CreditShield" unemployment and disability insurance, a class action claims in Federal Court. Plaintiffs say that after they file a claim, the defendant insurance companies make late payments to their accounts, and Citibank charges late fees and finance charges and jacks up the interest rate "even though Citibank's affiliate, Citicorp Insurance Services Inc., is the administrator for the insurance companies and processes the insurance companies' benefit payments."
"The benefits are often paid several months late," the complaint states. "In other months, the insurance company makes several months worth of benefits payments, although never accounting for the late fees already assessed as a result of the belated benefits payments."
Defendants include Citibank, Citigroup, Citicorp Insurance Services, Assurant Inc., and American Security Group.
Plaintiffs are represented by Richard McCune with McCune Wright of Redlands.



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