Research and Statistics

Citi to refund $330 million in interest charges to cardholders


Citi discovered errors in re-evaluating APRs for millions of cardholders who resumed on-time payments after slipping up

The content on this page is accurate as of the posting date; however, some of our partner offers may have expired. Please review our list of best credit cards, or use our CardMatch™ tool to find cards matched to your needs.

Citi will return $330 million in interest charges to millions of cardholders who resumed on-time payments after missing a due date.

The bank on Friday said it discovered errors in reviewing and re-calculating interest rates for customers who made at least six consecutive on-time payments after a slip-up – a requirement under the CARD Act. The $330 million in refunds will cover 1.75 million card accounts that were affected between 2011 and 2017 – an average of $190 per account.

A provision of the CARD Act allows cardholders who miss payments and get hit with penalty APRs to have their original rates restored after sustained good behavior. Under the rule, the bank must review the possibility of restoring your original APR after you make six consecutive on-time payments under a penalty APR. It only applies when a higher interest rate is imposed because a payment was 60 days late or more, and it doesn’t cover new purchases.

“While we believed our methodology was sound, a periodic internal review identified potential flaws in the methodology used to reevaluate interest rates on some credit card accounts,” Liz Fogarty, head of global consumer banking public affairs, said in a statement. “While we have found no evidence of employee misconduct, we should have identified these issues sooner.”

Fogarty also said about 90 percent of the interest rate savings due to customers under the rule were delivered as required.

Citi gave no specific timeframe for doling out refunds – Fogarty said the bank would move to reimburse affected customers “as quickly as possible.”

See related: Average card APR holds steady at 16.41 percent, Late payments on cards worsen as balances rise, N.Y. Fed says

Editorial Disclaimer

The editorial content on this page is based solely on the objective assessment of our writers and is not driven by advertising dollars. It has not been provided or commissioned by the credit card issuers. However, we may receive compensation when you click on links to products from our partners.

What’s up next?

In Research and Statistics

Most U.S. cardholders carry at least one balance

Most U.S. consumers have both general purpose and private label credit cards, and a majority carry a balance on at least one of their cards, the Consumer Financial Protection Bureau finds.

See more stories
Credit Card Rate Report
Cash Back

Questions or comments?

Contact us

Editorial corrections policies

Learn more