Citigroup pays $215m to settle loan charges.

Financial News, September, 2002

Citigroup Thursday agreed to pay $215m ([euro]218m) to settle charges of engaging in deceptive and abusive lending from the US Federal Trade Commission (FTC).The deal struck between the two sides is the largest consumer protection settlement in the FTC's history and, combined with a California class action, could provide up to $240m in redress to consumers across the US. The settlement still requires approval by Atlanta's federal district court.

In March 2001 the FTC launched legal action against Associates First Capital, taken over by Citigroup in November 2000, and successor companies, alleging that consumers had been induced to refinance debts into home loans with high interest rates and fees, and to purchase expensive credit insurance.