Citibank accused of being naughty

[bambbbam2]

From
Techdirt: Citibank Had A Program To Take Money From Customers?

"A few years back, that I accidentally added an extra zero to a bill I paid for phone service. The company automatically credited the account, and a quick call got them to send a check with the overpaid amount. I know others who have accidentally paid a bill twice, or simply overpaid a bill because they didn't have the exact amount of the bill handy and wasn't able to look up the specifics. In most cases, the companies in question would just credit the difference.

However, it turns out that Citibank had a different idea. It apparently decided that if you overpaid a bill, you really were just donating free money to Citibank executives' bonus fund. The company actually had a "sweeping" software that would scan customer accounts for a positive credit and simply wipe it off their account, transferring the money to Citibank's general account.

This wasn't just a small thing either -- it went on for more than a decade, and the whistleblower who brought it up was fired. And, if you thought I was joking about the executive bonus fund, an executive from Citibank told investigators: "the sweep program could not be stopped because it would reduce the executive bonus pool."

Of course, now the state of California has "convinced" Citibank to pay back all that money, plus some interest."

[oz_mark]

Says something about the attitude od senior management in Citibank:

In the words of a Citibank executive, “Stealing from our customers is a business decision, not a legal decision.” The same executive later said that the sweep program could not be stopped because it would reduce the executive bonus pool.

[Mal]

Hmmm. Looks like they targetted it at a certain class of account:

News & Alerts - California Dept. of Justice - Office of the Attorney General

The credit sweeps targeted more than 53,000 customers nationwide. All of the affected accounts were in a recovery status, which includes accounts of customers who have died, sought bankruptcy protection, or been the target of litigation or other collection efforts by Citibank.

Also love the title on the Attorney General's release: "Investigation Reveals Bank Was Stealing From Its Customers"

[JohnK]

This type of behaviour is not limited to Citibank or financial isntitutions only. Sometimes it is best not to work in any questionable industry....

[NYCguy]

Sometimes it is best not to work in any questionable industry....

... Or keep your mouth shut?

[FL360]

I think I have read this story before, as a Citibank Gold visa card holder (fee free for life of course). I think I have read this somewhere from their T&C that if you have a credit balance in your card account for a period of X they then will open a banking account and chuck your money there, that account will probably have high monthly fee and the balance will then be gone in no time.

I have also notice one of their "doggy" practice, the due day for the account seems always on a Monday, so if you pay the $$$ at the Friday before or later you most likely you won't paid on time, and all hell (or profit for them) break lose.

I rigorously manage my finances (and my travel plans), so I have never been charged interest.....

[straitman]

Sometimes it is best not to work in any questionable industry....

JohnK,

The issue is then to find one that you consider appropriate.

[JohnK]

The issue is then to find one that you consider appropriate.

I am a bit too old to consider working only for appropriate companies. First priority is money...