January 30, 2024 at 11:13AM
New York Attorney General Letitia James sued Citibank for failing to protect customers from hacks and scams, unlawfully denying reimbursement to fraud victims, and exploiting exceptions in regulations. The lawsuit alleges substantial financial losses for New York consumers, citing inadequacies in Citibank’s response to fraudulent activities and mistreatment of victims reporting fraud. AG James seeks restitution, penalties, and disgorgement.
Key takeaways from the meeting notes are as follows:
New York Attorney General Letitia James has sued Citibank for various allegations related to its failure to defend customers against hacks and scams and refusal to reimburse victims after allowing fraudsters to steal millions from their accounts.
The lawsuit alleges that Citibank unlawfully denied reimbursement to fraud victims, in violation of the Electronic Fund Transfer Act (EFTA), and exploited exceptions in the regulations, leading to substantial financial losses for New York consumers.
It is claimed that Citibank’s systems did not effectively react to potential red flags of fraudulent activities, allowing scammers to steal millions from customers’ accounts.
The lawsuit seeks to stop Citibank’s alleged deceptive practices, collect restitution for victims who were denied reimbursement in the last six years, and impose penalties and disgorgement.
Attorney General James has a history of advocating for consumer rights, having previously led a coalition of attorneys general to urge major banks to eliminate overdraft fees.
These takeaways capture the essential points from the meeting notes regarding the lawsuit and associated developments in Citibank’s operations.