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As a
result of the agreement, a total of more than $20 million will
be refunded to Citi customers for overcharges in an
investigation initiated by New York Attorney General Eric
Schneiderman.
In October, CGMI agreed return some $16 million to more than
31,000 customers who paid higher advisory fees than they had
negotiated.
The latest overcharges are set to be announced on Wednesday.
"We are pleased to work with the New York Attorney General on
this matter," a Citigroup spokesman said in an email. "We deeply
regret the inconvenience to our clients, who will be reimbursed
with interest."
Customers did not receive fee rebates they were entitled to when
their accounts were frozen, according to the attorney general's
office.
Accounts can be frozen for a variety of reasons, the office
said, and in some cases, customers should not have been charged
fees. CGMI sometimes rebated the fees when requested, an
internal review found, and procedures weren't in place to
determine when they were appropriate.
As part of the October agreement, CGMI agreed to conduct an
internal review of other types of accounts, which is how the
bank identified the overcharges related to periods of
inactivity.
The New York attorney general began his investigation of CGMI in
2012 after a complaint from a customer in Westchester, New York,
who had negotiated a 1.2 percent fee, but was charged 1.5
percent, costing her more than $3,000 over three years.
(Reporting By Karen Freifeld. Additional reporting by David
Henry. Editing by Soyoung Kim and Alan Crosby)
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