8/19/2019 Altered Affidavits

1/2

Altered Affidavits | CONSUMER FINANCIAL PROTECTION BUREAU ORDERS CITIBANKTO PROVIDE RELIEF TO CONSUMERS FOR ILLEGAL DEBT SALES AND COLLECTIONPRACTICES  Posted on23 February 2016.

 

FOR IMMEDIATE RELEASEFebruary 23, 2016CONTACT Office of Communications Tel: (202 !3"#$1$0CONSUMER FINANCIAL PROTECTION BUREAU ORDERS CITIBANK TO PROVIDE RELIEF TOCONSUMERS FOR ILLEGAL DEBT SALES AND COLLECTION PRACTICESCitiban% &old Credit Card 'ebt it) *nflated *nterest +ates 'ebt Collectors for Citiban% -ltered -ffidaits!as"i#$t%#& D'C' /T)e Consumer Financial Protection ureau today too% to searate actions aainstCitiban% for illeal debt sales and debt collection ractices. *n t)e first action, t)e CFP ordered Citiban%to roide nearly " million in consumer relief and ay a 3 million enalty for sellin credit card debt it)inflated interest rates and for failin to forard consumer ayments romtly to debt buyers. T)e secondaction is aainst bot) Citiban% and to debt collection la firms it used t)at falsified court documents filedin debt collection cases in 4e 5ersey state courts. T)e CFP ordered Citiban% and t)e la firms tocomly it) a court order t)at Citiban% refund 11 million to consumers and foro collectin about 3!million from nearly $,000 consumers.Citiban% sent inaccurate information to buyers )en it sold off credit card debt and it also used la firmst)at altered court documents,7 said CFP 'irector +ic)ard Cordray. Today8s action roides redress to

consumers )o ere ictimi9ed by slis)od ractices as art of our onoin or% to fi)t abuses in t)edebt collection mar%et.7Citiban%, 4.-., is a national ban% it) )eaduarters in 4e ;or%, 4.;., t)at issues consumer creditcards. From 2010 to 2013, Citiban% sold ortfolios of c)ared#off credit card accounts. *t tyically roideddebt buyers it) information about t)e consumer and t)e debt, includin t)e suosed annual ercentaerate (-P+. - c)ared#off7 account is one t)e ban% deems unli%ely to be reaid, but may sell to a debtbuyer, usually for a fraction of face alue. T)e debt buyer t)en can try to collect on t)ose accounts.Ille$al De(t Sales Pra)ti)esCitiban% bro%e t)e la )en, from February 2010 until 5une 2013, it roided inaccurate and inflated -P+information for almost 130,000 credit card accounts it sold to debt buyers. T)ese buyers t)en used t)ee

8/19/2019 Altered Affidavits

2/2

t)ey do not oe t)e amount claimed, or if t)e account is it)in 1"0 days of t)e end of t)e statute oflimitations.

• I#)l*de )ertai# +r%te)ti%#s i# de(t sales )%#tra)ts Citiban% must include roisions in itsdebt sales contracts ro)ibitin t)e debt buyer from resellin t)e debt.

• Pr%vide )%#s*-ers 5it" (asi) i#f%r-ati%# a(%*t t"e de(t =)en it sells a debt, Citiban%must ie consumers information about t)e debt, suc) as t)e name of t)e oriinal creditor, t)e credit

areement, and recent account statements.• Pa, )ivil -%#e, +e#alties Citiban% must ay a 3 million enalty to t)e CFP8s Ciil Penalty

Fund.T"e f*ll te6t %f t"e CFPB7s )%#se#t %rder %# de(t sales is f%*#dat"tt+88files')%#s*-erfi#a#)e'$%v8f8243942:)f+(:)%#se#t;%rder;)iti(a#