If you had a credit card account with Citibank between May 5, 2002 and May 24, 2010, and your interest rate was increased as a result of a default or delinquency, you could get a payment from a class action settlement.
A proposed class action settlement has been reached in a lawsuit brought against Citibank involving increases to the interest rate on Citibank credit cards due to delinquency or default. (Note: the name of the case is Hoffman v. Citibank (South Dakota), N.A., Civil Action Case No. SACV 06-571 AJG [MLGx]).
Plaintiff Laura Hoffman filed a lawsuit in California against Citibank, alleging that it improperly raised interest rates due to delinquency or default without providing prior notice. Citibank said that cardholders were given notice in their credit card agreements and denied all allegations of wrongdoing and liability.
According to the notice from the Honorable Andrew J. Guilford, United States District Court Judge, the proposed settlement reportedly provides that Citibank will establish a settlement fund of $10 million. The court is scheduled to hold a class action settlement hearing on December 13 to decide whether the settlement should be approved.
Citibank settlement class members may receive a check for the lesser of $18 or an equal share of the settlement fund after payment of settlement costs.
These costs include attorneys’ fees and payment to the plaintiff. Any amounts left over will be paid to charity.
All Citibank credit card customers who had their interest rate increased as a result of a default or delinquency during this eight-year period may be eligible to take part in the settlement. To be entitled to a payment from the settlement fund, you must mail in a claim form by February 11, 2011.
Claim forms are available at http://www.casenosacv06571.com or by writing
to: Hoffman Claim Form Request, PO Box 44007, Jacksonville, FL 32231-4007.
You may download a copy of the Notice of Proposed Class Action Settlement and Hearing at:
Further details of the case can be found here:
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