More than 15,000 customers of Citgroup subsidiary Citigroup Global Markets, Inc. (CGMI) who were overcharged fees on their investment accounts will receive reimbursements totaling more than $4.5 million, Attorney General Eric T. Schneiderman said Wednesday.
In a release, Schneiderman said customers were overcharged when CGMI failed to rebate customer accounts after periods of inactivity when fees should not have been charged. More than 2,700 New York customers will receive a total of approximately $657,000.
“My office will work with any financial institution that identifies and wants to correct an error that harmed its customers. In this case, Citi”™s cooperation with our investigation will result in $20.5 million being refunded to tens of thousands of Citi customers in New York and elsewhere,” Schneiderman said. “I want to thank Citi for its continued cooperation with our investigation, which has ensured that Citi customers are getting back the money they deserve.”
Schneiderman’s office began an investigation into CGMI in 2012 after a Westchester resident reported fee overcharge issues. The investigation initially found more than 31,000 customers were charged advisory fees ; a wider review identified an additional 15,430 Citi customer accounts that were overcharged fees during frozen periods.
More than $20.5 million will be repaid to more than 46,000 customers, including approximately $2 million to more than 5,600 customers in New York.
The investigation into CGMI is being led by Katherine Milgram, Deputy Chief of the Investor Protection Bureau as well as Assistant Attorney General Dhawal Sharma. Gary Brown, Assistant Attorney General-in-Charge of the Westchester Regional office, is also assisting in the investigation.
