New SEC whistleblower complaint on Citigroup’s Citigold promotion fiasco

Bank account or service complaints to the Consumer Financial Protection Bureau (CFPB) on Citigroup increased 240% from 598 to 2032 in 2016. During the same timeframe at Wells Fargo, where fraud was found, bank account or service complaints increased 24%, from 2329 to 2885. Keep in mind that Wells Fargo is much larger than Citigroup, worth almost twice as much in market capitalization and with 6,215 branches across the US compared to Citigroup’s 756.

For 1,890 out of the 2032 complaints, the CFPB says the Company has responded to the consumer and the CFPB and chooses not to provide a public response. Without further information it is impossible to tell how much of this is related to Jaludi’s allegation of serious system problems which the O&T division had been hiding from regulators and the business divisions or if there might fraud as was the case with the Wells Fargo 24% increase.

As was the case with Wells Fargo, no lawsuits or class actions will be allowed to proceed in federal court due to Citigroup’s arbitration agreement preventing such actions. Once the new administration is in place and Citigroup lackeys, such as Treasury Secretary Jack Lew are no longer in power, perhaps we’ll see the SEC begin to take action once again regarding Citigroup’s continued unethical behavior.

 

Consumer complaints to the CFPB for the top 4 US banks
2012 2013 2013 % change 2014 2014 % change 2015 2015 % change 2016 2016 % change 2012-2016  change
Bank of America 16049 16459 +3% 10287 -37% 9833 -4% 9397 -4% -41%
Wells Fargo & Company 9452 11127 +18% 9168 -18% 9282 +1% 10676 +15% +13%
JPMorgan Chase & Co. 7289 7990 +10% 7735 -3% 7968 +3% 8397 +5% +15%
Citibank 5433 5878 +8% 5768 -2% 6202 +8% 8402 +35% +55%

 

 

2015 Detail 2016 Detail % change
Wells Fargo & Company 9282 10676 15%
Bank account or service 2329 2885 24%
Consumer Loan 496 615 24%
Credit card 709 974 37%
Credit reporting 22 19 -14%
Debt collection 277 362 31%
Money transfers 47 61 30%
Mortgage 5101 5418 6%
Other financial service 17 22 29%
Payday loan 8 8 0%
Prepaid card 7 17 143%
Student loan 269 295 10%
Bank of America 9833 9397 -4%
Bank account or service 2925 3103 6%
Consumer Loan 144 132 -8%
Credit card 1645 1713 4%
Debt collection 382 475 24%
Money transfers 76 56 -26%
Mortgage 4585 3848 -16%
Other financial service 32 26 -19%
Payday loan 7 5 -29%
Prepaid card 17 16 -6%
Student loan 13 23 77%
Citibank 6202 8402 35%
Bank account or service 598 2032 240%
Consumer Loan 252 91 -64%
Credit card 2986 4253 42%
Credit reporting 33 17 -48%
Debt collection 748 691 -8%
Money transfers 22 28 27%
Mortgage 1387 1115 -20%
Other financial service 10 16 60%
Payday loan 4 6 50%
Prepaid card 78 75 -4%
Student loan 84 78 -7%
JPMorgan Chase & Co. 7968 8397 5%
Bank account or service 2006 2453 22%
Consumer Loan 213 266 25%
Credit card 1902 2377 25%
Credit reporting 25 25 0%
Debt collection 457 493 8%
Money transfers 56 54 -4%
Mortgage 3144 2606 -17%
Other financial service 19 21 11%
Payday loan 1 4 300%
Prepaid card 15 8 -47%
Student loan 130 90 -31%

 

Good visual of complaint trends:

http://badfinance.org/review/2078676/citibank-bank-account-or-service

 

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