Citizens Financial Group, a bank based in Rhode Island, was accused of unfair business practices in its calculation of overdraft fees for its poorer customers. Instead of processing transactions in the chronological order they were created, the bank elected to process them from largest to smallest. This increased the likeliness and amount of overdraft fees, which are levied when a customer spends more money than he/she has in the bank.Google+
Last Thursday, the federal government and 49 state attorneys general announced that they have come to an agreement with five large mortgage providers over allegations concerning illegal business practices. The five banks (Ally/GMAC, Bank of America, Citi, JPMorgan Chase, and Wells Fargo) were accused of a lack of due diligence when creating and signing documents related to foreclosures. The $25 billion settlement, which guarantees that the case will not go to court, is the largest multistate settlement since the 1998 tobacco industry case. All states except Oklahoma participated.
It is important to note that, though this marks a major victory for those affected by the mortgage crisis, some individual claims may still be eligible to made against the companies. To find out how you or your home mortgage can benefit from this settlement, visit the settlement’s web page.Google+