Moving fast to quell legal problems inherited with its purchase of Associates First Capital Corp., Citigroup Inc. this week settled a class action against the subprime lender by agreeing to pay borrowers up to $9 million.

Citigroup will refund roughly 2,000 borrowers in Georgia who were sold single-premium credit life insurance with a loan from an Associates subsidiary, said Howard D. Rothbloom, the plaintiffs’ lawyer. The settlement is Citi’s second announced in less than a week involving Associates First. The U.S. Justice Department said on Monday that Citi’s Associates National Bank in Wilmington, Del., had agreed to pay $1.5 million to settle a fair-lending suit.

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