NEW YORK Citibank said Wednesday that it would pay $1.6 million to settle an investigation by the attorneys general of 27 states and Puerto Rico into claims that the telemarketing firms it hired to market credit cards deceived customers into buying fee products and charged items to their credit cards without customers consent.
The Citigroup Inc. unit admitted no guilt, but agreed to change the way telemarketing firms pitch products to its credit card customers. Money from the settlement will be divided among the 27 states and Puerto Rico.
Citibank will review and approve all vendor scripts and marketing materials, prohibit customer charges without the accountholders express authorization, and require disclosure of the identity of the telemarketing company if the script makes reference to the bank.
In a press statement, Citibank said it began more than two years ago to implement many of the same initiatives that are included in this agreement.
