Citigroup Citi Bank issued $335 million to 1.75 million credit card holders in the USA, as there was a change in annual interest on credit card bills.
The annual interest rates of credit card bills were calculated wrongly and as a result, 1.75 million credit card users charged high-interest rates.
The bank officials found that the formula used for annual percentage rates were calculated wrongly for the credit card customers.
Citigroup announced the issue on last Friday and said that they will investigate the issue and they’ll refund amount to the affected customers.
The bank reviewed the credit card accounts to find the eligible accounts for high interest-rate reduction. Potential flaws were identified after a periodic internal review to reevaluate interest rates on credit card accounts.
According to Bloomberg report, 1.75 million will be benefitted with $190 refund for each account. Credit Card Accountability, Responsibility, and Disclosure act of 2009 lenders reviews APR rates of customers with good behavior to issue potential rate reduction.
Citi group gave $3 billion in savings from 2011 to 2017 under this law.