One can’t merely say Citibank credit card lawsuit without being vague.  That’s because over the years Citibank has been involved in more than a few credit card lawsuits.  The latest Citibank credit card lawsuit is in final phases and has reached settlement  with a $10 million settlement fund.  This time it’s over raising interest rates on its credit card customers without properly informing them.

Citibank credit card owners who had a delinquency or default between May 2002 and May 2010 probably had interest rates on the account go sky high.  All credit card companies love to do this, but they must be reigned in by federal banking laws that protect consumers from unfair practices.  One such law is that credit card companies must inform their customers about increases in interest rates.  The Citibank credit card lawsuit was over this matter.  The suit alleged that Citibank didn’t inform those customers during that eight year period.  Well the Citibank credit card lawsuit went to settlement and now plaintiffs can join and get up to $18.

Bank of America Credit Card LawsuitBank of America has been sued in a credit card lawsuit that says it broke the law in its debt collection practices.  The bank allegedly forced its credit card customers into arbitration when they got behind in their payments.  The use of mandatory arbitration for delinquent consumer credit cards was halted in 2009, a year after this Bank of America credit card lawsuit was filed, more than three years ago.

The bank has settled the credit card lawsuit, stating it wished to move on from this old issue and rid itself of the financial uncertainty it posed the publicly traded company.  The suit claimed the arbitration process was unfair to the consumers, or credit card holders.  Data shows that the arbitration program used by Bank of America favored the Bank in all but 30 cases, out of 18,000.  That’s two-tenths of one percent.  Any arbitration program used in credit card lawsuits is supposed to be as fair as any judicial court.

In this case, the subsidiary of Bank of America, FIA Card Services out of Minnesota, was less a judicial system and more of a debt collection agency.

Mandatory arbitration in credit card lawsuits is supposed to prevent consumer credit card holders from pursuing legal action in the court system. Tax Return Status Tax Deadline Tax Bracket
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