On months that I don't use my CC I always keep a small positive balance so that I still get a statement. It's my money and any bank who stole it would be hearing from me, then the media and the police. How is it that this bank has any customers left?

Lastly, Congress must legislate a bureau that can oversee these banks and
the ethics of their practices to protect the American public.

This is theft and in America theft is punishable under law.

Bear in mind that the executive stated that the money that was stolen went to increasing the executive bonus pool. In other words, the executives kept that stolen money for themselves. The penalties that are going to be repaid to the people who were stolen from will come out of the company's coffers, not the executives. In other words, the executives stole the money and got off scott-free. This punishment isn't even a punishment. The company is going to be the pariah for their blatant thievery.

Chase credit card has done this to me twice. I had a rewards card and after paying off the balance I ended up with a few dollars extra. I didn't use the card anymore and after about three years they took the money and reduced my balance to $0. An automatic magazine subscription made a charge to this card again and I paid off the balance. I ended up with a few cents this time. After only a year they took the balance again. I did send this into the Consumerist several years back when it first happened but didn't pursue it with Chase because it was only a few dollars total. Glad to hear Citibank got caught. Maybe Chase will too soon and I will get my money back.

Why did they stop in 2003? I guess Richard Pryor retired from programming.

Citibank: Um, the 7-Eleven, right? You take a penny from the tray.
California Attorney General: From the crippled children? The poor and deceased?
Citibank: No, that's the credit card jar. I'm talking about the tray, the pennies for our executives.

And I hate to say this, but as much as I would agree with dissolving the company, what happens to all the shares and shareholders? Not all of them are rich ba$tards...

Citibank steals the extra $5 from you, and gives it to their executives. Great business decision.

My first credit card was with MBNA, which, I discovered, would just float positive balances to next month. I was basically giving them a very insignificant interest-free loan until next month when it was applied to the balance.

Sneaky stealing bastards, cancelling my Citi card. People who steal from the poor have no business in my book.

Likely this system waited and if there was no account activity in 3 months it took the money. Let's just say they probably rationalized it this way: we're not a bank, so if you don't spend the money, consider it a cost of doing business.

Years ago, my mom had overpaid $800 on one of her credit cards (MasterCard) and it was practically a legal battle to get her money back from them. They're predatory that way.

If corporations are legal entities similar to people, with rights, etc., which they are, we really need new laws that allow us to "jail" errant corporations. I'm unsure how: suspend their Corporate Charter for [x] period of time? Freeze their ability to pay shareholders for [x] period of time (harsh on the shareholders but BOY would it deliver a smack-down on their share price)... Something like that?

Whatever prompted the decision, the use of the word "stealing" sounds like a confession to criminal activity.

@aerick79: Umm, what? so how long do I have to let my 401k sit before fidelity can pocket it? 50 years? 60 years?

If you own an account, you OWN it. Your debt on that account is money you OWE, and your credits on that account are money you OWN.

Too bad Citibank made money on the deal.

Figure a savings account where they put the stolen money got 5% interest. Contributing 1.4m/yr for 10 years will get you 18.4m.

Subtract the 17.5m they had to pay back, and they got a cool $900,000.

My question is that, how long has the credit has been on the account? It would be Different if the credit has been on there for like 5 years or so. Then its ok to remove and pocket the cash. The cardholder, gets montly statements about the credit.

Wonder if I can push the issue with a copy of this at hand, get my 85¢ back

;-)
:-D

NIce to see little steps in the right direction, though! Go California!

Damn.. Citi Should be made to Pay the APR for Positive Balances on their cards.

Crappy 80's music video, but I think I just found Citibank's coporate theme song:

If only I knew that getting a MBA is like having a monopoly "Get out of jail" free card I might have switched majors.

Citibank steals $14 million from their customers. Their punishment? They have to pay interest.

I agree with henrygates: - corporations that commit serious crimes should be dissolved. A mob of six million shareholders screaming for the heads of the company executives whoese malfeasance made their stocks worthless will most certainly get some of the scumbags put in jail, and will hopefully make some of the others at least think twice.

Sometimes i wonder whether businesses were just more honest decades ago or whether we just never found out about it. Thank god for the internet and places like consumerist.

Isn't this what the RICO laws are for? This is an organized crime conspiracy.

Jail time is warranted.

@doctor_cos: The way I see it, you have two options. 1) Take it, or 2) Get in on the action. Politicians will never stop these corporations, and people are too frightened/pacified to rise up in a massive riot. Sure, you can take your money elsewhere, but how do you know the next company isn't going to pad their pockets at your expense down the road?

Thank God only Citi Bank was doing this!

I wonder how much of this settlement has to do with the fact that Citibank is now the US Government's Official Travel Card (as of 30 November). A lot of people overpay their accounts and run a positive balance on their travel cards since being in default by even $0.01 on your travel card will alert multiple layers of supervisors; especially in the military.

I had a settlement go my way with regards to mortgage protection payments (even the name sounds Mob-worthy) and the bank is repaying my principal plus 8% "simple" interest per annum.

That means my first payment earns 8% per year for the 5 years that have elapsed, my thirteenth earns 8% for 4 years, etc.

I'm still waiting for the bank to confirm my big fat check though.

sound's like superman two

What does the federal gubbamint (OCC) do in cases like these? What does the OCC do PERIOD except stop states from going after banks, as that is the purview of the OCC (to sit by and laugh along with the CEOs).

I find this absolutely disgusting. But I find Chase and BoA even MORE disgusting, so that's the reason I'm not taking all my deposits out.

Wow, I sure wish I could steal money and only get a slap on the wrist for it.

This is disgusting. Why the hell aren't they being sent to prison?

One count of theft for EVERY time they took money from any account.

Isaiah 5:20 "Woe to those who call evil good, and good evil; Who substitute darkness for light and light for darkness; Who substitute bitter for sweet and sweet for bitter!"

The jerks who cooked up that idea should have their testicles forcibly removed using spoons. to think I once almost applied for a job working under under the citi umbrella. glad I decided otherwise.

I wish I had Citicard to cancel right now.

"we stole from our customers for years and all we have to do is pay some of them back, even though its a bit more. Oh woah is us. Here... take my wrist and slap it!"

"Smart would-be thieves should take notice... if you want to illegally steal money from people off the street, establish a major corporation and do your bidding from there. Why? Even if you get caught, you'll just get away with a slap on the wrist! Small fine and maybe a brief media attention. Do it as an individual, you'll face hard time and be stripped of any dignity for life."

The bastards behind this fraud are definitely getting off easy. Hard time AT THEIR EXPENSE (can't let them fraud the public twice!)

@blitzcat: I interpreted that as 10% interest-that is, 10% APY. Not sure if I'm right though.

If I had no morals, and it appears they don't, I'd make this decision many times over. Being able to take millions and only have a small chance of being caught, and even then the repercussions are minor.. yeah, seems like a solid business plan.

Also, the whistle blower should get a payoff from this deal, too.

And the shareholders should sue them for the damages their shares incurred when they got caught.

There is a small glimmer of hope inside me that whomever is elected in November will bring the pain to these big companies that think that they are above the law.I mean, use the full power of the federal government to punish,and I mean really punish these people so that they will think twice before pulling this shit,bonus or no bonus.The penalty here should have been triple damages PLUS interest with no wiggle room. The poor bastard that got fired for blowing the whistle should get some serious coin for being fired. Only when it is more painful to break the law than do the right thing (like it is for us poor schlepps in the real world), will these people do whats fair.

If you ask me, any corporation that is caught stealing or otherwise breaking basic laws should be dissolved. The $17.5 million they just gave up will be factored in to their next thieving business plan.

In the words of a Citibank executive, "Stealing from our customers is a business decision, not a legal decision." The same executive later said that the sweep program could not be stopped because it would reduce the executive bonus pool.

Literally.

And huh, I have a grandmother who has citibank, I'll give her a call and let her know.

@ohiomensch: No. It (probably) goes to the state:

If Defendants do not receive a properly completed form within 60 days of mailing the Contact Letter, then Defendants shall escheat the amount to be refunded to the state of the customer's last known address as reflected in Defendants' records for the account. Defendants shall escheat these funds in accordance with the procedures established by that state's unclaimed property and escheat laws.

"Stealing from our customers is a business decision, not a legal decision." ...the sweep program could not be stopped because it would reduce the executive bonus pool."

Man! I wonder if the "executive" had some tylenol, because his face must be hurting after saying something so criminal. In regards to not admiting wrongdoing, just because the criminal say he sees stars doesn't make it night time.

...

....

facepalm.jpg

Where are the other states' AG's and why aren't they pursuing litigation?

Yes, THAT Jerry Brown.