Citibank to Repay $14 Million to Credit Card Customers

Citibank has agreed to pay more than $14 million to 53,000 of its national credit card customers, and $3.5 million to the State of California, as settlement of an outstanding lawsuit.

The suit alleged that the bank used a computer program to sweep customers' accounts of money as payment on their cards, without notifying their customers. This resulted in overpayments. Calfornians lost more than $1.6 million between 1992 and 2003, when this procedure was in place.

A whistleblower, Albert Mellon IV, who worked for Citicorp Credit Source in Kansas City, filed a lawsuit in 2003. He will receive $300,000 as part of the settlement.