Class Action: Citibank Charges as Much as $50 Per Month for Basic Checking Accounts ‘Without Ever Telling Consumers’

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Citibank, N.A. is on the receiving end of a proposed class action in which the plaintiff claims the bank punishes its “most economically vulnerable and cash-strapped” customers by charging more than $12 per month to have a regular checking account.

“Indeed, while Citibank prominently informs consumers the circumstances in which its regular checking account can cost less than $12/month,” the complaint reads, “it never once informs consumers that it will sometimes charge consumers much more than $12/month for basic checking account services.”

The plaintiff says Citibank sometimes charges consumers up to $46 per month for its basic checking account, such as in instances where an individual has insufficient funds in his or her account to pay the monthly account fee. When this occurs, the plaintiff claims, Citibank reportedly charges a $34 overdraft fee “on its own checking account service charges,” in addition to the cost to simply maintain a regular checking account. The issue, the lawsuit argues, is that Citibank allegedly reaps these fees despite providing no service other than what it markets to consumers for $12 per month. 

“There is no justification for these practices, other than to maximize Citibank’s fee revenue,” the complaint scathes. “In order not to violate its express marketing and contractual promise to charge only $12/month for basic checking account services, Citibank could have used its discretion not to charge overdraft fees on its own service fees; or could have deducted its own service fees when consumers’ account had sufficient funds for the $12/month charge. Instead, it charges nearly $50/month for checking account services, without ever telling consumers this was even a possibility.”