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Citi Says Issues Arise With Credit Card Interest Rate Calculations

Citigroup disclosed in a filing with the Securities and Exchange Commission (SEC) on Friday (Feb. 23) that it uncovered “methodological issues” with how it calculates credit card interest rates and will offer “remediation” to those customers impacted by such calculations.

As noted by Reuters, and, in an additional statement from Citigroup, the banking giant — which is the third-largest card lender in the United States in 2016, according to the Nilson Report — disclosed the extent of the impact: 1.75 million accounts have been affected and $335 million is being refunded to consumers.

The company disclosed it “self-reported” the findings to regulators, said Reuters, as pertains to Regulation Z and the CARD Act.

In other news gleaned from the filing, unreserved legal costs in their entirety have been estimated at $1 billion as of the end of 2017, down from the $1.5 billion that had been tallied at the end of the September quarter.

Elsewhere in the filing, and as reported by Reuters, the company disclosed the accounting charge in the fourth quarter stemming from last year’s changes in the tax law stood at $22.6 billion, up from an earlier disclosure of $22 billion.