U.S. Court of Appeals for the 9th Circuit Affirms NPR Settlement of Citibank (S.D.) N.A. Credit Card Fraud Class Action
December 8, 2002
In the late 1990’s, several major banks were looking for ways to increase revenue through their credit card divisions. One way the banks reached this goal was to become highly aggressive in the way that late charges were imposed for credit card payments. The practices of these banks made national headlines in 1998.
As a result of these unlawful practices, the Nix Law Firm helped consumers bring a national class action against Citibank (South Dakota) N.A. regarding unlawful credit card charges in federal court in Marshall, Texas and Los Angeles, California. This litigation resulted in a national class action settlement valued at over $100 million. Final approval of this settlement was ordered in federal court in Los Angeles, California. This settlement resulted in the recovery of millions of dollars for consumers. Even more importantly, as part of the settlement, Citibank changed the way it processes payments and imposed late fee penalties for the benefit of its customers. The United States Court of Appeals for the Ninth Circuit recently affirmed this settlement and the court’s award of attorneys fees in a unanimous decision.
Read the Ninth Circuit’s Opinion affirming the Citibank class action.