Citigroup Subsidiary Fined $1 Million Linked to Overcharge Fees

By Ezequiel Minaya

The office of New York Attorney General Eric Schneiderman said Thursday that a subsidiary of Citigroup will pay a $1 million fine linked to allegations the division overcharged customers more than $22.5 million in account management fees.

New York authorities said that at the conclusion of a four-year investigation they found some 47,000 customers were overcharged by Citigroup Global Markets, Inc. Mr. Schneiderman said that along with the fine, the subsidiary will have to report "fee overcharge issues" to his office for the next three years.

The Citigroup segment began repaying the overcharged fees in 2014, it has revised its policies and has also admitted the findings of investigators, Mr. Schneiderman said in a statement. An agreement was first struck in October of 2014.

A spokesman for Citigroup said the company was happy to have the matter resolved.

Write to Ezequiel Minaya at ezequiel.minaya@wsj.com

(END) Dow Jones Newswires

January 12, 2017 15:52 ET (20:52 GMT)

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