Citigroup ordered to pay $700 million to customers and fined $70 million

Citigroup was ordered to pay $700 million (€640 million) to customers and fined $70 million over illegal practices related to the bank's marketing of credit-card add-on products.

The US Consumer Financial Protection Bureau and Office of the Comptroller of the Currency each fined the New York-based bank $35 million, according to statements on Tuesday from the regulators and the bank. Citigroup said it’s fully reserved for the costs associated with the agreement.

“Citi previously discontinued sales of the products included in the agreements, which include credit monitoring and debt-protection products and wallet-protection services,” the lender said in its statement.

Citigroup is the latest bank to be fined over the marketing and sale of credit-card add-on products, such as identity-theft protection. Capital One Financial paid $210 million in penalties and restitution in July 2012 and accepted restrictions on how it markets the products.

- Bloomberg