Citigroup to pay US$28.8m for misleading borrowers

Washington

CITIGROUP Inc agreed to pay US$28.8 million to settle allegations by US regulators that two of the bank's mortgage-servicing units misled borrowers, the Consumer Financial Protection Bureau said.

The company agreed to resolve accusations it failed to inform consumers of options to avoid foreclosure and misled them about the impact of postponing payment deadlines on their ability to pay down debt, the CFPB said on Monday in a statement.