Another Reason Why People Hate Credit Card Companies « The Washington Independent
Citigroup will have to pay $18 million in fines and refunds to customers across the country for taking money from their accounts without notification, Marketplace reports today. For years, Citigroup employed something called the “Account Sweeping Program,” which is a fancy way of saying the company would keep for itself money that customers overpaid on their bills or were due as refunds for something they bought with their cards. And they would never tell the customers about their little plan. Here’s the worst part, from the Marktplace piece:
California’s attorney general investigated the so-called “account sweeping program” for three years. AG Edmund Brown says the company stole from mostly poor people and the recently deceased.
So Citigroup actually stole money from dead people? How much worse can it get? Every time Congress moves to impose even minimal restrictions on these people, they cry foul and complain they’re getting picked on unfairly. But then they turn around and do things like this. There’s really have no defense here. No shame, either.