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Judge Approves Citibank HELOC Class Action Settlement
By Mike Holter
A federal judge on Friday granted final approval to a $10.7 million class action lawsuit settlement over claims Citibank improperly cut or suspended homeowners’ home equity lines of credit during the mortgage crisis. Affected Citibank customers will be able to seek reinstatement of their HELOCs and/or receive $120 cash from the class action settlement.
Under the deal, Citibank will restore between $317 million and $654 million in home equity lines of credit and will contact eligible customers about their right to seek reinstatement of their HELOCs if they believe their home’s value has not significantly decreased or if they have significantly paid down their first mortgage. The bank will also change its HELOC suspension and reinstatement policies to “provide borrowers with more realistic opportunities to achieve reinstatement,” according to the settlement.
Class Members who closed their home equity lines of credit following Citibank’s suspension or reduction will receive $120 cash if they submitted a Claim Form by the deadline of January 31, 2013.
Court documents show that out of the 150,000 eligible Citibank customers, only four Class Members objected and 43 opted out of the settlement after initial notices were sent out.
Top Class Actions reported on the Citibank HELOC class action lawsuit settlement in November 2012. If you missed out on the settlement, sign up for our free weekly newsletter or check out our Open Lawsuit Settlements section to see what’s available.
The case is In Re: Citibank HELOC Reduction Litigation, Case No. 9-cv-0350-MMC, U.S. District Court, Northern District of California.
Updated March 18th, 2013
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