YONKERS, N.Y. (CBSNewYork/AP) — A Citigroup unit has reached an agreement with the state of New York to return almost $16 million to more than 31,000 customers across the country who were charged higher advisory fees than they negotiated.
Attorney General Eric Schneiderman said Thursday that customers with so-called TRAK accounts usually pay an advisory services fee ranging from 1 percent to 5 percent. Since the fees are negotiable, many customers were able to get a lower fee than the standard rate.
Schneiderman said a Westchester County resident had complained to his office about her bank account in 2012, and the complaint was investigated. The investigation found that many Citigroup customers were being charged higher rates than they had negotiated and were not aware that they were paying more than they should have been.