United States Trustee and Citigroup Settle

Written by: Robert DeMarco
The Office of the United States Trustee [“UST”] announced, on Monday, July 15, 2013, the unsealing of a settlement with Citigroup Inc. [“Citi”].  The settlement, approved by the U.S. Bankruptcy Court for the Southern District of New York on March 13, 2012, seeks to protect the personal information of nearly 150,000 consumers in 85 jurisdictions around the country. The settlement is filed in In re Matter of Citi Replacement Filings, No. 11-00405 (Bankr. S.D.N.Y.).  In so doing, the settlement agreement was sealed to prevent potential wrongdoers from learning of the breach and looking to victimize the affected Citi customers.  On July 11, 2013, the bankruptcy court granted the parties’ motion to unseal the proceedings.
Clifford J. White, III, Director of the Executive Office for the U.S. Trustees, in the July 15, 2013 press release, explained that “[u]nder this unprecedented settlement, nearly 150,000 consumers whose personal information was placed at risk through no fault of their own have received notice of the improper disclosure and can further protect their information through free credit monitoring.” He then continued, explaining “[c]reditors in bankruptcy cases have a legal duty to protect certain personal information of their customers [and this] settlement should remind all major financial institutions and other creditors that violations cannot be tolerated.”
The salient terms of the settlement agreement require Citi to:

1) redact proofs of claim filed in bankruptcy cases nationwide in which the personal information of consumer debtors and third parties, including Social Security numbers and birthdates, had not been properly redacted as required by the bankruptcy rules;
2) notify all affected consumers and offer them one year of free credit monitoring; and
3)  Agree to the appointment of an independent auditor in order to review and monitor the accuracy of the correction process.

Consumer debtors who believe they were affected may contact Citigroup Customer Service at 1-866-613-5636.  If you are interested in reviewing a complete copy of the UST’s settlement agreement with Citi, click here.
If you are facing financial challenges with Citi or other credit card lenders and/or mortgage holders, bankruptcy may be a viable option, and the lawyers at DeMarco•Mitchell, PLLC, are here for you. Feel free to call or email us for a free initial consultation to discuss your financial condition and how we can help.
DATED:  July 17, 2013