New York, NY —
Citigroup Inc. has agreed to allow "free checking" at Citibank to remain free, at least for another year. This comes after a settlement reached with New York Attorney General Andrew Cuomo.
Citibank had planned to start charging monthly fees unless customers maintained a minimum balance. The fees would have affected more than one million customers, but Cuomo says the bank didn't give them enough notice.
"They can change the terms of the deal, but it has to be after people have a reasonable notice that you're changing the terms, especially when they're fundamental terms," Cuomo says.
In a statement, Citibank says it's pleased to have resolved Cuomo's concerns. A spokesman declined to disclose the financial effect of the settlement.