NEW YORK (Reuters) - Citigroup Inc (C.N) said on Friday that it had found problems with how it figures credit card interest rates and that it will provide “remediation” to affected customers.
The disclosure of what Citigroup called “methodological issues” came in an annual filing with the U.S. Securities and Exchange Commission and did not say how much money or how many accounts were involved. Citigroup said it “self-reported the issues” to regulators.
A Citigroup spokesman did not immediately have further comment.
The disclosure said the issues involved provisions of the U.S. law known as the CARD Act and Regulation Z.
Citigroup was the third biggest U.S. card lender in 2016, according to the Nilson Report.
The company estimated its possible unreserved legal costs at $1 billion at year-end, down from $1.5 billion at the end of September.
Citigroup also said in the filing that its accounting charge in the fourth quarter for changes in federal tax law was $22.6 billion, up from the $22 billion it originally announced.
Reporting by David Henry in New York; Editing by Chizu Nomiyama and Frances Kerry