Reposting as this is now official and has been agreed upon by Citi.
Citi will refund $335 million to U.S. customers who should have had a lower APR. This affects 1.75 million credit card accounts since 2011 and. The issue was caused because the method Citi used to determine APRs didn’t properly account for good behavior such as paying your account on time. The Credit Card Accountability Responsibility and Disclosure (CARD) Act of 2009 requires card issuers to review accounts who have had their APR raised to see (penalty APR) if they should be eligible for a reduction due to good behavior.
This error accounted to 10% of interest rate reductions customers were due with 90% being properly calculated. Citi has stated that checks will be sent out to affected customers in the second quarter of 2018. Hopefully most readers of this site won’t be affected as you never want to be paying the high interest rates card issuers charge anyway. Citi having an IT issue doesn’t exactly surprise me either.
