New York, NY: A settlement in the Citibank home equity lines of credit (HELOC) class action lawsuit has received tentative approval from a federal judge, potentially resolving claims Citibank committed unlawful home equity lending practices by cutting or suspending homeowners’ lines of credit during the mortgage crisis.
The lawsuit was filed against Citibank in 2009 and is entitled In Re: Citibank HELOC Reduction Litigation. The lawsuit claims borrowers had their Citibank home equity lines of credit suspended or reduced on further to claims that their homes had significantly declined in value when, according to the Plaintiffs, this had not happened. The Plaintiffs claim that this was a thinly-veiled attempt on the part of Citibank, to limit its financial exposure to the collapse of the housing market and rid itself of below-market interest rate loans.
While the total value of the HELOC settlement has not been made public, if approved, eligible class members may receive $120 each, and, in some cases, the opportunity to reinstate their HELOC.
Class Members include all US Citibank customers that held a HELOC between January 1, 2008 and January 1, 2012 and had their Citibank HELOC account suspended or reduced based on a claim by Citibank that the value of their home had experienced a significant decline in value.
Current Citibank HELOC customers do not need to do anything to receive settlement benefits. However, if you are a former Citibank customer and you (1) have closed your HELOC in response to Citibank’s suspension or reduction based upon a significant decline in the value of your home, and (2) paid an early closure release fee to Citibank, then you may submit a Claim Form either using the electronic or paper claim.
The deadline to submit a Claim Form is January 31, 2013. A final Fairness Hearing is set for March 15, 2013.
To download Claim Forms and find out more about the Citibank HELOC Class Action Lawsuit Settlement go to InReHELOCSettlement.com.