Oh Citibank, how many ways can you be proven terrible and yet somehow your executives make tons of money. To wit: They managed to somehow even getting into defrauding people by screwing with their airline miles! From the WSJ:
“Bertram Hirsch and Igor Romonav sued Citibank, N.A. (NYSE: C), in a nationwide class action in the Unites States District Court, Southern District of New York, charging that the bank wrongfully reported to the IRS that customers had received income as a result of accepting American Airlines miles reward offers for opening up certain Citibank accounts. United States Federal Judge Deborah A. Batts is presiding over the case. The plaintiffs allege that Citibank failed to disclose that it would report receipt of airline miles to the IRS. In addition, they allege that Citibank failed to disclose they would report the value of the airline miles received at 150% more than the actual value of the airline miles.
Citibank moved to stay the class action and compel arbitration, claiming that plaintiffs entered into a contract with Citibank, when they opened up their accounts, which contained a provision requiring all disputes to go to mandatory binding arbitration if any party so elected, and contained clauses which voided customers’ rights to a jury trial and to participate in a class action.
On March 28, 2013, Judge Batts denied Citibank’s motion to compel, finding that there was no evidence before her to show that there was a meeting of the minds. Citibank appealed Judge Batts’ decision to the Second Circuit Court of Appeals, where the Second Circuit Court requested, among other things, that Judge Batts oversee a trial to determine if the parties entered into a binding arbitration agreement.”
I really hate that I have loans through these jerkweeds, but, unlike them, I still plan to pay off my debts.