The U.S. consumer financial watchdog said yesterday that it had fined subsidiaries of Citigroup Inc. $28.8 million for giving "the runaround to borrowers" on mortgage servicing by keeping them in the dark about options to avoid foreclosure or making it difficult for them to apply for relief, Reuters reported. CitiMortgage will pay an estimated $17 million to compensate wronged consumers, as well as a civil penalty of $3 million, the Consumer Financial Protection Bureau said. CitiFinancial Services will refund approximately $4.4 million to consumers, and pay a civil penalty of $4.4 million. The CFPB said that the subsidiaries neither admitted nor denied the findings in the consent orders.
