Lender faces record fine for predatory lending

Friday, Sept. 6, 2002 | 11:09 a.m.

NEW YORK -- Citigroup Inc., the world's biggest financial services company, said it is close to an agreement with the Federal Trade Commission to settle allegations of predatory lending.

The charges stem from the company's November 2000 purchase of Associates First Capital Corp., the largest U.S. consumer finance company, which had been accused of deception and taking advantage of people with poor credit records by charging high interest rates and fees for loans.

The agreement is expected to result in a payment by Citigroup of about $200 million, the Wall Street Journal reported today. That would be the FTC's biggest-ever consumer-protection fine.

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