Citibank will refund $3.3m to nearly 39,500 current and former credit card customers whose credit card accounts were closed with an outstanding credit balance.
The bank will provide refunds for Citibank; Virgin Money; Bank of Queensland; Suncorp and Card Services branded credit cards; and Citibank Ready Credit loan customers, according to the Australian Securities and Investments Commission (ASIC).
The eligible customers of the bank will receive a refund of the credit balance along with the interest. Citibank former customers will receive a bank cheque whereas the current customers will receive a direct credit into their account.
The closed credit card and loan accounts which had more $500 credit balance and were not transacted for seven years (or three years as applicable) have been transferred to Australian Securities and Investments Commission (ASIC).
ASIC deputy chair Peter Kell said: “Customers should be confident that when they close an account, they are refunded any outstanding balance. The customers may be entitled to claim their balance through ASIC’s MoneySmart website which holds unclaimed money from accounts which have been inactive for a certain period.”