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Citibank has been ordered by CFPB to pay $700 million in relief to 8.8 million consumer accounts, plus $35 million in penalties, for engaging in deceptive marketing and illegal credit card practices.

In a consent order announced yesterday, CFPB Director Richard Cordray said it was the 10th action the bureau has taken against a company for illegal practices in the marketing or administration of add-on products and services.

Roughly 7 million consumer accounts were affected by Citibank's deceptive marketing, billing, and administration of debt protection and credit monitoring add-on products, CFPB said. A Citibank subsidiary also deceptively charged expedited payment fees to nearly 1.8 million consumer accounts during collection calls, it said.

The bureau said that from at least 2003 through 2012, Citibank used deceptive marketing practices to enroll consumers in five different debt protection add-on products. According to the order, the bank misrepresented the costs and fees, misrepresented the benefits, omitted information and illegally enrolled some customers.

In addition, the bank engaged in unfair billing and deceptive collection practices, the bureau charged.

The order requires Citibank to repay affected customers, end unfair billing practices, cease illegal practices and pay CFPB $35 million in penalties. CFPB acted in coordination with the Office of the Comptroller of the Currency, which has also assessed a $35 million penalty against Citibank.

The Dodd-Frank Act authorizes CFPB to take action against institutions engaging in unfair, deceptive, or abusive acts and practices. In its July Compliance Monitor, NAFCU chronicled CFPB's UDAAP actions and the complexity of the bureau's approach.