Citigroup Can't Dodge Mortgage Overcharge Class Action

Law360, New York (September 24, 2012, 7:16 PM EDT) -- A Connecticut federal judge on Monday allowed breach of contract claims to survive in a putative class action alleging that a Citigroup Inc. unit failed to lower borrowing costs on adjustable-rate mortgages, and then refused to pay back borrowers when the error was discovered.

Judge Warren W. Eginton said that it could be "reasonably inferred" that the borrowers had held up their end of the contract by paying their mortgage payments as required, but that CitiMortgage Inc. did not live up to the contract's terms by...
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