CitiGroup Cheats Cardholders Class Says
Ethics
Citibank/Citigroup cheats credit cardholders who buy "CreditShield" unemployment and disability insurance, a class action claims in Federal Court. Plaintiffs say that after they file a claim, the defendant insurance companies make late payments to their accounts, and Citibank charges late fees and finance charges and jacks up the interest rate "even though Citibank's affiliate, Citicorp Insurance Services Inc., is the administrator for the insurance companies and processes the insurance companies' benefit payments."
"The benefits are often paid several months late," the complaint states. "In other months, the insurance company makes several months worth of benefits payments, although never accounting for the late fees already assessed as a result of the belated benefits payments."
Defendants include Citibank, Citigroup, Citicorp Insurance Services, Assurant Inc., and American Security Group.
Plaintiffs are represented by Richard McCune with McCune Wright of Redlands.
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Workers’ Compensation Subrogation of Administrative Fees and Costs
When a worker covered by workers’ compensation makes a claim against a third party, the workers’ compensation insurance retains the right to subrogate against any recovery from that third party for all benefits paid to or on behalf of a claimant injured at work. When subrogating for more than basic medical and indemnity benefits, the Texas workers’ compensation subrogation statute provides that “the net amount recovered by a claimant in a third‑party action shall be used to reimburse the carrier for benefits, including medical benefits that have been paid for the compensable injury.” TX Labor Code § 417.002.
In fact, all 50 states provide for similar subrogation. However, none of them precisely outlines which payments or costs paid by a compensation carrier constitute “compensation” and can be recovered. The result is industry-wide confusion and an ongoing debate and argument with claimants’ attorneys over what can and can’t be included in a carrier’s lien for recovery purposes.
In addition to medical expenses, death benefits, funeral costs and/or indemnity benefits for lost wages and loss of earning capacity resulting from a compensable injury, workers’ compensation insurance carriers also expend considerable dollars for case management costs, medical bill audit fees, rehabilitation benefits, nurse case worker fees, and other similar fees. They also incur other expenses in conjunction with the handling and adjusting of workers’ compensation claims. Workers’ compensation carriers typically assert, of course, that, they are entitled to reimbursement for such expenditures when it recovers its workers’ compensation lien. Injured workers and their attorneys disagree.