The Consumer Financial Protection Bureau ordered CitiFinancial Servicing and CitiMortgage to pay $28.8 million for giving "the runaround" to cash-strapped homeowners who were facing foreclosure.

"Consumers were kept in the dark about their options or burdened with excessive paperwork," said CFPB Director Richard Cordray, in a release on Monday. "This action will put money back in consumers' pockets and make sure borrowers can get help they need."


The CFPB charged that in 2014, CitiMortgage requested unnecessary documents and forms from some homeowners who were seeking foreclosure relief. Many of these letters requested documents that had already been provided or weren't needed in the application process, according to the CFPB.

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