Consumer complaint received 2017-08-05
Company: CITIBANK, N.A.
State: CT
Product: Student loan
Sub-product: Private student loan
Issue: Dealing with your lender or servicer
Sub-issue: Need information about your loan balance or loan terms

Complaint:
Dear Citibank/Student Loan Corp : Financial institutions must give their customers - and in some cases their consumers - a " clear and conspicuous '' written notice describing their privacy policies and practices. The Privacy Rule applies to businesses that are " significantly engaged '' in " financial activities '' as described in section 4 ( k ) of the Bank Holding Company Act. IV. DISCLOSURE OF ACCOUNT NUMBERS IS PROHIBITED The GLB Act prohibits financial institutions from sharing account numbers or similar access numbers or codes for marketing purposes. This prohibition applies even when a consumer or customer has not opted-out of the disclosure of NPI concerning her account. The prohibition applies to disclosures of account numbers for an individual 's credit card account, deposit account, or " transaction account '' to any nonaffiliated third party to use in telemarketing, direct mail marketing, or other marketing through electronic mail to any consumer. A " transaction account '' is any account to which a third party may initiate a charge. This provision does not prohibit the sharing of an encrypted account number, if the third party receiving the information has no way to decode it. This prohibition applies to the complete marketing transaction, including posting a charge to an account. However, it does not apply when you disclose an account number to your agent or service provider just to market your own products or services, as long as the party receiving the information ca n't directly initiate charges to the account. The exceptions in sections 313.14 and 313.15 of the Privacy Rule do not apply to the disclosure of account numbers for marketing purposes. For example, you may not obtain your customer 's consent to disclose her account number for marketing purposes.   XXXX   XXXX   XXXX   XXXX   ( terms and conditions ).
Memorandum of law   XXXX   2010 - The Student Loan Corporation announced that it has entered into a memorandum of understanding with plaintiffs ' counsel in connection with putative class action lawsuits filed in the   XXXX   Court for the State of Delaware and the Superior Court of the State of Connecticut in connection with ( i ) the Company 's merger agreement with   XXXX   XXXX   XXXX   and the merger contemplated thereby ; ( ii ) the Company 's agreement with SLM Corporation pursuant to which affiliates of   XXXX   XXXX   will acquire from the Company certain securitized federal student loans and related assets ; and ( iii ) the Company 's agreement with Citibank, N.A., pursuant to which Citibank will acquire from the Company certain federal and private student loans and other assets. Under the terms of the memorandum, The Student Loan Corporation, the other named defendants, and the plaintiffs have agreed to settle the lawsuits, subject to court approval. The Company and the other defendants have agreed to settle the putative class action lawsuits in order to avoid the burden and expense of continued litigation. Pursuant to the terms of the memorandum, subject to the effectiveness of the DFS Merger and certain other customary conditions, including court approval of a final settlement agreement, in consideration for the full settlement and release of all defendants, the amount of {$2.00} cash per share will be distributed by Citibank to those persons who are the Company 's stockholders of record immediately prior to the effective time of the DFS Merger ( excluding Citibank,  XXXX  and their affiliates ). According to the complaint the plaintiff alleges that Student Loan Corp. majority owner Citigroup Inc. 's proposed {$600.00} million sale of the Student Loan Corp. to   XXXX   XXXX   XXXX    shortchanged minority shareholders by valuing shares at less than half SLC 's book value. Citigroup Inc. owns 80 percent of Student Loan Corp. On Friday,   XXXX   XXXX  , 2010, The Student Loan Corporation (   XXXX   :  XXXX  ), announced that The Student Loan Corporation and   XXXX   XXXX   XXXX   have entered into an agreement for   XXXX   XXXX   XXXX   to acquire The Student Loan Corporation , and thereby become the owner of its private student loan business as well as {$4.00} billon of its private student loans. Under the terms of the agreement shareholders of Student Loan Corporation will receive {$30.00} per  XXXX  share they hold. Separately and immediately prior to the transaction,   XXXX   XXXX    will acquire from Student Loan Corp {$28.00} billion of securitized federal student loans and related assets and Citibank will acquire from Student Loan Corporation certain federal and private student loans and other assets totaling {$8.00} billion. The transaction has been approved by the SLC Board of Directors.

Company public response: Company has responded to the consumer and the CFPB and chooses not to provide a public response
Company response to consumer: Closed with explanation