Serving more than 8 million customers through more than 2,400 offices in the United States and Canada, CitiFinancial is the leading community-based consumer lender in North America. As an industry leader and member of Citigroup, CitiFinancial strives to set an example of excellence in the consumer finance industry. This is evident in the way we do business in 48 states and the Commonwealth of Puerto Rico in the United States and in 11 provinces and territories in Canada.
 
Our Continued Commitment
Why is Consumer Finance Necessary?
CitiFinancial Lending Enhancements in the United States
CitiFinancial’s Compliance Practices
 
Our Continued Commitment
Since our founding in the United States in 1912, CitiFinancial has learned that there is no one-size-fits-all approach to helping people manage their money and their debt. CitiFinancial loans offer consumers a chance to improve their quality of life, while also improving their credit. Once a solid credit history is established, the door to opportunity opens much wider.
 
For some customers, a personal loan from CitiFinancial may meet their needs. For others, using some of the equity in their homes as collateral for loans for debt consolidation, college tuition or other important needs may be the best option. Regardless of the product, our employees are expected to follow the CitiFinancial philosophy, "Do the right thing, every time, all the time." That means working with our customers individually to find personalized financial solutions that meet their specific needs.
 
CitiFinancial’s more than 15,000 employees play an active role in the communities where they live and work. Volunteerism and financial support to community-based non-profits through Citigroup Foundation grants are part of the CitiFinancial way of life.
 
Financial education is a natural extension of what CitiFinancial and its parent company, Citigroup, do every day. We support financial education because we believe access to investment products, credit and capital can raise the quality of life for individuals and families and strengthen communities around the world. But capital must be used responsibly and wisely, and good financial information can help people make the most of their money.
 
Each year, CitiFinancial educates thousands of consumers about the types of financing available to them, both through one-on-one discussions in our branches and through work with consumer advocacy organizations. In addition, when making loans or offering optional insurance or other products, we make sure that consumers understand their loan agreements by clearly and prominently displaying the terms of the products in CitiFinancial loan documents and marketing literature, through signage in the branch, and in discussion with applicants and customers.
 
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Why is Consumer Finance Necessary?
The consumer finance industry serves hard-working people, families and individuals in communities across the country. Each year the industry provides billions of dollars of credit to consumers who do not qualify for traditional bank credit. Most consumer finance loans are repaid by the borrowers as agreed. However, borrowers with lower credit scores create more risk for lenders than borrowers with higher credit qualifications and therefore consumer finance loans are often priced higher than traditional bank loans. The effect of appropriate risk pricing and successful loan payoffs is that millions of consumers receive much-needed and fairly priced credit to which they might otherwise not have access.
 
Consumers use the credit provided by consumer finance companies for many worthwhile purposes, including purchasing cars or appliances, paying medical expenses, covering college tuition, making home improvements and consolidating debts. The growth and stability of our communities depends on people’s access to a wide range of financial products, including credit.
 
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CitiFinancial Lending Enhancements in the United States
CitiFinancial has maintained high standards for its consumer lending. However, with our acquisition of The Associates in 2000, we recognized that community groups, consumer advocates, and others were skeptical about our commitment to high standards. As a result, CitiFinancial announced a series of enhancements aimed at striking the right balance between providing access to credit for those who need it most while setting consumer protection standards that lead the industry.
 
Implementation of these initiatives involved a massive effort that has included not just putting new programs and policies into place but also talking to our customers, community groups, elected officials, and regulators to figure out how we can make these initiatives even more effective.
 
We implemented these practices because we recognize that we need to establish trust among our community partners, and to show our commitment to setting the standard for the consumer finance industry.
 
The CitiFinancial Lending Initiatives and Enhancements Include: ^ Back to top
 
CitiFinancial branches in the United States DO NOT engage in the following: ^ Back to top
 
CitiFinancial’s Compliance Practices
CitiFinancial takes compliance with the laws, regulations and policies very seriously and integrates compliance efforts throughout its business practices. When employees begin working at CitiFinancial, each receives initial training and regular updates on compliance policies such as fair lending, business ethics and proper optional credit insurance sales techniques. Highly qualified independent auditors audit the performance of every branch office at least annually. Compliance reviewers also check individual loan files, review customer complaints and regulatory examinations and monitor and analyze testing and monitoring data on a regular basis.
 
Almost all states in the United States license, regulate and examine the consumer finance business. This regulatory process provides meaningful governmental oversight that protects consumers against unscrupulous practices. In addition, an extensive network of federal laws and regulations protects consumers. This includes the Truth in Lending Act, the Home Ownership Equity Protection Act, the Equal Credit Opportunity Act, the Fair Housing Act, the Fair Credit Reporting Act, the USA PATRIOT Act, and the Federal Trade Commission Act. Similar laws, regulations and policies are in effect in Canada.
 
At CitiFinancial, we’re committed to setting an example of excellence in the consumer finance industry. It’s the right thing to do.
 
As of February 2007