- UK opposition party leader says Google tax behavior 'wrong'
- Microsoft unveils Xbox One with Spielberg, Activision tie-up
- White House threatens veto of bill to bypass Obama on Keystone
- Whole neighborhoods razed by Oklahoma tornado that killed 24 |
- Russia moves closer to jail terms for offending religion
Indonesian woman sues Citibank over husband's death
JAKARTA, April 14 |
JAKARTA, April 14 (Reuters) - An Indonesian woman has filed a civil suit against the local unit of Citigroup after her husband died following questioning by debt collectors over bills run up on a credit card issued by the bank.
Citibank Indonesia is already embroiled in another scandal in the country involving the alleged embezzlement of $2 million from customers by one of its wealth managers.
A Citi spokesman said it was not aware of a civil lawsuit being filed and would be inappropriate to comment.
It has said previously that it was cooperating fully with police to determine if external agency staff had adhered to its code of conduct on debt collection and that it did not believe physical harm was done to the client when he came to the bank's office. [ID:nL3E7F61B3]
Esi Ronaldi is seeking a total 3 trillion rupiah ($347 million) in damages for the death of her husband, Irzen Octa, on March 29, a document filed with the Central Jakarta court showed.
"The husband of the plaintiff was the head of the family of two children, so the acts of the employees and debt collectors of the accused who took his life has caused the loss of a husband and father and a breadwinner to the family," the dossier said.
The filing also said Citibank's method of collecting debts in Indonesia had violated official regulations.
Debt collection agencies are frequently used by banks in Indonesia. The sector is unregulated and debt collectors can be verbally aggressive but physical violence is seldom reported.
The central bank has stopped Citibank Indonesia from recruiting new customers to its premium Citigold service while the alleged embezzlement is being investigated and has asked the bank not to add new credit card customers while police look into the cardholder's death. [ID:nJKB004451]
The U.S. bank is also in hot water elsewhere in Asia, saying in January it would compensate customers at one of its Indian branches after alleged fraud by an employee.[ID:nSGE70E01R]
In December it was fined by regulators in Japan for failing to make the required filings on changes in stock holdings. [ID:nTOE6BG05S] ($1 = 8,656 Rupiah) (Reporting by Rieka Rahadiana; Writing by Olivia Rondonuwu; Editing by Alan Raybould and Lincoln Feast)
- Tweet this
- Share this
- Digg this