Billions of surprises for Citigroup and Bank of America customers

In the United States, a Bank of America client was mistakenly credited $ 2.45 billion just days after Citigroup inadvertently sent $ 900 million to a group of lenders.

Surprise for Citibank and Bank of America customers

Citigroup and Bank of America customers were quite surprised when they looked at their accounts. US multinational investment bank Citibank wants to return $ 900 million in payments to lenders of cosmetics giant Revlon. The bank stated that one employee in the credit operations software did not manually select the correct system options. While some voluntarily sent funds back, the bank embarked on a legal battle with the hedge funds Brigade Capital Management and HPS Investment Partners, which refuse to return payments. They set off the amount as a repayment of Revlon’s entire debt.

Cosmetic giant Revlon took over the cosmetics company Elizabeth Arden in 2016. It has borrowed a total of $ 1.8 billion from many different organizations, including the Brigade Capital Hedge Fund. However, during the coronavirus pandemic, cosmetic brands stopped thriving. In order for Revlon to be able to repay its debts, it has entered into a restructuring agreement with Citibank. And it was during one of the installments that the bank made a historically unique mistake.

A billionaire for one day

A few days after Citibank inadvertently sent $ 900 million to a group of creditors, Bank of America client Blaise Aguirre looked at his account and found that he has $ 2.45 billion.

Aguirre said his first thought was that Bank of America would realize the mistake itself. However, when this did not happen, he contacted his relationship manager and asked him what mysterious money had appeared in the account. Even more interesting, it was only after Bloomberg contacted the bank with this question that the bank realized the mistake and began to correct the problem.

This was not the first mistake in Bank of America that concerned customer accounts. Earlier this month, the lender had a temporary problem that caused some online and mobile banking users to see inaccurate balances.

Unexpected mistakes like these can result in great trouble because banks usually want their money back. Depending on the state, consumers may be prosecuted if they spend money wrongly credited to their account. One Pennsylvania couple faced charges of theft last year after spending $ 120,000 their bank mistakenly deposited into their account.

You might also like: 5 Things to Know Before Investing Into Bitcoin