Starting this week, Citigroup (C) was planning to charge EZ Checking and Access customers fees of up to $9.50 a month if their combined balances in Citi accounts fell below $1,500. The bank was also planning to charge per-check charges of up to $1 for those who wrote more than 10 checks in a month. But Andrew Cuomo took issue with the way the fees were being rolled out, resulting in a settlement that has suspended the fees temporarily.

The issue was disclosure. In particular, the New York Attorney General didn't believe the bank offered a free checking program long enough before charging such fees, and he wanted better notification. The settlement calls for customers who signed up for one of the free checking accounts between Jan. 1, 2009 and Nov. 5, 2009 to not have to pay fees through the end of the year. The per-check fees will be waived for customers until Jan. 31, 2011, notes the AP. This might be seen as a minor victory for regulators in a much larger war. 

For more:
- here's the article

Related Articles:
Cuomo subpoenas Bank of America directors
Cuomo keeps pressure high on bonus culture
Andrew Cuomo: Bank of America's bete noire