Citi discrimination overview:
- Who: The Consumer Financial Protection Bureau (CFPB) has fined Citi $26 million for discrimination in awarding credit to Armenian Americans.
- Why: Citi denied credit cards to consumers based on the basis of having Armenian last names or living in Glendale, California, which is nicknamed “Little Armenia.”
- Where: The Citi Armenian discrimination fine was announced by the CFPB’s Washington, D.C., office.
The Consumer Financial Protection Bureau (CFPB) has issued Citi a $26 million fine for discrimination in awarding credit to Armenian Americans.
Citi discriminated against credit applicants based on having Armenian last names that ended in “-ian” and “-yan” and also discriminated against those who live in Glendale, California, a town nicknamed “Little Armenia,” according to the CFPB.
“Citi often rejected these applicants outright,” CFPB Director Rohit Chopra said. “When Citi did not, the bank subjected those who may be of Armenian descent to additional scrutiny. The internal message to Citi employees was clear: root out Armenian-American applicants.”
Citi discriminated intentionally and supervisors conspired to hide the actions by telling employees not to discuss the discriminatory practices in writing or on recorded phone lines. The employees were asked to lie to applicants about the reasons they were denied credit, providing them with false reasoning.
Citi will pay $1.4M to harmed customers and $24.5M to CFPB’s victims relief fund, order says
Citi was ordered to pay $1.4 million to the harmed consumers and then pay a $24.5 million penalty within 10 days of the order for the Armenian discrimination. The $24.5 million Citi fine will go to the CFPB’s victims relief fund.
“We have also ordered Citi to clean up its broken business practices that allowed this type of lawbreaking to occur,” Chopra said. “The CFPB’s order is not a suggestion.”
Instead, the Citi fine for its Armenian discrimination is meant as a deterrent to both Citi and any other credit company that could potentially discriminate based on a person’s descent.
In some cases, Citi was found to have required more financial documentation from applicants who are Armenian and, in other cases, blocks were put on the accounts of those who are Armenian.
Citibank was also accused of forcing military servicemembers and veterans into debt traps by hitting them with huge interest rate hikes when they return from service, in violation of the law, a 2022 class action lawsuit alleged.
Have you been denied a credit card and didn’t understand why? Let us know in the comments.
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29 thoughts onCiti to pay $26M fine for Armenian credit card applicant discrimination
That’s a darn shame. I am Armenian, although I don’t have an Armenian last name because the ethnicity comes from my maternal side. My mother has a last name that ends in -ian as do most of my relatives on my maternal side. We have family members living in the Glendale area although I don’t believe any of them are eligible for this suit. Also – PEOPLE! Stop trying to say “add me” for a suit that you CLEARLY aren’t eligible for. When you have a straight American last name and are saying “add me” for a suit that requires you to have an Armenian last name and live in a certain area, it’s obvious you’re trying to commit fraud by claiming something you aren’t qualified for. It’s illegal and takes away money from the people who actually are entitled to the funds. Find another suit that you’re actually eligible for. This one isn’t it.
Add me please they did it twice to me
Did you read the article? What did they do twice to you? You don’t even have an Armenian last name and I can almost guarantee that you don’t live in Glendale CA. That’s fraud, you know.
Add me
Briscoe isn’t a very Armenian last name. If you read the article you’d know that you have to have one of those to be eligible for the suit. Even if you had one you wouldn’t get very far by saying “add me” in the comment section here. I swear, people need to go back to school or something. The lack of intellect is offensive.
Add me
Where’s your Armenian last name? Did you even read the article?
Please add me.
Add me
I love Citibank. This is my most favorite bank after Navy Federal. This bank was there for me in my darkest times. I have never abused their trust and they responded in kind. God bless Citi Bank and all working there!
Add me, got denied several times, without a reason.
Well it sure isn’t because of your Armenian last name since you don’t have one of those. Did you even read the article? Not only can you not get added to a lawsuit by saying “add me” in the comments, but you’re not even entitled to the money. If you read the article you might have been able to figure that out.
I got denied and still don’t know why
You don’t even have an Armenian last name. Did you even read the article?
Add me