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
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Citibank closed 4 accounts of mine without any warning. My payments were on time and one account was paid off. Please
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Add me please. I know I need to be included in this.
I have citi, they also denied me!! They on top charged me enormously fees!!! Trying to get rid of citi! They are terrible and unorganized!!!!
I was denied credit twice!
I was denied so many times with no reason. Now, i know why…