{"id":3371,"date":"2023-11-09T11:42:56","date_gmt":"2023-11-09T19:42:56","guid":{"rendered":"https:\/\/www.armeniancouncil.org\/ACA\/?p=3371"},"modified":"2023-11-11T00:49:44","modified_gmt":"2023-11-11T08:49:44","slug":"citi-to-pay-25-9-million-for-intentional-illegal-discrimination-against-armenian-americans","status":"publish","type":"post","link":"https:\/\/www.armeniancouncil.org\/ACA\/citi-to-pay-25-9-million-for-intentional-illegal-discrimination-against-armenian-americans\/","title":{"rendered":"Citi to Pay $25.9 Million for Intentional, Illegal Discrimination Against Armenian Americans"},"content":{"rendered":"
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WASHINGTON, D.C.<\/b>\u00a0\u2013 Today, the Consumer Financial Protection Bureau (CFPB) ordered Citi to pay $25.9 million in fines and consumer redress for intentionally and illegally discriminating against credit card applicants the bank identified as Armenian American. From 2015 through 2021, Citi singled out for discrimination applicants for certain credit card products, based on their surnames, whom it suspected of being of Armenian descent. Citi supervisors conspired to hide the discrimination by instructing employees not to discuss the discriminatory practices in writing or on recorded phone lines. Citi employees also lied about the basis of denial, providing false reasons to denied applicants. Under today\u2019s order, Citi will pay $1.4 million to harmed consumers along with a $24.5 million penalty.<\/p>\n

“The CFPB found that Citi purposefully discriminated against applicants of Armenian descent, primarily based on the spelling of their last name,\u201d said CFPB Director Rohit Chopra. “Citi stereotyped Armenians as prone to crime and fraud. In reality, Citi illegally fabricated documents to cover up its discrimination.\u201d<\/p>\n

Citibank, N.A. is a national bank with headquarters in New York City that issues consumer credit cards, including retail services credit cards for companies like Home Depot and Best Buy. Citi\u2019s parent company is Citigroup (NYSE: C), a global financial services holding company. As of June 30, 2023, Citi had $1.7 trillion in total assets \u2013 making it the third-largest bank by asset size in the United States.<\/p>\n

Citi treated Armenian Americans as criminals who were likely to commit fraud. From at least 2015 through 2021, Citi targeted retail services credit card applicants with surnames that Citi employees associated with Armenian national origin as well as applicants in or around Glendale, California. The bank specifically targeted surnames ending in \u201c-ian\u201d and \u201c-yan.\u201d Nicknamed \u201cLittle Armenia,\u201d Glendale is home to approximately 15% of the Armenian American population in the U.S.<\/p>\n

Intentionally denying credit to entire groups of people based on national origin is unlawful. Citi\u2019s actions violated the Equal Credit Opportunity Act. Citi managers trained and directed employees to take part in the bank\u2019s plan to single out Armenian Americans applying for retail services credit cards because of stereotypes Citi projected onto an entire nationality. Specifically, Citi harmed consumers by:<\/p>\n