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Citi fined $25.9 million for intentionally discriminating against Armenian Americans
Citi was ordered Wednesday to pay a $25.9 million fine for intentionally discriminating against Armenian American credit card applicants. The Consumer Financial Protection Bureau ordered the fine.
Photo by Ezio Petersen/UPI | License Photo
Nov. 8 (UPI) -- The Consumer Financial Protection Bureau Wednesday ordered Citi to pay a $25.9 million fine Wednesday for intentionally and illegally discriminating against Armenian American credit card applicants.
"The CFPB found that Citi purposefully discriminated against applicants of Armenian descent, primarily based on the spelling of their last name," said CFPB Director Rohit Chopra in a statement. "Citi stereotyped Armenians as prone to crime and fraud. In reality, Citi illegally fabricated documents to cover up its discrimination."
Citi will pay $24.5 million in fines to the CFPB's victims relief fund. It will have to pay an additional $1.4 million directly to affected customers.
According to the CFPB, from at least 2015 through 2021 Citi treated Armenian Americans as criminals who were likely to commit fraud.
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Nov. 8 (UPI) -- The Consumer Financial Protection Bureau Wednesday ordered Citi to pay a $25.9 million fine Wednesday for intentionally and illegally discriminating against Armenian American credit card applicants.
"The CFPB found that Citi purposefully discriminated against applicants of Armenian descent, primarily based on the spelling of their last name," said CFPB Director Rohit Chopra in a statement. "Citi stereotyped Armenians as prone to crime and fraud. In reality, Citi illegally fabricated documents to cover up its discrimination."
Citi will pay $24.5 million in fines to the CFPB's victims relief fund. It will have to pay an additional $1.4 million directly to affected customers.
According to the CFPB, from at least 2015 through 2021 Citi treated Armenian Americans as criminals who were likely to commit fraud.
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"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 CFPB statement said. "The bank specifically targeted surnames ending in "-ian" and "-yan." Nicknamed "Little Armenia," Glendale is home to approximately 15% of the Armenian American population in the U.S."
Denying credit intentionally to entire groups of people based on national origin is illegal
The CFPB said Citi denied credit based on borrower's ancestry and employees were instructed to avoid discussing the illegal discriminatory practice in writing or in recorded phone calls.
Citi also gave borrowers fake reasons for credit denials.
In an example cited by the CFPB, a Citi employee asked for a suggestion on how to cover up the discrimination.
"The response was to decline the credit card application due to suspected credit abuse, which essentially blamed the applicant for the denial," the CFPB statement said.
In 2018 Citi paid $100 million after an investigation by 42 state attorneys general found fraudulent conduct in manipulating a benchmark interest rate called Libor that set global lending rates.
In announcing that settlement the then-New York Attorney General Barbara Underwood said Citi made millions of dollars from the alleged fraudulent conduct.
In 2016 Citi also agreed to pay fines totaling $425 million for attempting to rig benchmark interest rates to resolve claims by the federal Commodities Futures Trading Commission.
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"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 CFPB statement said. "The bank specifically targeted surnames ending in "-ian" and "-yan." Nicknamed "Little Armenia," Glendale is home to approximately 15% of the Armenian American population in the U.S."
Denying credit intentionally to entire groups of people based on national origin is illegal
The CFPB said Citi denied credit based on borrower's ancestry and employees were instructed to avoid discussing the illegal discriminatory practice in writing or in recorded phone calls.
Citi also gave borrowers fake reasons for credit denials.
In an example cited by the CFPB, a Citi employee asked for a suggestion on how to cover up the discrimination.
"The response was to decline the credit card application due to suspected credit abuse, which essentially blamed the applicant for the denial," the CFPB statement said.
In 2018 Citi paid $100 million after an investigation by 42 state attorneys general found fraudulent conduct in manipulating a benchmark interest rate called Libor that set global lending rates.
In announcing that settlement the then-New York Attorney General Barbara Underwood said Citi made millions of dollars from the alleged fraudulent conduct.
In 2016 Citi also agreed to pay fines totaling $425 million for attempting to rig benchmark interest rates to resolve claims by the federal Commodities Futures Trading Commission.
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