US Bank Fined for Discrimination
The Consumer Financial Protection Bureau (CFPB) has ordered Citibank to pay over a million dollars for mistreating potential customers. The financial giant reportedly violated the Equal Credit Opportunity Act by denying services to people of Armenian descent between 2015 and 2021.
Citi employees received instructions from managers to recognize applicants of Armenian descent and use various means to turn down their applications. The bank gave “fake reasons” for rejecting the applications of Armenian Americans, including blaming the applicant for the denial.
Order to Pay Penalty
As a result, CFPB is ordering Citi to pay $1.4 million to credit card applicants who were rejected due to national origin between January 1st, 2015 and December 31st, 2021, as well as a $24.5 million penalty.
Hot Take
Citibank’s intentional discrimination and denial of services to Armenian American applicants is in direct violation of the Equal Credit Opportunity Act and reflects reprehensible behavior that will result in significant financial penalties. The Consumer Financial Protection Bureau’s enforcement of this issue demonstrates a firm commitment to preventing and penalizing discrimination within the financial industry.
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