Read Our Reviews
Contact Us
Each time we publish a new article you can receive a notifcation and link. Its the best way to stay up to date with consumer law. Plus, you'll receive our monthly newsletter.
In a recent development, the Consumer Financial Protection Bureau (CFPB) issued an order against Citibank, N.A., demanding the payment of $25.9 million in fines and consumer redress for intentional and illegal discrimination against American citizens, specifically credit card applicants identified as being of Armenian descent. This alleged discriminatory practice spanned from 2015 through 2021, involving singling out applicants based on their surnames suspected to be of Armenian origin.
The CFPB found that Citi purposefully discriminated against applicants of Armenian descent, primarily based on the spelling of their last name. Citi, one of the largest banks in the United States, was implicated in allegedly stereotyping Armenians as prone to crime and fraud. According to the CFPB Order, to cover up its discrimination, Citi supervisors instructed employees not to discuss discriminatory practices in writing or on recorded phone lines, resorting to the fabrication of documents.
The CFPB opined that Citibank targeted retail services credit card applicants with specific surnames associated with Armenian national origin, focusing on Glendale, California, home to approximately 15% of the Armenian American population in the United States.
What is the Equal Credit Opportunity Act? It’s a federal law that prohibits creditors from discriminating against applicants based on factors such as race, color, religion, national origin, sex, marital status, or age.
According to the Department of Justice Civil Rights Division, the Equal Credit Opportunity Act (ECOA) “prohibits creditors from discriminating against credit applicants on the basis of race, color, religion, national origin, sex, marital status, age, because an applicant receives income from a public assistance program, or because an applicant has in good faith exercised any right under the Consumer Credit Protection Act.”
For a comprehensive understanding of your rights in credit transactions, it’s essential to be aware of the Equal Credit Opportunity Act (ECOA).
Under the Consumer Financial Protection Act, the CFPB has taken decisive action against Citi for violating consumer financial protection laws, including the Equal Credit Opportunity Act and its implementing Regulation B. The enforcement action mandates two crucial steps:
Citi is required to pay $1.4 million to affected consumers who applied for a Citi Retail Services Credit Card between January 1, 2015, and December 31, 2021. Individuals identified as having been denied credit cards based on national origin discrimination are eligible for redress.
In addition to the consumer redress, Citi faces a significant penalty. The bank must pay $24.5 million to the CFPB’s victims relief fund.
If you believe you have been a victim of discrimination or unfair credit practices, it’s crucial to consult with a consumer rights lawyer. At The Holland Law Firm, we specialize in protecting individuals from unlawful actions by financial institutions and can guide you through seeking redress.
