Unfair Treatment Alleged at Citibank A recent report by a US federal regulator has brought to light allegations that Citibank discriminated against Armenian American customers, triggering concerns about ethnic bias in financial institutions.
Discrimination Based on Surnames The Consumer Financial Protection Bureau (CFPB) alleges that from 2015 to 2021, Citibank unfairly scrutinized credit card applications from individuals with Armenian surnames, often denying them services or flagging them for fraud.
Targeted Areas and Practices The allegations highlight Citibank’s practices in areas with significant Armenian populations, such as Glendale, California. Applicants with last names ending in “-ian” or “-yan” were subjected to stricter evaluation criteria.
Cover-up Attempts by Citibank The CFPB accuses Citibank of falsifying documents and providing misleading information to hide discriminatory actions. This revelation raises serious questions about the bank’s commitment to fair consumer practices.
Citibank Responds to Allegations Citibank spokesperson Karen Kearns has expressed regret over the situation, attributing the behavior to a small group of employees bypassing fraud protocols. The bank has taken steps to prevent future occurrences and issued apologies to affected applicants.
Regulators Demand Accountability With a $25.9 million penalty imposed by the CFPB, Citibank is being held accountable for its actions. The fine includes a significant contribution to the victims’ relief fund, signaling a strong stance against discrimination in the banking sector.
Implications for the Banking Industry As the incident with Citibank unfolds, consumer advocates and legislators call for greater accountability and oversight in the financial industry, ensuring that discriminatory practices are eradicated and all customers are treated fairly.