Citibank Accused of Discriminating Against Armenian Americans
Citibank is facing backlash and financial penalties after being accused of illegal discrimination against Armenian American credit card applicants. The Consumer Financial Protection Bureau (CFPB) alleged that Citibank singled out individuals based on their surnames, assuming they were tied to Armenian national origin and treating them unfairly during the application process.
The CFPB found that from 2015 through 2021, Citibank “targeted” retail services credit card applicants associated with Armenian national origin. This included applying more stringent criteria, outright denying applications, placing blocks on accounts, and requesting additional information from suspected Armenian American applicants. Last names ending in “-ian” and “-yan” were specifically singled out, as well as applicants in and around the Glendale, California area, which has a significant Armenian American population.
The allegations suggest a coordinated effort by Citibank to conceal the discriminatory practices, including allegedly falsifying documents. To address the issue, the CFPB has ordered Citibank to pay $25.9 million in fines and consumer redress. This includes a $24.5 million fine to the CFPB’s victims relief fund.
A Citibank spokesperson, Karen Kearns, expressed regret for the situation and emphasized the bank’s commitment to preventing similar incidents from happening in the future. The bank has reportedly taken internal actions against employees involved in the discriminatory practices and has implemented measures to address the issue.
However, critics argue that the financial penalties imposed on Citibank may not be sufficient. Dennis Kelleher, CEO of the financial reform advocacy group Better Markets, called the allegations “stunning” and suggested that individual bankers, including executives and supervisors, should face more significant fines and industry bans.
Politicians have also weighed in on the situation, with Senator Elizabeth Warren criticizing Citibank’s actions as “illegal, outrageous, and just plain wrong.” The only Armenian-Assyrian member of Congress, Rep. Anna Eshoo, also shared her family’s experience with discrimination, expressing support for the CFPB’s actions against Citibank and calling for justice.
The allegations against Citibank have sparked outrage and concern, not only within the Armenian American community but also among consumer protection advocates and policymakers. As the situation unfolds, the financial industry continues to face scrutiny over its practices and oversight of discrimination. Citibank CEO Jane Fraser is scheduled to testify before Congress on December 6th as part of the Senate Banking Committee’s oversight hearing on big banks.