Daily Management Review

Citigroup to pay $25.9M for discriminating against Armenian Americans


Citigroup Inc., a US bank, will be fined and compensated $25.9 million for discriminating against Armenian Americans when issuing credit cards.

Matt Buck
Matt Buck
Citi declined to provide credit cards to Armenian-Americans between 2015 and 2021, according to the Consumer Financial Protection Bureau (CFPB). Citi refused credit cards to applicants who were identified as Armenian Americans by bank staff based on their surnames.

"The CFPB found that Citi intentionally discriminated against applicants of Armenian descent based primarily on the pronunciation of their last names," said Rohit Chopra, director of the bureau. - Armenians were categorized by the bank as being prone to crime and fraud. Citi, in fact, illegally created records to conceal discrimination."

According to the CFPB, Citi management directed employees not to mention these practices in writing or over recorded phone calls.

"Citi employees lied about the basis for refusing to issue cards to applicants, providing fictitious reasons," the Federal Trade Commission stated.

According to the CFPB's order, Citi must allocate $1.4 million to compensate Americans who have experienced discrimination, and pay a $24.5 million punishment.

source: cnn.com