Please ensure Javascript is enabled for purposes of website accessibility
Citigroup Discriminated Against Armenian Americans, Federal Regulator Says
By admin
Published 2 years ago on
November 8, 2023

Share

Getting your Trinity Audio player ready...

NEW YORK — Citigroup intentionally discriminated against Armenian Americans when they applied for credit cards, the Consumer Financial Protection Bureau said Wednesday.

The bureau said some bank employees argued internally that Armenian Americans were more likely to commit fraud and referred to applicants as “bad guys” or as affiliated with organized crime.

The CFPB found that Citi employees were trained to avoid approving applications with last names ending in “yan” or “ian” — the most common suffix to Armenian last names — as well applications that originated in Glendale, California, where a significant portion of the country’s Armenian-American population lives.

As part of the order, Citi will pay $24.5 million in fines as well as $1.4 million in remedies to impacted customers.

The Origins of the Case

The origins of the case come as a result of some organized crime syndicates operating in Southern California that involve Armenian Americans. The leaders of the Armenian crime rings have been charged with identity theft and other financial crimes, including stealing COVID-19 financial relief funds in recent years.

Citi, based in New York, said a few employees were attempting to stop potential fraud due to this “well-documented Armenian fraud ring operating in certain parts of California” that often involved individuals running up credit card debts, then leaving the country.

However, in the bureau’s order, these Citi employees used identifiable information that broadly discriminated against Armenian Americans in general.

“We sincerely apologize to any applicant who was evaluated unfairly by the small number of employees who circumvented our fraud detection protocols,” the bank said in a statement. “Following an internal investigation, we have taken appropriate actions with those directly involved in this matter and we promptly put in place measures to prevent any recurrence of such conduct.”

Investigation Findings

In its investigation, the bureau found that Citi employees were instructed to single out applications that had Armenian last names, but then to conceal the real reason why those applications were denied. These employees knew they were running afoul of bank laws that prohibit discrimination against national origin, and kept any decisions off recorded phone lines or writing it down.

“Citi stereotyped Armenians as prone to crime and fraud. In reality, Citi illegally fabricated documents to cover up its discrimination,” said Rohit Chopra, the director of the CFPB, in a statement.

CFPB officials said the case involves “hundreds of individuals” who were impacted by Citi’s discrimination, which is relatively small for a bank that has tens of millions of customers. However because the behavior was so egregious, the bureau’s fine against Citi is relatively high compared to the number of people impacted.

Implications for Citi

The case involves Citi’s significant co-brand credit card partnerships with Home Depot, Best Buy, American Airlines and others. It did not involve Citi’s own branded credit cards.

Under CEO Jane Fraser, Citi has been trying to overhaul its risk-management business across a firm that industry analysts still see as complicated and unwieldy, even 15 years after the financial crisis when Citi nearly failed. Fraser has spun off banking franchises in several countries, and has discontinued several lines of business.

But regulators continue to express concerns about how Citi manages its business. The bank has been fined or cited several times by the CFPB, as well as by the Federal Reserve, for unsound business practices.

“I am concerned about Citi’s longstanding problems when it comes to managing the many parts of its sprawling business,” Chopra said in a news conference.

 

RELATED TOPICS:

DON'T MISS

What Are Fresno Real Estate Experts Predicting for 2025 and Beyond?

UP NEXT

Trump Trade War Has Already Had Huge Effect on California Ports

US Construction Spending Falls in April on Weakness in Single-Family Housing Projects

34 minutes ago

Wall Street Opens Lower After Trump’s Steel Tariff Threat

37 minutes ago

California Plan to Ban Most Plants Within 5 Feet of Homes for Wildfire Safety

(The Conversation is an independent and nonprofit source of news, analysis and commentary from academic experts.) Max Moritz, University of ...

4 minutes ago

4 minutes ago

California Plan to Ban Most Plants Within 5 Feet of Homes for Wildfire Safety

In this photo released by the Ukrainian Ministry of Defense, Russian and Ukrainian delegations attend talks at the Ciragan Palace in Istanbul, Turkey, Monday, June 2, 2025. (Ukrainian Ministry of Defense via AP)
10 minutes ago

Ukraine and Russia End Their Latest Round of Direct Peace Talks in Istanbul

Law enforcement officers detain a suspect, after an attack that injured multiple people, in Boulder, Colorado, U.S. June 1, 2025, in this picture obtained from social media. X/@OpusObscuraX/via REUTERS
14 minutes ago

Man Attacks Colorado Crowd With Firebombs, 8 People Injured

Construction workers use wood and lumber to build residential homes in Irvine, California, U.S., March 28, 2025. REUTERS/Mike Blake/File Photo
34 minutes ago

US Construction Spending Falls in April on Weakness in Single-Family Housing Projects

Traders work on the floor at the New York Stock Exchange (NYSE) in New York City, U.S., May 30, 2025. REUTERS/Jeenah Moon/File Photo
37 minutes ago

Wall Street Opens Lower After Trump’s Steel Tariff Threat

44 minutes ago

Smoke Shops, City Hall Will Meet in Courtroom Showdown

47 minutes ago

American Doctors Are Moving to Canada To Escape the Trump Administration

24 hours ago

Townsizing? Land Snorkeling? A User’s Guide to the Latest Travel Lingo

Help continue the work that gets you the news that matters most.

Search

Send this to a friend