News Summary
The Consumer Financial Protection Bureau has terminated a consent order prohibiting Citibank from discriminatory practices against Armenian American customers. The order, ending three years early, followed allegations of bias in credit applications. While Citibank has implemented corrective measures, community concerns remain, particularly following a class-action lawsuit. Local leaders express disappointment over the CFPB’s decision, raising questions about the banking industry’s treatment of minority communities in the area.
Glendale, California – The Consumer Financial Protection Bureau (CFPB) has officially ended a consent order against Citibank, allowing the financial institution to lift restrictions that had been imposed regarding discrimination against Armenian American customers. The termination of this order occurred three years ahead of its scheduled expiration and was announced under the leadership of CFPB Acting Director Russ Vought.
Citibank, which entered into the consent order in November 2023, had faced allegations of targeting applicants with surnames ending in “ian” and “yan” for harsher credit card application criteria. The CFPB’s investigation revealed a pattern of discrimination, where Citigroup’s various employees identified Armenian descent applicants as potential fraud risks and used derogatory terms for them, described as labels like “Armenian bad guys” or “Southern California Armenian Mafia.” In compliance with the order, Citibank made payments surpassing $24.5 million in penalties and redress payments while also undertaking corrective measures against employees who engaged in discriminatory practices.
The consent order mandated that Citibank must cease its discriminatory application processes and adopt new measures to ensure adherence to the law. With the termination of this order, the CFPB acknowledged that Citibank had implemented steps to prevent similar violations in the future and waived any allegations of noncompliance related to the previous agreement.
Despite this termination, backlash has emerged from community leaders and lawmakers, notably California Senator Adam Schiff, who criticized the decision, suggesting it favors large financial institutions over the individuals adversely affected by the alleged discrimination. Furthermore, a class-action lawsuit has been initiated against Citibank for reportedly rejecting applications and closing accounts of customers with Armenian-sounding names, indicating a persistent concern among members of the Armenian American community.
The Armenian American population in Glendale constitutes about 15% of the community, with around 250,000 residing within Los Angeles County. Reports have surfaced regarding closed credit card accounts and denied applications from customers who believe they were subjected to discrimination due to their heritage. The Los Angeles Civil + Human Rights and Equity Department has received numerous complaints from Armenian customers who describe troubling banking experiences, highlighting the ongoing impact of discriminatory practices on their financial stability.
Cumulatively, these complaints and the formation of a class-action lawsuit illustrate considerable unrest within the Armenian American community. Among those affected is a couple with a long-standing relationship with Citibank, who reported experiencing both account closures and unexplainable transaction denials as they sought to manage their finances with the institution. Their accounts and safety deposit boxes were closed without sufficient explanation following significant expected deposits, raising further concerns about Citibank’s practices.
In summary, the CFPB’s decision to terminate the consent order against Citibank reflects a significant shift in the regulatory landscape concerning alleged discrimination against minority groups. With bans lifted, the focus remains on the future practices of Citibank, while community leaders emphasize the need for vigilance in monitoring potential discrimination against Armenian American customers.
The recent termination of the consent order serves as a reminder of the challenges faced by the Armenian American community in Glendale and the financial discrepancies that can arise based on ethnic or cultural backgrounds. The incident has sparked broader discussions on the importance of equality in banking practices, as well as the necessity for regulatory bodies to remain vigilant in upholding fair treatment for all consumers.
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HERE Resources
CFPB Terminates Consent Order Against Citibank Over Discrimination
Additional Resources
- Los Angeles Times: Trump Administration Cancels Citibank Consent Order
- Wikipedia: Discrimination in Banking
- USA Herald: CFPB Ends Citibank Case Over Alleged Discrimination
- Google Search: Banking Discrimination
- ABC7: Los Angeles Couple’s Experience Amid Investigation
- Google Scholar: Bank Discrimination Regulations
- New York Times: Citigroup Discrimination Against Armenian Americans
- Encyclopedia Britannica: Financial Institution
- CNN: Citibank Accusations of Discrimination Against Armenian Americans
- Google News: Citibank Discrimination Lawsuit
Author: STAFF HERE LOS ANGELES WRITER
The LOS ANGELES STAFF WRITER represents the experienced team at HERELosAngeles.com, your go-to source for actionable local news and information in Los Angeles, Los Angeles County, and beyond, specializing in "news you can use" with coverage of product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise from years of dedicated reporting and strong community input, including local press releases and business updates, while delivering top reporting on high-value events like the Academy Awards, LA Auto Show, and Los Angeles Marathon, extending coverage to key organizations such as the Los Angeles Area Chamber of Commerce and the Los Angeles Tourism & Convention Board, plus leading businesses in entertainment and technology like Warner Bros. and SpaceX, and as part of the broader HERE network including HEREAnaheim.com , HERECostaMesa.com , HEREHuntingtonBeach.com , and HERESantaAna.com , providing comprehensive, credible insights into Southern California's dynamic landscape. HERE Anaheim HERE Beverly Hills HERE Coronado HERE Costa Mesa HERE Hollywood HERE Huntington Beach HERE Long Beach HERE Los Angeles HERE Mission Viejo HERE San Diego HERE Santa Ana
