Citigroup to Pay $25.9M for Armenian-American Discrimination

The bank specifically targeted customers with surnames ending in “ian” and “yan” by applying more stringent criteria or requiring additional information for their applications or placing a block on the accounts, according to the agency.

Glendale, a suburb of Los Angeles, is home to about 15% of the Armenian-American population in the U.S..

New York-based Citigroup didn’t admit to or deny any of the CFPB’s findings, according to a consent order.

“Regrettably, in trying to thwart a well-documented Armenian fraud ring operating in certain parts of California, a few employees took impermissible actions,” Citigroup said in an emailed statement.

“While we prioritize protecting our bank and our customers from fraud, it is unacceptable to base credit decisions on national origin,” and Citigroup has “taken appropriate actions with those directly involved in this matter and we promptly put in place measures to prevent any recurrence of such conduct,” it added.

(Credit: Bloomberg)