Citigroup Inc. was ordered to pay $25.9 million in fines and redress for illegally discriminating against credit-card applicants the bank identified as Armenian American.
The bank, from 2015 to 2021, singled out applicants for certain credit-card products suspected of being of Armenian descent, based on their surnames, then Citigroup supervisors conspired to hide the discrimination by instructing employees not to discuss the practices in writing or on recorded phone lines, the Consumer Financial Protection Bureau said in a statement Wednesday.
The bank will pay $1.4 million to harmed consumers along with a $24.5 million penalty.
"Citi purposefully discriminated against applicants of Armenian descent, primarily based on the spelling of their last name," CFPB Director Rohit Chopra said in the statement. "Citi stereotyped Armenians as prone to crime and fraud. In reality, Citi illegally fabricated documents to cover up its discrimination."
The agency's findings focused on Citigroup's retail-services division, which houses the bank's co-brand credit-card partnerships with the likes of Home Depot Inc. and Best Buy Co.
The bank targeted retail-services credit-card applicants with surnames employees associated with Armenian origin as well as applicants in or around Glendale, California, the CFPB said.
