Major US Bank Will Hand Out $1,400,000 for Treating People Like Criminals, Giving 'Fake Reasons’ To Deny Services: CFPB - The Daily Hodl
The Consumer Financial Protection Bureau (CFPB) is ordering lending giant Citibank to shell out over a million dollars to recompense consumers who were racially profiled. ...
- The Consumer Financial Protection Bureau (CFPB) has ordered Citibank to pay over a million dollars to potential customers who were racially profiled and treated unfairly.
- Citibank violated the Equal Credit Opportunity Act by denying services to Armenian Americans based on their heritage.
- The bank specifically targeted surnames ending in "-ian" and "-yan" and applicants in or around Glendale, California, which is home to a significant Armenian American population.
- Citi employees received instructions from mid-level managers to recognize applicants of Armenian descent and use various means to reject their applications.
- Employees gave fake reasons for rejecting the applications, including blaming the applicants themselves.
- As a result, CFPB is ordering Citi to pay $1.4 million to credit card applicants who were rejected due to national origin and a $24.5 million penalty.
The article highlights a discriminatory practice by Citibank, resulting in negative sentiment towards the bank's actions. The CFPB's intervention and penalties indicate a strong stance against such practices.