American bank Citigroup has been ordered to pay a $25.9 million fine and provide restitution to Armenian Americans for engaging in discriminatory practices when issuing credit cards, according to the Consumer Financial Protection Bureau (CFPB). The bank reportedly denied credit card applications to individuals of Armenian descent between 2015 and 2021 based solely on their last names. CFPB director Rohit Chopra stated that Citi’s actions harmed both the individuals affected and the community as a whole. As part of the settlement, Citi will void counterfeit documents used to conceal the discrimination and has been instructed not to discuss the matter with employees via written correspondence or phone calls, as stated by the CFPB’s announcement.

The announcement also highlighted that Citi executives were found to have withheld credit cards from applicants, providing false reasons for their actions. Under the supervision of the CFPB, Citi will need to pay a $24.5 million fine and provide $1.4 million in restitution to affected individuals. This impacts Citi’s division in Glendale, California, where around 15 percent of the population is of Armenian descent.

This news underscores the importance of combating discriminatory practices in the financial sector and holding institutions accountable for their actions. The CFPB’s investigation and subsequent settlement aims to provide justice for those affected by Citigroup’s discriminatory practices. It also serves as a reminder for banks and financial institutions to ensure fair and equal treatment for all applicants, regardless of their ethnic background.

Armenian Americans and advocacy groups have applauded the CFPB’s findings and the subsequent fine imposed on Citigroup. The restitution provided will help alleviate the financial burden faced by individuals who were unfairly denied credit cards based on their Armenian heritage. The agreement between Citi and the CFPB signifies a step towards addressing systemic discrimination and promoting inclusivity in the banking industry.

As the story continues to develop, it remains crucial for Citigroup to take proactive measures to prevent future instances of discrimination and to rebuild trust with the Armenian American community. By implementing robust internal policies, training programs, and accountability mechanisms, the bank can ensure that similar discriminatory practices do not occur in the future.