US government backs Citibank in Armenian discrimination dispute

The U.S. Consumer Financial Protection Bureau (CFPB) has officially terminated a 2023 enforcement case against Citigroup’s lending arm, Citibank, which had been penalised for alleged discrimination against Armenian Americans in California, Caliber.Az reports, citing foreign media.

In 2023, Citibank agreed to pay nearly $26 million in fines and consumer redress to resolve allegations that it had discriminated against credit card applicants based on their last names and then falsified records to conceal the violations. At the time, Citigroup apologised, saying a “small number” of employees had circumvented protocols while attempting to thwart an Armenian fraud ring and that those involved had been disciplined.

In a notice posted on the CFPB’s website on October 16, Acting Director Russell Vought stated that the consent order had been terminated, noting that the bank had paid the settlement costs and implemented measures to prevent future violations. The original 2023 order was scheduled to remain in effect for another three years and required the bank to provide compliance records and make employees available to investigators.

Representatives for Citigroup declined to comment, and the CFPB did not respond to requests for comment. Vought, who also serves as President Donald Trump’s budget director, has overseen efforts to significantly reduce the federal workforce and has indicated plans to shut down the CFPB within months.

Since Trump assumed control of the agency in February, the CFPB has sought to undo several previously resolved enforcement actions, including cases involving Toyota Motor Credit, Bank of America, Apple, and US Bank, while dropping multiple pending cases.

By Vugar Khalilov