In a shocking revelation, the Consumer Financial Protection Bureau (CFPB) has accused Citigroup of intentional discrimination against Armenian Americans during the credit card application process. The CFPB disclosed that certain bank employees had internally argued that Armenians were more likely to engage in fraudulent activities, referring to them as "bad guys" or associating them with organized crime.

According to the CFPB's findings, Citigroup employees were trained to reject applications with last names ending in “yan” or "ian," which are the most common suffixes in Armenian last names. Additionally, applications originating from Glendale, California - a city with a significant Armenian American population - were also targeted for scrutiny. Approximately 15% of the country's Armenian American community resides in Glendale.

As a result of these discriminatory practices, Citigroup has been ordered to pay $24.5 million in fines and provide $1.4 million in remedies to affected customers. This case originated from the presence of organized crime syndicates involving Armenian Americans operating in Southern California. These crime rings have been implicated in identity theft and other financial crimes, including the misappropriation of COVID-19 financial relief funds in recent years.

Citigroup, headquartered in New York, has attempted to justify its actions by claiming that a few employees were trying to prevent potential fraud due to the existence of a well-documented Armenian fraud ring in certain parts of California. However, the CFPB's order highlights that these employees engaged in broad discrimination against Armenian Americans in general, using identifiable information to deny their applications unfairly.

In response to the allegations, Citigroup issued a statement apologizing to any applicant who had been evaluated unfairly by the small number of employees involved. The bank also acknowledged conducting an internal investigation and taking appropriate actions against those responsible. They further implemented measures to prevent any recurrence of such conduct.

During its investigation, the CFPB discovered that Citigroup employees had been instructed to target applications with Armenian last names and subsequently hide the real reasons for their denial. These employees knowingly violated bank laws that prohibit discrimination based on national origin, ensuring that their decisions were not recorded on phone lines or in writing.

Rohit Chopra, the director of the CFPB, condemned Citigroup's actions, stating, "Citi stereotyped Armenians as prone to crime and fraud. In reality, Citi illegally fabricated documents to cover up its discrimination." The CFPB officials have indicated that the case affected "hundreds of individuals," a relatively small number considering Citigroup's substantial customer base. However, due to the severity of the discrimination, the bureau imposed a significant fine on Citigroup.

This scandal once again highlights the importance of fair and non-discriminatory practices in the financial industry. The CFPB's action against Citigroup serves as a reminder that no individuals or communities should be subjected to unfair treatment based on their ethnicity or national origin.