Credit card discrimination
In Re: Citibank, N.A.
Date: Oct. 16, 2025
Issue: The Consumer Financial Protection Bureau’s dismissal of Citibank’s consent order over credit card discrimination allegations.
Case Summary: CFPB ended its consent order against Citibank after accusing the bank of systematically discriminating against credit card applicants whose last names appeared to be of Armenian origin.
In 2023, Citibank agreed to pay $26 million to resolve allegations that it discriminated against Armenian applicants. According to CFPB, from 2015 to 2021, Citibank routinely applied heightened scrutiny and denied certain credit card applications based on Armenian national origin. Citibank allegedly identified applicants for discriminatory treatment by flagging last names ending in “-ian” or “-yan,” particularly when the applicants lived in or near Glendale, California.
CFPB alleged that Citi employees believed applicants with those surnames were more likely to commit fraud and referred to them as “bust outs,” assuming they would run up large balances and then “bust out” by leaving the country or failing to repay. As a result, Citibank allegedly denied credit more often to Armenian applicants than to similarly situated individuals. Through its investigation, CFPB concluded that Citi’s alleged discriminatory pattern lacked any legitimate, nondiscriminatory justification. CFPB also alleged that Citi tried to cover up the alleged discrimination. According to the CFPB, Citibank supervisors directed employees not to discuss their targeting of perceived Armenian applicants in phone calls or written communications. To resolve the allegations, Citi agreed to pay a civil-money penalty of $24.5 million to CFPB. Citi also agreed to provide $1.4 million in redress to affected consumers.
CFPB Director Russell Vought ended the consent order after determining that Citibank met all its obligations. CFPB stated that Citibank paid the required civil penalty, issued redress payments, and implemented corrective measures to prevent future violations. As a result, CFPB terminated the order and waived any claims of noncompliance.
Bottom Line: A Citi spokesperson commented: “Regrettably, in trying to thwart a well-documented Armenian fraud ring operating in certain parts of California, a few employees took impermissible actions … While we prioritize protecting our bank and our customers from fraud, it is unacceptable to base credit decisions on national origin … We sincerely apologize to any applicant who was evaluated unfairly by the small number of employees who circumvented our fraud detection protocols.”
Documents:
Consent order
Dismissal
