CITIBANK SUED OVER ILLEGAL DENIAL OF CREDIT TO CALIFORNIA ARMENIANS, ACCORDING TO LAW OFFICES OF ARA JABAGCHOURIAN (2024)

FAQs

Is Citigroup fined for discriminating against Armenian Americans? ›

The bank agreed to pay $1.4 million of the fine to the victims of the discrimination to settle the case and the remaining $24.5 million to CFPB's victims relief fund and to stop the discrimination, taking measures to ensure compliance going forward.

"The CFPB found that Citi purposefully discriminated against applicants of Armenian descent, primarily based on the spelling of their last name,” said CFPB Director Rohit Chopra. "Citi stereotyped Armenians as prone to crime and fraud. In reality, Citi illegally fabricated documents to cover up its discrimination.”

When you default on credit card debt with Citibank, there's a good chance it will result in a lawsuit. If Citibank wins the case with a default judgment, they may end up garnishing wages, seizing your property, or even taking money directly from your bank account.

Lindsey named several senior Citigroup executives who were allegedly involved in discrimination or sexual harassment, and cited job titles of others who were involved in sexual relationships with direct reports or junior employees.

The first Armenian known to have moved to America was Martin the Armenian, who arrived in Jamestown, Virginia in 1618. Since his arrival Armenians have dispersed all throughout United States. California hosts the largest Armenian-American population.

The Consumer Financial Protection Bureau said that about 7 million customer accounts were affected by Citibank's "deceptive marketing" practices, which included misrepresenting costs and fees and charging customers for services they did not receive.

The national currency of Armenia, the dram, was first issued on November 22, 1993. 1 dram can be divided into 100 lum. The name dram comes from Greek, and it means money. The first recorded use of the name was in the 12th century, when there were silver coins called dram.

The Consumer Financial Protection Bureau found that from at least 2015 through 2021, Citi “targeted” retail services credit card applicants whom employees associated with Armenian national origin. “Citi treated Armenian Americans as criminals who were likely to commit fraud,” the CFPB alleged.

You can negotiate debt settlement at any stage of the collections process, even after you've been sued by a credit card company.

What happens if a credit card company sues you and you can't pay? ›

You may lose the ability to dispute the debt, if you believe you don't owe it or that the amount is wrong, and depending on your situation and your state's laws, the creditor may be able to: Garnish your wages. Place a lien against your property. Move to freeze funds in your bank account.

For instance, a recent report by ProPublica notes that one company is much more likely to file lawsuits against borrowers: Capital One. According to the report, which can be read in full here, Capital One has filed far more lawsuits against borrowers than any other credit card company, and for much smaller debts.

Citi promotes a proactive, risk-based approach to manage reputation risk across its key stakeholder categories, in new and existing activities, and products as well as expansion of activities in new markets, through timely identification, escalation, and management of issues as they arise.

Climate activists, citing Citibank as the second largest financier of fossil fuels in the world, are engaged in a multi-year campaign to pressure the bank to stop financing oil, gas and coal projects.

Citigroup is a global, publicly owned financial services company. Citigroup's largest shareholders include Vanguard, BlackRock, State Street Corporation, and Berkshire Hathaway. Citigroup's predecessor, First National City Corporation, went public in 1968.

In November of 2023, Citigroup executive Ardith Lindsey filed a lawsuit against the bank, accusing it of tolerating a culture of harassment and discrimination in its equities unit. Citigroup has said it will defend itself against her claims.

The CFPB is ordering Citi, the nation's third largest bank, to pay more than $25 million in redress and penalties for violating federal law.