CITIGROUP TO PAY $25.9M IN DISCRIMINATION PROBE
Armenian American applicants singled out, bureau says
Citigroup intentionally discriminated against Armenian Americans when they applied for credit cards, the Consumer Financial Protection Bureau said Wednesday.
The bureau said some bank employees argued internally that Armenian Americans were more likely to commit fraud and referred to applicants as “bad guys” or as affiliated with organized crime.
The CFPB found that Citi employees were trained to avoid approving applications with last names ending in “yan” or “ian” — the most common suffix to Armenian last names — as well as applications that originated in Glendale, where a significant portion of the country's Armenian American population lives.
As part of the order, Citi will pay $24.5 million in fines as well as $1.4 million in remedies to impacted customers.
The origins of the case come as a result of some organized crime syndicates operating in Southern California that involve Armenian Americans. The leaders of the Armenian crime rings have been charged with identity theft and other financial crimes, including stealing COVID-19 financial relief funds in recent years.
Citi, based in New York, said a few employees were attempting to stop potential fraud due to this “welldocumented Armenian fraud ring operating in certain parts of California” that often involved individuals running up credit card debts, then leaving the country.
However, in the bureau's order, these Citi employees used identifiable information that broadly discriminated against Armenian Americans in general.
“We sincerely apologize to any applicant who was
evaluated unfairly by the small number of employees who circumvented our fraud detection protocols,” the bank said in a statement. “Following an internal investigation, we have taken appropriate actions with those directly involved in this matter and we promptly put in place measures to prevent any recurrence of such conduct.”
In its investigation, the bureau found that Citi employees were instructed to single out applications that had Armenian last names, but then to conceal the real reason why those applications were denied. These employees knew they were running afoul of bank laws that prohibit discrimination against national origin, and kept any decisions off recorded phone lines or writing it down.
“Citi stereotyped Armenians as prone to crime and fraud. In reality, Citi illegally fabricated documents to cover up its discrimination,” said Rohit Chopra, the director of the CFPB, in a statement.
CFPB officials said the case involves “hundreds of individuals” who were impacted by Citi’s discrimination, which is relatively small for a bank that has tens of millions of customers. However because the behavior was so egregious, the bureau’s fine against Citi is relatively high compared to the number of people impacted.
The case involves Citi’s significant co-brand credit card partnerships with Home Depot, Best Buy and others. It did not involve Citi’s own branded credit cards.
Under CEO Jane Fraser, Citi has been trying to overhaul its risk-management business across a firm that industry analysts still see as complicated and unwieldy, even 15 years after the financial crisis when Citi nearly failed. Fraser has spun off banking franchises in several countries, and has discontinued several lines of business.
But regulators continue to express concerns about how Citi manages its business. The bank has been fined or cited several times by the CFPB, as well as by the Federal Reserve, for unsound business practices.
“I am concerned about Citi’s longstanding problems when it comes to managing the many parts of its sprawling business,” Chopra said in a news conference.
Soapy Joe’s Car Wash is expanding, according to its website, with six locations in the works: One in Chula Vista, two in Santee, one in Poway and one in Carlsbad. Addresses are at soapyjoescarwash.com/locations.
These all follow the debut of Soapy Joe’s Car Wash in Vista, at 1661 W. Vista Way, which is giving away free washes Nov. 15 to mark its grand opening.
On its website the chain announced it is offering one more deal, across locations: “To our veterans and active-duty members, your service means the world to us. This Veterans Day, we’re saluting our heroes
with a FREE wash.”
Super Star Car Wash, which focuses on monthly subscriptions, is adding locations in Mira Mesa and Kearny Mesa, according to its website.
A Pronto Wash Mobile franchise is coming to Las Americas Premium Outlets. It’s the North Carolina-based company’s second San Diego County location. Its website advertises a new franchise package for $65,000 that includes the license, equipment and training.
IKEA discount shoppers should act fast
If you signed up for IKEA Family — or haven’t
yet, but have a pricey project in the works — here’s a word of advice: Make those major purchases before the end of January. Starting Feb. 1, the company, which specializes in designing furniture-shaped puzzles and lingonberry jam, is terminating the 5 percent discount it now offers to its loyalty members.
Chick-fil-A eyeing spring opening in La Jolla
Chick-fil-A said Tuesday that its first La Jolla location is on track to open next spring.
“We look forward to joining the community and to serving all of our guests delicious food in an environment of genuine hospitality,” it said in an email. That location won’t have a drive-thru, it confirmed.
The absence of a drivethru lines up with La Jolla’s community plan, which states: “With the exception of ramps for the disabled, curb cuts and drivethroughs are not recommended on pedestrian-oriented streets, such as Prospect Street, Girard Avenue and Wall Street.”