Citigroup to pay $25.9 mln for discriminating Armenian-American card applicants

Citigroup Inc (C.N) agreed to pay $25.9 million for intentional discrimination against credit card applicants who the bank identified as Armenian-American based on their last names, Reuters reported.

The Consumer Financial Protection Bureau (CFPB) revealed that Citigroup managers trained employees to stereotype applicants suspected of being of Armenian descent because their last names ended in “ian” and “yan,” believing them likely to commit fraud.

The CFPB also said bank employees lied to applicants by giving them fake reasons for denials, and were instructed not to discuss the discrimination in writing or over the phone.

Citigroup apologized, saying it had been trying to thwart an Armenian fraud ring in California.

The bank will pay a $25.9 million civil fine and restitution to card applicants.