CFPB fines Citi for “intentional” discrimination

In a world where equality should be the norm, it's hard to believe we're seeing a major bank fined for "intentional discrimination." The CFPB's recent enforcement action against Citi for illegal discrimination against Armenian Americans is a stark reminder of the work still needed to ensure fairness in lending.

Citi's actions, which involved targeting applicants based on their surnames and associated national origins, resulted in a hefty $25.9 million fine. It's a costly lesson for any business and a cautionary tale for those starting or running a lending operation: discrimination is not just wrong; it's expensive.

📖 The takeaway? If you're in the lending game, remember:

• The ECOA applies to ALL credit transactions, commercial included.

• Discrimination on the basis of national origin or any protected reason is a direct violation of the ECOA.

• Denied borrowers must be given the accurate and specific reasons for their denial, as per Regulation B.

Don't be the next headline for the wrong reasons. StartSmart and stay informed on compliance standards to ensure your business practices are as fair as they are smart. #ECOA #FairLending #CitiFine #ComplianceMatters #StartSmartCounsel