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The Consumer Financial Protection Bureau (CFPB) has officially dropped its high-profile case against Citibank NA, ending a year-long legal battle over allegations that the banking giant systematically discriminated against credit card applicants with Armenian-sounding last names.

The decision, filed Thursday, terminates the 2023 consent order that accused Citi of unfairly flagging, denying, or delaying retail-branded credit card applications from individuals whose surnames ended in “ian” or “yan”, a hallmark of Armenian heritage — particularly those living near Glendale, California, home to one of the largest Armenian communities outside of Armenia.

A $24.5 Million Reckoning and Compliance Met

Acting CFPB Director Russell Vought said in the order that Citi “has fulfilled certain obligations” under the consent order, including paying a $24.5 million civil penalty, compensating affected individuals, and strengthening its compliance systems to prevent future violations of the Consumer Financial Protection Act.

“The bureau hereby terminates this consent order,” Vought stated, adding that the CFPB waives any alleged noncompliance under the agreement.

Neither Citi nor the CFPB immediately responded to requests for comment late Thursday.

Political Drama: Director Plans to Shut Down CFPB

The timing of the case’s dismissal raised eyebrows. Just a day earlier, Vought — who also serves as White House budget chief — announced on The Charlie Kirk Show that he plans to shut down the CFPB entirely in the coming months.

“We don’t have anyone working there except our Republican appointees and a few career staff doing statutory responsibilities while we close down the agency,” Vought said. “We will be successful probably within the next two or three months.”

Allegations of Bias and Cover-Up

The CFPB’s 2023 findings painted a troubling picture of systematic profiling within Citi’s retail services division between 2015 and 2021 — the unit managing co-branded cards for retailers like Home Depot and Best Buy.

According to the bureau, Citi employees allegedly flagged applicants with Armenian-looking last names for “extra scrutiny”, rejected them under false pretenses, and were instructed to avoid written or recorded discussions about these practices to conceal discriminatory behavior.

Supervisors even encouraged staff to cite “pretextual” reasons for denials, according to the consent order.

Citi’s Response: “We Went Too Far”

Citibank has acknowledged wrongdoing, but denied intent to discriminate, saying the actions stemmed from efforts to combat organized fraud linked to Armenian criminal networks operating in parts of California.

“Regrettably, in trying to thwart a well-documented Armenian fraud ring, a few employees took impermissible actions,” a Citi spokesperson said at the time. “While we prioritize protecting our customers from fraud, it is unacceptable to base credit decisions on national origin.”

Citi added that it had apologized to applicants who were evaluated unfairly and committed to strengthening anti-discrimination protocols across its operations.

A Quiet Ending to a Controversial Case

With the CFPB Citi Armenian Discrimination suit now formally closed, Citi walks away having paid its penalty and tightened its procedures — while the CFPB itself faces an uncertain future under political pressure.

In the courtroom and in Washington, it seems both the regulator and the regulated are learning the same hard lesson: accountability, like justice, can be both costly and fleeting.