InfoBytes Blog
CFPB orders large bank to pay $25.9 million
On November 8, the CFPB announced an enforcement action against a large bank for allegedly discriminating against credit card applicants of Armenian descent. According to the consent order, from at least 2015-2021, respondent allegedly engaged in discriminatory practices that involved denying credit applications and providing false reasons for denials to credit applicants based on their national origin. Respondent’s supervisors also allegedly instructed employees not to discuss these practices in writing or on recorded phone lines. Respondent will pay $1.4 million to affected consumers and a $24.5 million civil money penalty. The CFPB found that respondent violated the Equal Credit Opportunity Act and its implementing Regulation B by unlawfully denying credit based on national origin stereotypes, as well as the CFPA.