Much like Wells Fargo and Bank of America, Citigroup Inc. faced serious lawsuits after it was revealed that it gave Black homeowners loans with higher rates and fees that eventually forced them into foreclosure and resulted in massive defaults, Reuters reported in 2014. Miami, one of the cities that filed a lawsuit against the bank, made it clear that the discriminatory practices are still plaguing the area’s housing market and local economy today, even years after the bank gave out the loans. Citigroup, like Wells Fargo, petitioned to have the case against the bank thrown out but was quickly shot down by the court.
National City Bank/PNC Bank
Back in 2013, the Consumer Financial Protection Bureau and the Department of Justice filed a joint complaint against National City Bank for charging Black and Hispanic homebuyers higher prices on mortgage loans from 2002 to 2008. National City Bank’s successor PNC Bank was asked to pay at least $35 million in restitution to the borrowers who were impacted by six years of discriminatory practices. The CFPB director, Richard Cordray, issued a statement at the time promising to hold the bank accountable. “Borrowers should never have to pay more for a mortgage loan because of their race or national origin,” Cordray said in a public statement. “Today’s enforcement action puts money back in the pockets of harmed consumers and makes clear that we will hold lenders accountable for the effects of their discriminatory practices.”