Friday, February 7, 2025
3.2 C
London
HomeBankingPhiladelphia’s Citadel Federal Credit Union agrees to pay $6.5m to settle allegations...

Philadelphia’s Citadel Federal Credit Union agrees to pay $6.5m to settle allegations of redlining

Date:

Paysafe Explores Potential Sale Amid Market Challenges

Could a Strategic Sale Turnaround Be on the Horizon...

Adviser Software and Intergen Data Reveal DeepSeek’s Key Risks

A Comprehensive Analysis of Risks Faced by DeepSeek in...

Gemini Explores Potential IPO Opportunities Amid Market Changes

A Deep Dive into Gemini's Strategies for an Initial...
  • Citadel Federal Credit Union will pay over $6.5 million to settle allegations of redlining in predominantly Black and Hispanic neighborhoods in and around Philadelphia.
  • The Department of Justice (DOJ) filed a complaint accusing Citadel of lending discrimination by avoiding providing mortgage services to these communities from 2017 to 2021.
  • Peer lenders offered mortgage services in these neighborhoods at three times the rate of Citadel, according to the DOJ.
  • As part of the settlement, Citadel will allocate:
    • $6 million to a loan subsidy fund for mortgages, home improvement, and refinance loans in affected neighborhoods.
    • $250,000 for community partnerships focusing on financial education, credit, and homeownership.
    • $270,000 for outreach, advertising, and financial education aimed at these communities.
  • Citadel will also open three new branches in predominantly Black and Hispanic neighborhoods and appoint a community lending officer.
  • The settlement is the DOJ’s first redlining resolution involving a credit union.
  • Citadel has assets of about $6 billion, serves over 263,000 members, and operates 24 branches.

Related stories

spot_img

Subscribe

- Never miss a story with notifications

- Gain full access to our premium content

- Browse free from up to 5 devices at once

Latest stories