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