Bank / Credit Union

Citi ATM fee waiving policy for minority-owned banks leads to lawsuit

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May 21, 2024

A group of Florida customers have entered a lawsuit against Citigroup for allegedly charging out-of-network fees at Citi ATMs for white customers. The lawsuit argues that because customers of minority-owned banks were not charged these fees, this constitutes racial discrimination against white individuals, according to a report by USA Today.

Currently, Citigroup's policy is to charge out-of-network fees for customers from different financial institutions, but it does waive those fees to customers of 52 minority-owned banks, community development credit unions and community banks. The customers are seeking a class-action status for a racial discrimination lawsuit.

"Like most banks, Citi charges customers an out-of-network fee when they use Citi's ATMs to withdraw cash from a financial institution outside of Citi's ATM network. But unlike other banks, Citi imposes this fee only when a customer withdraws money from a financial institution owned by people of the wrong race," two plaintiffs said in the lawsuit.

Citigroup said it is reviewing the complaint and it has "no tolerance for discrimination in any form, and we take allegations to the contrary very seriously."

Citigroup's policy aims to combat racial inequality and expand financial access to financially underserved communities.

The lawsuit was filed by a law firm founded by anti-affirmative action activist Edward Blum.