ALEXANDRIA, Va. (Oct. 10, 2024) – National Credit Union Administration Chairman Todd M. Harper released the following statement today on the U.S. Department of Justice’s settlement with Citadel Federal Credit Union to resolve lending discrimination allegations. Citadel is a $6 billion financial institution in Southeastern Pennsylvania.
“The Justice Department’s settlement with Citadel Federal Credit Union is significant. It signals that federal credit unions must follow fair lending laws. It signals to all communities that discrimination through redlining will not be tolerated. And, it brings communities who have been discriminated against a step closer to an equitable opportunity to access safe, fair, and affordable financial services and to closing the wealth gap.
“The NCUA maintains a strong relationship with the Justice Department’s Civil Rights Division and the department’s Combating Redlining Initiative, which investigates potential fair lending violations and helps to end discriminatory lending practices. That productive relationship will continue through our fair lending examination and referral process.
“Regardless of their financial provider of choice, all consumers — especially those of modest means — deserve to be part of a fair financial system. The NCUA’s fair lending efforts aim to create a financial system that works for all Americans, regardless of their race, ethnicity, age, sex, orientation, marital status, religion, or disability. By working to enforce fair lending and consumer financial protection laws, the NCUA is ensuring that the American system of cooperative credit remains faithful to its mission of ‘people helping people.’”
The NCUA in recent years has established a dedicated fair lending supervision division and more than doubled its annual fair lending compliance examinations. The NCUA remains fully committed to supervising for compliance with the Fair Housing Act and the Equal Credit Opportunity Act in its examination practices. The NCUA also regularly continues to refer credit unions to the U.S. Department of Justice when the agency identifies patterns or practices of discrimination and require appropriate relief for harmed consumers. For 2023 and 2024, these referrals impacted more than 75,000 consumers.