Discrimination victims face compensation challenges amid CFPB shutdown
The impacts of disruptions with the Consumer Financial Protection Bureau
The Consumer Financial Protection Bureau is fighting to resume operations. Some employees have been called back, and others have been ordered reinstated by a judge. However, many of the agency's cases remain in limbo.
SOUTHFIELD, Mich. (FOX 2) - Victims of discrimination due to their last names may now face challenges in receiving compensation because of actions taken by the Trump Administration to dismantle a government watchdog.
Garrett Boorojian received a $2,600 compensation check.
Big picture view:
The Consumer Financial Protection Bureau (CFPB) is fighting to resume its operations after the Trump administration shut down the consumer watchdog in February. Some employees have been called back, and others have been ordered reinstated by a judge, but many of the agency's cases remain in limbo.
Local perspective:
Garrett Boorojian received a check in January from Citibank after the CFPB found that Citibank discriminated against him and other Armenian Americans because their last names end in "ian" or "yan," denying them credit and essentially labeling them as criminals.
Citibank was ordered to pay nearly $26 million.
"A lot of people are worried and concerned that without the Consumer Financial Protection Bureau, Armenian Americans and Americans everywhere—are we going to be properly protected?" said Boorojian. "I remember filling out a credit card application and having to wait about maybe 15 to 20 minutes before getting a response back, and then I was denied. I’m thinking I just was able to get a auto loan for a brand new car the year before—I pay rent every month, my credit’s great. I was unknowingly discriminated against by Citibank."
This happened six years ago in Florida when he was trying to purchase an engagement ring for his now-wife, and the engagement had to be postponed.
"The idea that this happened—and this happened by a major U.S. bank. There is no place anywhere in society for discrimination against anybody," said Boorojian. "For that to occur—justice is being served with the Consumer Financial Protection Bureau, but now that justice feels like it’s on hold because now the Consumer Financial Protection Bureau is in limbo."
What's next:
Boorojian, who worked in the financial sector, is grateful he received his compensation but is concerned others will not. With the bureau's future in limbo, many other Americans could end up victims of discrimination or predatory lending, or worse, with no government watchdog to protect them.
"To not have that representation is very troubling—very concerning, and just looking at the bigger picture—it’s a threat to our democracy when you have the Consumer Financial Protection Bureau or all these other agencies where people are losing their jobs."