Citigroup seeks to end a racial-bias lawsuit over ATM fees

Citigroup has requested a U.S. judge dismiss a lawsuit alleging racial discrimination, arguing that its policy of waiving ATM fees for customers of minority-owned banks does not violate federal civil rights law. The lawsuit, filed by Werner Jack Becker and Dana Guida in May, accuses Citigroup of imposing fees on non-customers who use its ATMs while exempting customers of minority-owned banks and credit unions since 2016.

Becker and Guida, neither of whom bank with Citigroup, contend that this policy discriminates based on race, favouring customers of banks owned by minorities over those owned by individuals of other racial backgrounds. Citigroup, headquartered in New York, responded in a filing in Fort Lauderdale federal court that its ATMs do not collect racial information, asserting that race plays no role in fee assessments. The bank further argued that Becker and Guida are not obliged to use its ATMs and failed to demonstrate unequal treatment by their own banks.

Citigroup emphasised that civil rights laws do not address every instance of racial inequality, rebutting the plaintiffs’ claim. The plaintiffs’ lawyers from Consovoy McCarthy, known for advocating conservative causes and challenging race-based college admissions, did not immediately comment on Citigroup’s filing.

In a statement, Citigroup defended its fee waiver programme as integral to its mission of expanding banking access in underserved communities, asserting that the programme’s criteria are not race-based. The bank pointed out that a significant number of participating lenders in the programme are not minority-owned. Citigroup expressed confidence that its fee waiver initiative will withstand legal scrutiny. The case is titled Becker et al. v. Citigroup Inc. and is being heard in the U.S. District Court for the Southern District of Florida under case number 24-60834.