By Jonathan Stempel
(Reuters) – Citigroup requested a U.S. choose to dismiss a racial-discrimination lawsuit that claims the financial institution violated federal civil rights legislation by waiving ATM charges for patrons of minority-owned banks.
The third-largest U.S. financial institution had been sued in Could by two Florida prospects, Werner Jack Becker and Dana Guida, who don’t financial institution with Citigroup and have been charged charges for utilizing its ATMs.
Their proposed class motion objected to Citigroup’s coverage since 2016 of waiving out-of-network ATM charges for patrons of minority-owned banks and credit score unions, whereas charging prospects whose banks have been owned by folks of the “mistaken race.”
The charges are usually $2.50 per withdrawal, based on Citigroup’s web site.
In a submitting late on Wednesday in Fort Lauderdale, Florida federal courtroom, Citigroup mentioned its ATMs have no idea customers’ race, which means that race didn’t matter when it charged charges.
The New York-based financial institution added that Becker and Guida are usually not contractually required to make use of its ATMs, and didn’t present their very own banks have been handled unequally. It mentioned civil rights legislation was not a “treatment for all racial injustice.”
Attorneys for the plaintiffs didn’t instantly reply to requests for touch upon Friday.
The plaintiffs are represented by Consovoy McCarthy, which frequently argues conservative causes, and in 2023 persuaded the U.S. Supreme Courtroom to reject race-based school admissions packages.
Citigroup mentioned its ATM charge waivers are a part of an effort to increase banking entry in communities of shade. It disputed that this system has race-based eligibility standards, and mentioned 14 of the 50 collaborating lenders are usually not “minority-owned.”
The case is Becker et al v. Citigroup Inc (NYSE:), U.S. District Courtroom, Southern District of Florida, No. 24-60834.
