United States v Citadel Federal Credit Union (E.D. Penn.)

On October 22, 2024, the court entered a consent order in United States v. Citadel Federal Credit Union (E.D. Pa.). The complaint, which was filed on October 10, 2024, alleged that Citadel violated the Equal Credit Opportunity Act and the Fair Housing Act by redlining majority-Black and Hispanic neighborhoods in its market area, which includes Bucks, Chester, Delaware, Lancaster, Montgomery, and Philadelphia Counties, Pennsylvania. Specifically, the complaint alleged that Citadel made disproportionately low numbers of home loans to applicants in majority-Black and Hispanic neighborhoods, placed all but one of its twenty-four branches in majority-white neighborhoods, and failed to address known redlining risk. The consent order requires Citadel to open or acquire three full-service branches and invest at least $6 million in a loan subsidy fund to increase access to home mortgage, home improvement, and home refinance loans for residents of majority-Black and Hispanic communities in Philadelphia County. Among other things, the proposed consent order also requires Citadel to spend at least $270,000 on advertising, outreach, and consumer financial education and counseling, and spend at least $250,000 to develop community partnerships to provide services that increase access to residential mortgage credit in majority-Black and Hispanic communities throughout its market area.

Press Release (10/10/2024)