Citigroup Seeks Dismissal of Racial Discrimination Lawsuit Over ATM Fee Waiver Policy

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Citigroup has requested that a U.S. judge dismiss a racial discrimination lawsuit that alleges the bank violated federal civil rights laws through its ATM fee waiver policy for customers of minority-owned banks. This legal challenge, filed in May, was brought against Citigroup by two Florida residents, Werner Jack Becker and Dana Guida, who are not clients of Citigroup but incurred fees when using its ATMs.

The lawsuit is a proposed class action, and its central argument is that Citigroup’s policy—initiated in 2016—of waiving out-of-network ATM fees for customers of minority-owned banks and credit unions constitutes racial discrimination. According to the plaintiffs, this policy unfairly benefits customers of banks owned by minority individuals while imposing fees on those whose banks are owned by individuals of different races. The fees in question are typically $2.50 per withdrawal, as noted on Citigroup’s website.

In a filing submitted late Wednesday in the U.S. District Court for the Southern District of Florida, Citigroup contended that its ATMs do not have the capability to identify the race of users. Therefore, the bank argued, race is not a factor in its fee-charging decisions. The New York-based bank also pointed out that Becker and Guida are not obligated to use its ATMs and did not demonstrate that their own banks were treated unfairly compared to others. Citigroup maintained that civil rights laws should not be interpreted as a remedy for all instances of racial injustice.

The plaintiffs, represented by the law firm Consovoy McCarthy, which is known for advocating conservative causes, had not responded to requests for comment as of Friday. Notably, Consovoy McCarthy was successful in persuading the U.S. Supreme Court in 2023 to reject race-based college admissions programs.

In response to the lawsuit, Citigroup emphasized its commitment to expanding banking access in underserved communities. The bank described this initiative as central to its mission of fostering growth and economic progress. Citigroup expressed confidence that its fee waiver program, which it asserts does not have race-based eligibility criteria, will withstand legal scrutiny. The bank further countered claims of racial bias by noting that out of the 50 lenders participating in the program, 14 are not minority-owned.

The case, titled *Becker et al v. Citigroup Inc.*, is being heard in the U.S. District Court for the Southern District of Florida under case number 24-60834.