Originally appearing in the Los Angeles Times on Nov. 27, 2023, Laurence Darmiento covers Citibank’s account closures and allegations of violations of fair lending laws.
Lauren Saunders, associate director of the National Consumer Law Center, said that banks have a responsibility to look out for illegal activity such as accounts being used by drug cartels and for money laundering and perpetrating fraud, but that it has gone beyond that.
“What we are seeing right now is that some are overreacting or indiscriminately freezing or closing accounts based on supposed red flags, catching innocent people in the process and without giving them any clear procedure or remedy or timeline to get their money back when they, in fact, are not criminals.”
Lauren Saunders, associate director of the National Consumer Law Center.
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