Philadelphia’s Citadel Federal Credit Union agrees to pay $6.5m to settle allegations of redlining

Citadel Federal Credit Union will pay over $6.5 million to settle allegations of redlining in predominantly Black and Hispanic neighborhoods in and around Philadelphia.
The Department of Justice (DOJ) filed a complaint accusing Citadel of lending discrimination by avoiding providing mortgage services to these communities from 2017 to 2021.
Peer lenders offered mortgage services in these neighborhoods at three times the rate of Citadel, according to the DOJ.
As part of the settlement, Citadel will allocate:
- $6 million to a loan subsidy fund for mortgages, home improvement, and refinance loans in affected neighborhoods.
- $250,000 for community partnerships focusing on financial education, credit, and homeownership.
- $270,000 for outreach, advertising, and financial education aimed at these communities.
Citadel will also open three new branches in predominantly Black and Hispanic neighborhoods and appoint a community lending officer.
The settlement is the DOJ’s first redlining resolution involving a credit union.
Citadel has assets of about $6 billion, serves over 263,000 members, and operates 24 branches.