October 8, 2010
Citibank Continues to Deny Credit to Firearms Industry
Once again Citibank has drawn the ire of the firearms community over its credit policies. This time it deals with not extending lines of credit to businesses even remotely related to the firearms industry. As many people remember back in January 2008, NSSF took Citi Merchant Services to task over its decision to stop processing credit card transactions involving the lawful sale of firearms by law-abiding, federally licensed, firearm distributors/retailers. Unfortunately, it became evident that the decision was not a mistake of a single employee, but was rather a corporate-wide policy.
Fast forward to October 2010 when the Warne Scope Mounts Company of Oregon, manufacturers of scopes and components, decided to submit an application for a business line of credit to purchase materials from the Home Depot. The credit line was initially approved, only to be rescinded the next day by Home Depot Credit Services, Citibank (South Dakota), N.A., Creditor based upon the simple explanation that, “It’s because of the industry you are in.” The term industry simply meant that the company “makes parts for the gun industry.” A law-abiding manufacturer that wanted to purchase materials from the Home Depot NOT to be used in the making of their products was denied credit simply because of the association with the firearms industry. .
During difficult economic times over the past few years and high unemployment rates nationally, the firearms industry has grown and created well-paying jobs with absolutely no government bailouts. You would think being such a bright spot in the economy, that companies like Citibank would be more than willing to extend business lines of credit. Instead, Citibank would rather take government taxpayer funded bailout money than extend credit to a flourishing and growing industry. Receiving government bail out money coupled with Citibank’s prejudice towards a constitutionally protected right only further delays any economic recovery.
Citibank has stood behind their anti-gun policies for years, which affects not only firearms retailers, manufacturers and distributors, but also law enforcement agencies at the federal, state and local levels of government and law-abiding citizens. You would think that Citibank would want to aid in the recovery of America, but I guess their “policies” are more important than American prosperity.