University of Michigan Law School
Civil Rights Litigation Clearinghouse
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Case Name United States v. Compass Bank FH-AL-0006
Docket / Court 2:07-cv-00102 ( N.D. Ala. )
State/Territory Alabama
Case Type(s) Fair Housing/Lending/Insurance
Attorney Organization U.S. Dept. of Justice Civil Rights Division
Case Summary
On January 12, 2007 the United States Department of Justice filed a lawsuit in the U.S. District Court for the Northern District of Alabama against a bank, alleging that it engaged in discriminatory lending practices. The plaintiffs alleged that as a result of the defendant's policies and practices, ... read more >
On January 12, 2007 the United States Department of Justice filed a lawsuit in the U.S. District Court for the Northern District of Alabama against a bank, alleging that it engaged in discriminatory lending practices. The plaintiffs alleged that as a result of the defendant's policies and practices, some borrowers unfairly paid higher prices for their automobile loans based on their marital status.

Specifically, the plaintiffs allege that the defendant instructed its automobile dealers that it could price loans to non-married co-applicants at higher prices unrelated to credit risk characteristics and loan terms. In some instances, the defendant specifically instructed automobile dealers to prevent non-married co-applicants from applying for a loan altogether.

DOJ's allegations are based from information acquired by the Federal Reserve Bank during a routine examination of Compass Bank in 2003.

The plaintiff filed a proposed consent order that was entered by the Court (Judge Sharon Lovelace Blackburn) on February 21, 2007. Under the consent order, the defendant agrees to implement policies and procedures designed to prohibit lending distinctions based on marital status and will provide staff with education training. In addition, the defendant will pay up to $1.75 million out to certain borrowers who were charged higher interest rates based on their marital status.

Megan Richardson - 04/03/2014


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Issues and Causes of Action
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Issues
Content of Injunction
Develop anti-discrimination policy
Defendant-type
Bank or credit provider
Discrimination-area
Lending
Discrimination-basis
Family discrimination
General
Predatory lending
Plaintiff Type
U.S. Dept of Justice plaintiff
Causes of Action Equal Credit Opportunity Act (ECOA), 15 U.S.C. ยง 1691
Defendant(s) Compass Bank
Plaintiff Description United States Department of Justice Civil Rights Division Section on Housing and Civil Enforcement
Indexed Lawyer Organizations U.S. Dept. of Justice Civil Rights Division
Class action status sought No
Class action status granted No
Prevailing Party Plaintiff
Public Int. Lawyer Yes
Nature of Relief Damages
Injunction / Injunctive-like Settlement
Source of Relief Settlement
Form of Settlement Court Approved Settlement or Consent Decree
Order Duration 2007 - 2009
Case Closing Year 2007
Case Ongoing No
Case Listing FH-MI-0010 : United States v. Ally Financial Inc. and Ally Bank (E.D. Mich.)
Docket(s)
2:07−cv−00102 (N.D. Ala.) 02/21/2007
FH-AL-0006-9000.pdf | Detail
PACER [Public Access to Court Electronic Records]
General Documents
Complaint 01/12/2007
FH-AL-0006-0001.pdf | Detail
Document Source: PACER [Public Access to Court Electronic Records]
Justice Department Reaches Settlement With Compass Bank Regarding Alleged Discrimination in Lending 01/12/2007
FH-AL-0006-0003.pdf | Detail
Consent Order 02/21/2007 (N.D. Ala.)
FH-AL-0006-0002.pdf | Detail
Document Source: PACER [Public Access to Court Electronic Records]
Judges Blackburn, Sharon Lovelace (N.D. Ala.)
FH-AL-0006-0002 | FH-AL-0006-9000
Monitors/Masters None on record
Plaintiff's Lawyers Gonzales, Alberto (District of Columbia)
FH-AL-0006-0001
Hood, Jack B. (Alabama)
FH-AL-0006-9000
Jackson, Charla (District of Columbia)
FH-AL-0006-0001 | FH-AL-0006-0002 | FH-AL-0006-9000
Kelly, Sharon D. (Alabama)
FH-AL-0006-9000
Kim, Wan J. (District of Columbia)
FH-AL-0006-0001 | FH-AL-0006-0002
Martin, Alice H. (Alabama)
FH-AL-0006-0001 | FH-AL-0006-0002 | FH-AL-0006-9000
Murphy, Donna M. (District of Columbia)
FH-AL-0006-0001 | FH-AL-0006-0002
Rosenbaum, Steven H. (District of Columbia)
FH-AL-0006-0001 | FH-AL-0006-0002 | FH-AL-0006-9000
Simmons, Cindy (Alabama)
FH-AL-0006-0001 | FH-AL-0006-0002
Defendant's Lawyers Barloon, Joseph L. (District of Columbia)
FH-AL-0006-0002
Rogers, Michelle L. (District of Columbia)
FH-AL-0006-0002
Sandler, Andrew L. (District of Columbia)
FH-AL-0006-0002
Other Lawyers None on record

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