Filed Date: Jan. 12, 2007
Closed Date: May 31, 2009
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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 agreed to implement policies and procedures designed to prohibit lending distinctions based on marital status and to provide staff with education training. In addition, the defendant agreed to pay up to $1.75 million to certain borrowers who were charged higher interest rates based on their marital status.
The consent order ended in 2009 without any further litigation. The case is now closed.
Summary Authors
Megan Richardson (4/3/2014)
United States v. Ally Financial Inc. and Ally Bank, Eastern District of Michigan (2013)
Blackburn, Sharon Lovelace (Alabama)
Gonzales, Alberto (District of Columbia)
Hood, Jack B. (Alabama)
Jackson, Charla (District of Columbia)
Barloon, Joseph L. (District of Columbia)
Blackburn, Sharon Lovelace (Alabama)
Last updated April 15, 2024, 3:02 a.m.
State / Territory: Alabama
Case Type(s):
Fair Housing/Lending/Insurance
Special Collection(s):
Key Dates
Filing Date: Jan. 12, 2007
Closing Date: May 31, 2009
Case Ongoing: No
Plaintiffs
Plaintiff Description:
United States Department of Justice Civil Rights Division Section on Housing and Civil Enforcement
Plaintiff Type(s):
U.S. Dept of Justice plaintiff
Attorney Organizations:
U.S. Dept. of Justice Civil Rights Division
Public Interest Lawyer: Yes
Filed Pro Se: No
Class Action Sought: No
Class Action Outcome: Not sought
Defendants
Compass Bank, Private Entity/Person
Defendant Type(s):
Case Details
Causes of Action:
Equal Credit Opportunity Act (ECOA), 15 U.S.C. § 1691
Available Documents:
Injunctive (or Injunctive-like) Relief
Outcome
Prevailing Party: Plaintiff
Nature of Relief:
Injunction / Injunctive-like Settlement
Source of Relief:
Form of Settlement:
Court Approved Settlement or Consent Decree
Amount Defendant Pays: $1.75 million
Order Duration: 2007 - 2009
Content of Injunction:
Develop anti-discrimination policy
Issues
General:
Discrimination-area:
Discrimination-basis: