University of Michigan Law School
Civil Rights Litigation Clearinghouse
new search
page permalink
Case Name United States v. First American Bank FH-IL-0016
Docket / Court 1:04-cv-04585 ( N.D. Ill. )
State/Territory Illinois
Case Type(s) Fair Housing/Lending/Insurance
Attorney Organization U.S. Dept. of Justice Civil Rights Division
Case Summary
On July 13, 2004, the Department of Justice filed suit in the U.S. District Court for the Northern District of Illinois against First American Bank under the Fair Housing Act, 42 U.S.C. 3601-3619, and the Equal Credit Opportunity Act, 15 U.S.C. 1691. The DOJ alleged that the bank engaged in a ... read more >
On July 13, 2004, the Department of Justice filed suit in the U.S. District Court for the Northern District of Illinois against First American Bank under the Fair Housing Act, 42 U.S.C. 3601-3619, and the Equal Credit Opportunity Act, 15 U.S.C. 1691. The DOJ alleged that the bank engaged in a practice called redlining by unlawfully failing to market and provide its lending products and services on an equal basis to minority neighborhoods in Chicago and Kankakee, Illinois. The DOJ specifically alleged that First American Bank intentionally failed to serve heavily African-American and Hispanic communities.

The parties entered a settlement agreement that was approved by the court (Judge Der−Yeghiayan) on July 16, 2004. Under the settlement agreement terms, First American Bank is enjoined from engaging in any practice which discriminates on the basis of race, color, or national origin in any aspect of a residential real estate-related or credit transaction.

First American Bank agreed to open four new branch offices in minority communities within a three year-term. First American Bank will also invest $5 million in a special financing program for home mortgage lending, $400,000 in marketing and outreach, and $300,000 in consumer education and financial literacy programs.

The order is designed to last five years. However, both parties agreed that if the Defendant-lender fulfilled all requirements of the order within four years, it has the option to terminate the order.

On February 13, 2009 both parties filed an agreement to terminate the consent order, which was agreed to by the court (Judge Der−Yeghiayan) on February 19, 2009.

Similar cases brought forth by the Department of Justice against lenders due to allegations of redlining include United States v. Centier Bank, United States v. Citizens Republic Bancorp, Inc., and United States v. Old Kent Financial Corporation.

Megan Richardson - 04/03/2014


compress summary

- click to show/hide ALL -
Issues and Causes of Action
click to show/hide detail
Issues
Content of Injunction
Develop anti-discrimination policy
Develop anti-discrimination policy
Monitoring
Monitoring
Defendant-type
Bank or credit provider
Bank or credit provider
Discrimination-area
Lending
Lending
Discrimination-basis
National origin discrimination
Race discrimination
Race discrimination
General
Predatory lending
National Origin/Ethnicity
Hispanic
Hispanic
Plaintiff Type
U.S. Dept of Justice plaintiff
U.S. Dept of Justice plaintiff
Race
Black
Black
Causes of Action Fair Housing Act/Fair Housing Amendments Act (FHAA), 42 U.S.C. §§ 3601 et seq.
Equal Credit Opportunity Act (ECOA), 15 U.S.C. § 1691
Defendant(s) First American 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 2004 - 2009
Case Closing Year 2004
Case Ongoing No
Docket(s)
1:04−cv−04585 (N.D. Ill.) 02/19/2009
FH-IL-0016-9000.pdf | Detail
PACER [Public Access to Court Electronic Records]
General Documents
Chicago Bank Charged With Discriminatory "Redlining" Lending 07/13/2004
FH-IL-0016-0001.pdf | Detail
Complaint 07/13/2004
FH-IL-0016-0003.pdf | Detail
Document Source: PACER [Public Access to Court Electronic Records]
Judgment in a Civil Case 07/16/2004 (N.D. Ill.)
FH-IL-0016-0004.pdf | Detail
Document Source: PACER [Public Access to Court Electronic Records]
Summary of $5.7 Million Consent Order 07/19/2004 (N.D. Ill.)
FH-IL-0016-0002.pdf | Detail
Joint Motion to Terminate Consent Order 02/13/2009
FH-IL-0016-0005.pdf | Detail
Document Source: PACER [Public Access to Court Electronic Records]
Order 02/13/2009 (N.D. Ill.)
FH-IL-0016-0006.pdf | Detail
Document Source: PACER [Public Access to Court Electronic Records]
Judges Der-Yeghiayan, Samuel (N.D. Ill.)
FH-IL-0016-0006
Monitors/Masters None on record
Plaintiff's Lawyers Acosta, R. Alexander (District of Columbia)
FH-IL-0016-0003
Ashcroft, John (District of Columbia)
FH-IL-0016-0003
Dougherty , Burtis M. (District of Columbia)
FH-IL-0016-0003 | FH-IL-0016-0005 | FH-IL-0016-9000
Fitzgerald, Patrick J. (Illinois)
FH-IL-0016-0003 | FH-IL-0016-0005
Laser, Joan (Illinois)
FH-IL-0016-0003 | FH-IL-0016-0005 | FH-IL-0016-9000
Murphy, Donna M. (District of Columbia)
FH-IL-0016-0003 | FH-IL-0016-0005
O'Brian, Valerie R. (District of Columbia)
FH-IL-0016-0003
Rosenbaum, Steven H. (District of Columbia)
FH-IL-0016-0003
Defendant's Lawyers Feld, Jonathan S. (Illinois)
FH-IL-0016-9000
Rahilly, Sean (Illinois)
FH-IL-0016-0005
Other Lawyers None on record

- click to show/hide ALL -

new search
page permalink

- top of page -