University of Michigan Law School
Civil Rights Litigation Clearinghouse
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Case Name United States v. Bank of America FH-NC-0002
Docket / Court 3:12-cv-00605-RJC-DSC ( W.D.N.C. )
State/Territory North Carolina
Case Type(s) Disability Rights-Pub. Accom.
Fair Housing/Lending/Insurance
Attorney Organization U.S. Dept. of Justice Civil Rights Division
Case Summary
On September 13, 2012, the United States filed a lawsuit in the U.S. District Court for the Western District of North Carolina against Bank of America, alleging violations of the Fair Housing Act and the Equal Credit Opportunity Act. Specifically, the federal government alleged that Bank of America ... read more >
On September 13, 2012, the United States filed a lawsuit in the U.S. District Court for the Western District of North Carolina against Bank of America, alleging violations of the Fair Housing Act and the Equal Credit Opportunity Act. Specifically, the federal government alleged that Bank of America discriminated against disabled mortgage applicants by requiring all disabled applicants to submit a letter indicating the amount of the disability income and that it would continue for at least three years. In some cases, the plaintiffs claimed that Bank of America required disabled loan applicants to provide information about the nature and severity of their disability as a condition of receiving a mortgage. The federal government further alleged that Bank of America discriminated against applicants receiving public assistance in violation of the Equal Credit Opportunities Act. The federal government asked the court for an injunction as well as monetary damages.

On December 5, 2012, the Court (Chief Judge Robert J. Conrad, Jr.) signed a consent order which prohibited Bank of America from requiring applicants to submit a letter from a doctor and required Bank of America to institute a monitoring program, train staff on the new policies, maintain a complaint resolution program, and to compensate affected applicants. According to the press release from the Department of Justice, Bank of America paid a minimum of $370 million in the settlement to about 200,000 borrowers.

Megan Dolan - 06/08/2014


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Issues and Causes of Action
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Issues
Benefit Source
SSDI
Content of Injunction
Discrimination Prohibition
Implement complaint/dispute resolution process
Monitoring
Provide antidiscrimination training
Recordkeeping
Defendant-type
Bank or credit provider
Disability
disability, unspecified
Discrimination-area
Lending
Discrimination-basis
Disability (inc. reasonable accommodations)
General
Housing
Other Banking
Pattern or Practice
Plaintiff Type
U.S. Dept of Justice plaintiff
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) Bank of America
Plaintiff Description The United States on behalf of disabled individuals applying for home mortgage loans while receiving Social Security Disability Insurance.
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 2012 - 2016
Case Closing Year 2012
Case Ongoing Yes
Additional Resources
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Case Studies Insurer Must Pay $100.5 Million in Redlining Case
The New York Times
Written: Oct. 27, 1998
By: Joseph B. Treaster
[ Detail ] [ External Link ]

  Nationwide Settles Virginia Redlining Suit
Property Casualty 360
Written: May. 06, 2000
By: Amanda Levin
[ Detail ] [ External Link ]

  The Origins of Fair Lending Litigation
Written: Dec. 04, 2008
By: Andrew Nash (Washington University in St. Louis)
[ Detail ] [ PDF ] [ External Link ]

Docket(s)
3:12−cv−00605 (W.D.N.C.) 06/05/2013
FH-NC-0002-9000.pdf | Detail
PACER [Public Access to Court Electronic Records]
General Documents
Justice Department Reaches Settlement with Bank of America to Resolve Allegations of Discrimination Against Recipients of Disability Income 09/13/2012
FH-NC-0002-0001.pdf | Detail
Complaint 09/13/2012
FH-NC-0002-0002.pdf | Detail
Document Source: PACER [Public Access to Court Electronic Records]
Consent Order 09/13/2012 (W.D.N.C.)
FH-NC-0002-0003.pdf | Detail
Document Source: PACER [Public Access to Court Electronic Records]
Judges Conrad, Robert James Jr. (W.D.N.C.)
FH-NC-0002-9000
Keesler, David C. (W.D.N.C.) [Magistrate]
FH-NC-0002-9000
Monitors/Masters None on record
Plaintiff's Lawyers Carlson, Lucy G. (District of Columbia)
FH-NC-0002-0002 | FH-NC-0002-0003
Holder, Eric H. Jr. (District of Columbia)
FH-NC-0002-0002
Perez, Thomas E. (District of Columbia)
FH-NC-0002-0002 | FH-NC-0002-0003
Rosenbaum, Steven H. (District of Columbia)
FH-NC-0002-0002 | FH-NC-0002-0003
Seward, Jon M. (District of Columbia)
FH-NC-0002-0002 | FH-NC-0002-0003
Taylor, Paul B. (North Carolina)
FH-NC-0002-0002 | FH-NC-0002-0003 | FH-NC-0002-9000
Tompkins, Anne M. (North Carolina)
FH-NC-0002-0002 | FH-NC-0002-0003
Defendant's Lawyers Culver, John H. (North Carolina)
FH-NC-0002-9000
Schulman, Phillip L. (District of Columbia)
FH-NC-0002-0003 | FH-NC-0002-9000
Other Lawyers None on record

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