University of Michigan Law School
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Case Name United States v. Ally Financial Inc. and Ally Bank FH-MI-0010
Docket / Court 2:13-cv-15180-AJT-MAR ( E.D. Mich. )
State/Territory Michigan
Case Type(s) Fair Housing/Lending/Insurance
Attorney Organization U.S. Dept. of Justice Civil Rights Division
Case Summary
On December 20, 2013 the Consumer Finance Protection Bureau and the United States Department of Justice filed a lawsuit in the U.S. District Court for the Eastern District of Michigan against a bank, alleging that it engaged in discriminatory lending practices. The plaintiffs alleged that as a ... read more >
On December 20, 2013 the Consumer Finance Protection Bureau and the United States Department of Justice filed a lawsuit in the U.S. District Court for the Eastern District of Michigan 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, African-American, Asian/Pacific Islander, and Hispanic borrowers unfairly paid higher prices for their automobile loans than non-Hispanic White borrowers. The complaint asked the court for a declaratory judgment, injunctive relief and monetary damages.

Specifically, the plaintiffs alleged that the defendant allowed its automobile dealers to set wholesale loan prices unrelated to credit risk characteristics and loan terms. The defendant did not require automobile dealers to justify or document the reasons for the amount of broker fees and prices set above the par rate; failed to monitor for disparities based on race or national original because of its policies and practices; and created a financial incentive for automobile dealers to charge higher fees and interest rates.

The plaintiff filed a proposed consent order that was entered by the Court (Magistrate Judge Mark A. Randon) on December 23, 2013. Under the consent order, the defendant agreed to implement policies and procedures designed to ensure that the dealer markup on automobile retail installment contracts is negotiated in a nondiscriminatory manner. In addition, the defendant will compensate certain African-American, Hispanic, and Asian/Pacific Islander borrowers through the establishment of an $80 million dollar settlement fund.

Megan Richardson - 03/11/2014


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Issues and Causes of Action
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Issues
Content of Injunction
Develop anti-discrimination policy
Monitoring
Defendant-type
Bank or credit provider
Discrimination-area
Lending
Discrimination-basis
National origin discrimination
Race discrimination
General
Predatory lending
National Origin/Ethnicity
Hispanic
Plaintiff Type
U.S. Dept of Justice plaintiff
Race
Asian/Pacific Islander
Black
Causes of Action Equal Credit Opportunity Act (ECOA), 15 U.S.C. ยง 1691
Defendant(s) Ally Financial Inc. and Ally Bank
Plaintiff Description Plaintiff is the Consumer Financial Protection Bureau, the United States Attorney's Office in the Eastern District of Michigan, and the United States Department of Justice Civil Rights Division Housing and Civil Enforcement Section.
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 2013 - 2014
Case Closing Year 2013
Case Ongoing No
Case Listing FH-AL-0006 : United States v. Compass Bank (N.D. Ala.)
Docket(s)
2:13-cv-15180-AJT-MAR (E.D. Mich.) 12/23/2013
FH-MI-0010-9000.pdf | Detail
PACER [Public Access to Court Electronic Records]
General Documents
Complaint 12/20/2013
FH-MI-0010-0001.pdf | Detail
Document Source: PACER [Public Access to Court Electronic Records]
Consent Order [Granting Injunctive Relief] 12/23/2013 (E.D. Mich.)
FH-MI-0010-0002.pdf | Detail
Document Source: PACER [Public Access to Court Electronic Records]
Judges Randon, Mark Court not on record
FH-MI-0010-9000
Tarnow, Arthur J. (E.D. Mich.)
FH-MI-0010-0002 | FH-MI-0010-9000
Monitors/Masters None on record
Plaintiff's Lawyers Holder, Eric H. Jr. (District of Columbia)
FH-MI-0010-0001 | FH-MI-0010-0002
Levy, Judith Ellen (Michigan)
FH-MI-0010-0001 | FH-MI-0010-0002 | FH-MI-0010-9000
McQuade, Barbara L. (Michigan)
FH-MI-0010-0001 | FH-MI-0010-0002
Montag, Coty R (District of Columbia)
FH-MI-0010-0001 | FH-MI-0010-0002
Mosteller, Daniel P. (District of Columbia)
FH-MI-0010-0001 | FH-MI-0010-0002
Rosenbaum, Steven H. (District of Columbia)
FH-MI-0010-0001 | FH-MI-0010-0002
Samuels, Jocelyn (District of Columbia)
FH-MI-0010-0001 | FH-MI-0010-0002
Defendant's Lawyers Benton, Hu A. (Utah)
FH-MI-0010-0002
Devine, Timothy A. (Michigan)
FH-MI-0010-9000
Neaton, Robert A. (Michigan)
FH-MI-0010-0002
Other Lawyers None on record

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