Filed Date: Dec. 20, 2013
Closed Date: 2017
Clearinghouse coding complete
On December 20, 2013, the Consumer Finance Protection Bureau and the United States Department of Justice filed this 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 plaintiffs 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 was negotiated in a nondiscriminatory manner. In addition, the defendant would compensate certain African-American, Hispanic, and Asian/Pacific Islander borrowers through the establishment of an $80 million dollar settlement fund.
The consent order was to remain in effect dependent on defendant compliance - essentially 2 years if the defendants were in compliance, or 3 years if they were not. On August 2, 2017, the court dismissed the case with prejudice, finding the consent decree completed.
Summary Authors
Megan Richardson (3/11/2014)
Clearinghouse (12/1/2018)
United States v. Compass Bank, Northern District of Alabama (2007)
For PACER's information on parties and their attorneys, see: https://www.courtlistener.com/docket/13088502/parties/united-states-v-ally-financial-inc/
Holder, Eric H. Jr. (District of Columbia)
Levy, Judith Ellen (Michigan)
McQuade, Barbara L. (Michigan)
Benton, Hu A. (Utah)
Devine, Timothy A. (Michigan)
Randon, Mark (Michigan)
Tarnow, Arthur J. (Michigan)
See docket on RECAP: https://www.courtlistener.com/docket/13088502/united-states-v-ally-financial-inc/
Last updated Feb. 18, 2024, 3:10 a.m.
State / Territory: Michigan
Case Type(s):
Fair Housing/Lending/Insurance
Special Collection(s):
Key Dates
Filing Date: Dec. 20, 2013
Closing Date: 2017
Case Ongoing: No
Plaintiffs
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.
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
Ally Financial Inc. and Ally 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: $80,000,000.00
Order Duration: 2013 - 2017
Content of Injunction:
Develop anti-discrimination policy
Issues
General:
Discrimination-area:
Discrimination-basis:
National origin discrimination
Race:
National Origin/Ethnicity: