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Case Name United States v. Fort Davis State Bank FH-TX-0009
Docket / Court 4:13-cv-00077-RAJ ( W.D. Tex. )
State/Territory Texas
Case Type(s) Fair Housing/Lending/Insurance
Attorney Organization U.S. Dept. of Justice Civil Rights Division
Case Summary
On December 19, 2013, the U.S. Department of Justice (DOJ) filed this suit in the United States District Court for the Western District of Texas against Fort Davis State Bank (FDSB), alleging violations of the Equal Credit ... read more >
On December 19, 2013, the U.S. Department of Justice (DOJ) filed this suit in the United States District Court for the Western District of Texas against Fort Davis State Bank (FDSB), alleging violations of the Equal Credit Opportunity Act, 15 U.S.C. §§ 1691-1691f (ECOA). Specifically, the DOJ claimed that, from at least 2008 to 2010, FDSB engaged in a pattern or practice of discrimination on the basis of national origin because it charged Hispanic borrowers higher interest rates on unsecured consumer loans compared to the rates it charged similarly situated non-Hispanic white borrowers. It asked the court for injunctive relief and an award of monetary damages to all persons harmed by these policies and practices.

That same day, the parties jointly filed a proposed consent order, which the District Court (Judge Robert A. Junell) approved and entered on January 2, 2014. Under the consent order, FDSB did not admit to any violation of ECOA, but agreed to:
  • Implement a monitoring program to ensure compliance with the consent order;
  • Display and provide to borrowers a notice of non-discrimination;
  • Provide ECOA training to its management officials, loan officers, and other relevant employees;
  • Deposit $159,000 into an escrow account for payment to the aggrieved borrowers;
  • Develop a complaint resolution process for customers alleging loan discrimination; and
  • Submit status reports to the DOJ.
On November 3, 2014, the District Court (Judge Robert A. Junell) entered an order administratively closing the case but retaining jurisdiction to enforce the terms of the consent order. As of June 8, 2015, the case is ongoing: the consent order will remain in effect until early 2017 and can be extended by the DOJ for good cause.

Robert Lake - 06/08/2015


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Issues and Causes of Action
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Issues
Content of Injunction
Develop anti-discrimination policy
Discrimination Prohibition
Implement complaint/dispute resolution process
Monitoring
Provide antidiscrimination training
Reporting
Required disclosure
Defendant-type
Bank or credit provider
Discrimination-area
Lending
Discrimination-basis
National origin discrimination
General
Disparate Impact
Disparate Treatment
Predatory lending
National Origin/Ethnicity
Hispanic
Plaintiff Type
U.S. Dept of Justice plaintiff
Causes of Action Equal Credit Opportunity Act (ECOA), 15 U.S.C. § 1691
Defendant(s) Fort Davis State Bank
Plaintiff Description Plaintiff is the United States Attorney's Office in the Western District of Texas and the Department of Justice's 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 2014 - 2017
Case Closing Year n/a
Case Ongoing Yes
Docket(s)
4:13-cv-00077-RAJ (W.D. Tex.) 11/05/2014
FH-TX-0009-9000.pdf | Detail
PACER [Public Access to Court Electronic Records]
General Documents
Complaint 12/19/2013
FH-TX-0009-0001.pdf | Detail
Document Source: PACER [Public Access to Court Electronic Records]
Consent Order 01/02/2014 (W.D. Tex.)
FH-TX-0009-0003.pdf | Detail
Document Source: PACER [Public Access to Court Electronic Records]
Order 11/05/2014 (W.D. Tex.)
FH-TX-0009-0004.pdf | Detail
Document Source: PACER [Public Access to Court Electronic Records]
Judges Junell, Robert A. (W.D. Tex.)
FH-TX-0009-0003 | FH-TX-0009-0004 | FH-TX-0009-9000
Monitors/Masters None on record
Plaintiff's Lawyers Holder, Eric H. Jr. (District of Columbia)
FH-TX-0009-0001
O'Beirne, Patricia (District of Columbia)
FH-TX-0009-0001 | FH-TX-0009-0003 | FH-TX-0009-9000
Paniszczyn, John Francis (District of Columbia)
FH-TX-0009-0001 | FH-TX-0009-0003 | FH-TX-0009-9000
Pitman, Robert Lee (Texas)
FH-TX-0009-0001 | FH-TX-0009-0003
Rosenbaum, Steven H. (District of Columbia)
FH-TX-0009-0001 | FH-TX-0009-0003
Samuels, Jocelyn (District of Columbia)
FH-TX-0009-0001 | FH-TX-0009-0003
Seward, Jon M. (District of Columbia)
FH-TX-0009-0001 | FH-TX-0009-0003
Defendant's Lawyers Neeley, Karen M. (Texas)
FH-TX-0009-0003 | FH-TX-0009-9000
Other Lawyers None on record

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