University of Michigan Law School
Civil Rights Litigation Clearinghouse
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Case Name US V. ASSOCIATES NATIONAL BANK FH-DE-0002
Docket / Court 1:99-cv-00196-SLR ( D. Del. )
State/Territory Delaware
Case Type(s) Fair Housing/Lending/Insurance
Attorney Organization U.S. Dept. of Justice Civil Rights Division
Case Summary
On March 29, 1999 the Department of Justice filed a claim in the U.S. District Court for the District of Delaware against Associates National Bank of Delaware, a consumer credit card bank, alleging that it engaged in discriminatory lending practices.

More specifically, the Department of ... read more >
On March 29, 1999 the Department of Justice filed a claim in the U.S. District Court for the District of Delaware against Associates National Bank of Delaware, a consumer credit card bank, alleging that it engaged in discriminatory lending practices.

More specifically, the Department of Justice alleged that the defendant violated the Equal Credit Opportunity Act by discriminating on the basis of national origin. More specifically, the Department of Justice charged that Associates National Bank of Delaware subjected Hispanic borrowers to stricter underwriting standards and less favorable terms and conditions than those applied to non-Hispanic borrowers.

These findings were based on a report filed in March 1997 by the Office of the Comptroller of the Currency after the agency completed a routine bank examination.

The plaintiff filed a proposed consent order on January 8, 2001 that was signed by the court. Under the consent order, the defendant is permanently enjoined from engaging in any act or practice that violates the Equal Credit Opportunity Act. In addition, the defendant will establish a $1.5 million compensation fund to provide damages to Hispanic borrowers who applied for for a credit card between late February 1996 and April 1997. Any remaining funds will go towards a consumer education outreach campaign to Hispanic communities.

This is the first fair lending case brought by the Department of Justice alleging discrimination in connection with credit cards.

Megan Richardson - 03/30/2014


compress summary

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Issues and Causes of Action
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Issues
Content of Injunction
Develop anti-discrimination policy
Defendant-type
Bank or credit provider
Discrimination-area
Lending
Discrimination-basis
National origin discrimination
General
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. ยง 1691
Defendant(s) Associates National Bank of Delaware
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 2001 - 2001
Case Closing Year 2001
Case Ongoing No
Docket(s)
1:99−cv−00196 (D. Del.) 09/21/2001
FH-DE-0002-9000.pdf | Detail
PACER [Public Access to Court Electronic Records]
General Documents
[Case Summary]
FH-DE-0002-0001.pdf | Detail
Document Source: U.S. Dep't of Justice, Civil Rights Division, Housing and Civil Enforcement
Complaint
FH-DE-0002-0002.pdf | Detail
Document Source: U.S. Dep't of Justice, Civil Rights Division, Housing and Civil Enforcement
Credit Card Company Sued by Justice Department for Discriminating Against Hispanics 03/29/1999
FH-DE-0002-0005.pdf | Detail
Document Source: U.S. Dep't of Justice, Civil Rights Division, Housing and Civil Enforcement
Settlement Agreement Between United States of America and Associates National Bank 01/08/2001
FH-DE-0002-0003.pdf | Detail
Document Source: U.S. Dep't of Justice, Civil Rights Division, Housing and Civil Enforcement
Justice Department Settles Lending Discrimination Suit Against Associates National Bank [Press Release] 01/08/2001
FH-DE-0002-0004.pdf | Detail
Document Source: U.S. Dep't of Justice, Civil Rights Division, Housing and Civil Enforcement
Judges None on record
Monitors/Masters None on record
Plaintiff's Lawyers Byrd, April (Delaware)
FH-DE-0002-9000
Green, David A (Delaware)
FH-DE-0002-0002 | FH-DE-0002-9000
Heffernan, Brian F. (District of Columbia)
FH-DE-0002-0002
Kinney, Judith (Delaware)
FH-DE-0002-0003 | FH-DE-0002-9000
Lee, Bill Lann (District of Columbia)
FH-DE-0002-0002 | FH-DE-0002-0003
Magagna, Joan A. (District of Columbia)
FH-DE-0002-0002 | FH-DE-0002-0003
O'Brian, Valerie R. (District of Columbia)
FH-DE-0002-0002 | FH-DE-0002-0003
Reno, Janet (District of Columbia)
FH-DE-0002-0002 | FH-DE-0002-0003
Rosenthal, Seth (District of Columbia)
FH-DE-0002-0003
Ross, Alexander C. (District of Columbia)
FH-DE-0002-0002
Schnee, Carl (Delaware)
FH-DE-0002-0002
Defendant's Lawyers Klubes, Benjamin Barnet (District of Columbia)
FH-DE-0002-0003
Sandler, Andrew L. (District of Columbia)
FH-DE-0002-0003
Welch, Edward P. (Delaware)
FH-DE-0002-9000
Welch, Jessica L. (Delaware)
FH-DE-0002-9000
Other Lawyers None on record

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