The Department of Justice filed suit on May 19, 2004, against the Defendant-lender in the U.S. District Court for the Eastern District of Michigan, and the parties entered a settlement agreement that same day. The DOJ filed suit under the Fair Housing Act, 42 U.S.C. 3601-3619, and the Equal Credit Opportunity Act, 15 U.S.C. 1691. The DOJ alleged that Old Kent had engaged in a race-based pattern of locating or acquiring new addresses. The DOJ cited statistics in its Compliant indicating that the Defendant-lender had deliberately expanded its business in the Detroit metropolitan area to avoid entering areas lived in by a substantial number of minorities.

Under the settlement agreement entered into by the parties, the Defendant-lender agreed to conduct outreach and marketing efforts among Detroit's African-American community; to open three branch offices in predominantly African-American neighborhoods during the three year term of the settlement agreement; and to seek out African-American employees for hire and advancement. The agreement was in effect from 2004-2007, and the case is now closed.

Similar cases brought forth by the Department of Justice against lenders due to allegations of redlining include United States v. Centier Bank, United States v. First American Bank, and United States v. Citizens Republic Bancorp, Inc..

Andrew Nash - 06/02/2008
Megan Richardson - 04/14/2014


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