The Department of Justice filed suit in the U.S. District Court for the District of South Dakota on November 16, 1993, alleging violations of the Fair Housing Act, 42 U.S.C. §§ 3601-3619, and the Equal Credit Opportunity Act, 15 U.S.C. §§ 1691-1691f. The DOJ alleged that the Defendant-lender was the only commercial lender operating in an area principally populated by Native Americans, and that the Defendant had a policy of not extending loans tied to collateral that would be subject to tribal courts. The DOJ also alleged that the Defendant-lender imposed numerous discriminatory conditions on loans that it extended to Native American borrowers.

The parties entered a consent decree on January 21, 1994. The consent decree required the Defendant-lender to refrain from discriminating against Native Americans; in particular, the agreement forbade the Defendant from discriminating against prospective borrowers based on the fact that their collateralized property might be subject to tribal court jurisdiction. The consent decree also required the Defendant-lender to market its products to Native Americans, to recruit Native Americans for employment and promotion, and to apply to be certified as an approved lender by the Bureau of Indian Affairs.

Pursuant to a motion by the DOJ, the District Court dismissed the case on March 7, 1997.

Andrew Nash - 06/02/2008


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