On June 17, 2011, the United States filed a lawsuit in the United States District Court for the Western District of Texas, under the Equal Credit Opportunity Act, 15 U.S.C. §§1691-1691f ("ECOA") against the Nixon State Bank. The Nixon State Bank is a community-based bank in Nixon, Texas that ...
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On June 17, 2011, the United States filed a lawsuit in the United States District Court for the Western District of Texas, under the Equal Credit Opportunity Act, 15 U.S.C. §§1691-1691f ("ECOA") against the Nixon State Bank. The Nixon State Bank is a community-based bank in Nixon, Texas that offers a range of loan products, including mortgage loans, consumer loans, commercial loans, and agriculture loans. The U.S. alleged that in making these loans, the bank exhibited a pattern or practice of anti-Hispanic discrimination, providing loans to Hispanics at higher rates than to non-Hispanics, without justification.
Settlement negotiations preceded the filing of the complaint, and on June 21, 2011, the District Court (Judge Fred Biery) approved a consent order, under which the defendant agreed to develop and establish uniform pricing policies and procedures designed to ensure nondiscriminatory pricing, and to numerous other implementation provisions, including fair credit training, systemic monitoring, complaint resolution processes, and $91,000 in damages to aggrieved persons. The provisions of the order were scheduled to last 4 and 1/4 years.
- 10/20/2012
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