Filed Date: Sept. 13, 2012
Closed Date: 2016
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On September 13, 2012, the United States filed a lawsuit in the U.S. District Court for the Western District of North Carolina against Bank of America, alleging violations of the Fair Housing Act and the Equal Credit Opportunity Act. Specifically, the federal government alleged that Bank of America discriminated against disabled mortgage applicants by requiring all disabled applicants to submit a letter from their doctors indicating the amount of the disability income they received. In some cases, the U.S. claimed that Bank of America required disabled loan applicants to provide information about the nature and severity of their disability as a condition of receiving a mortgage. The federal government further alleged that Bank of America discriminated against applicants receiving public assistance in violation of the Equal Credit Opportunities Act. The federal government asked the court for an injunction as well as monetary damages.
A consent order was submitted on October 10, 2012 and later amended on December 6. The Court (Chief Judge Robert J. Conrad, Jr.) approved the order, which prohibited Bank of America from requiring applicants to submit a letter from a doctor and required Bank of America to institute a monitoring program, train staff on the new policies, maintain a complaint resolution program, and to compensate affected applicants. According to the press release from the Department of Justice, Bank of America paid a minimum of $370 million in the settlement to about 200,000 borrowers. The order was to remain in effect for 42 months following the approval date.
On June 5, 2013, the case was reassigned to Magistrate Judge David S. Cayer. The consent order terminated without any further litigation, and the case is now closed.
Summary Authors
Megan Dolan (6/8/2014)
Sarah Du (11/10/2018)
For PACER's information on parties and their attorneys, see: https://www.courtlistener.com/docket/4305348/parties/united-states-v-bank-of-america/
Conrad, Robert James Jr. (North Carolina)
Keesler, David C. (North Carolina)
Carlson, Lucy G. (District of Columbia)
Holder, Eric H. Jr. (District of Columbia)
Culver, John H. (North Carolina)
Conrad, Robert James Jr. (North Carolina)
Keesler, David C. (North Carolina)
See docket on RECAP: https://www.courtlistener.com/docket/4305348/united-states-v-bank-of-america/
Last updated Jan. 23, 2024, 3:11 a.m.
State / Territory: North Carolina
Case Type(s):
Fair Housing/Lending/Insurance
Special Collection(s):
Key Dates
Filing Date: Sept. 13, 2012
Closing Date: 2016
Case Ongoing: No
Plaintiffs
Plaintiff Description:
The United States on behalf of disabled individuals applying for home mortgage loans while receiving Social Security Disability Insurance.
Plaintiff Type(s):
U.S. Dept of Justice plaintiff
Attorney Organizations:
U.S. Dept. of Justice Civil Rights Division
Public Interest Lawyer: Yes
Filed Pro Se: No
Class Action Sought: No
Class Action Outcome: Not sought
Defendants
Bank of America, Private Entity/Person
Defendant Type(s):
Case Details
Causes of Action:
Fair Housing Act/Fair Housing Amendments Act (FHAA), 42 U.S.C. §§ 3601 et seq.
Equal Credit Opportunity Act (ECOA), 15 U.S.C. § 1691
Available Documents:
Injunctive (or Injunctive-like) Relief
Outcome
Prevailing Party: Plaintiff
Nature of Relief:
Injunction / Injunctive-like Settlement
Source of Relief:
Form of Settlement:
Court Approved Settlement or Consent Decree
Amount Defendant Pays: $370,000,000
Order Duration: 2012 - 2016
Content of Injunction:
Provide antidiscrimination training
Implement complaint/dispute resolution process
Issues
General:
Disability and Disability Rights:
Discrimination-area:
Discrimination-basis:
Disability (inc. reasonable accommodations)
Benefit Source: