On December 19, 2013, the U.S. Department of Justice (DOJ) filed this suit in the United States District Court for the Western District of Texas against Fort Davis State Bank (FDSB), alleging violations of the Equal Credit Opportunity Act, 15 U.S.C. §§ 1691-1691f (ECOA). Specifically, the DOJ claimed that, from at least 2008 to 2010, FDSB engaged in a pattern or practice of discrimination on the basis of national origin by charging Hispanic borrowers higher interest rates on unsecured consumer loans compared to the rates it charged similarly situated non-Hispanic, white borrowers. DOJ asked the court for injunctive relief and an award of monetary damages to all persons harmed by these policies and practices.

That same day, the parties jointly filed a proposed consent order, which the District Court (Judge Robert A. Junell) approved and entered on January 2, 2014. Under the consent order, FDSB did not admit to any violation of ECOA, but agreed to:

• Implement a monitoring program to ensure compliance with the consent order;
• Display and provide to borrowers a notice of non-discrimination;
• Provide ECOA training to its management officials, loan officers, and other relevant employees;
• Deposit $159,000 into an escrow account for payment to the aggrieved borrowers;
• Develop a complaint resolution process for customers alleging loan discrimination; and
• Submit status reports to the DOJ.

On November 3, 2014, the District Court (Judge Robert A. Junell) entered an order administratively closing the case but retaining jurisdiction to enforce the terms of the consent order.

The consent order remained in effect until early 2017. Since there has been no substantive docket activity after 2014, the case is presumably closed.

Robert Lake - 06/08/2015
Hope Brinn - 11/02/2018


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