The Department of Justice filed suit on August 22, 1994, in the U.S. District Court for the District of Columbia, 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, the largest private lending institution in the Washington, D.C. metropolitan area, had expanded its business operations in recent years to accommodate growth in predominantly white areas while intentionally avoid[ing] the servicing of identifiably African American residential areas. The DOJ alleged that the Defendants' practices had the effect of redlining and represented race-based denials of credit for home purchases in violation of the FHA.

The same day the Complaint was filed U.S. District Court Judge June L. Green approved a consent decree between the parties. Under the consent decree, Chevy Chase denied any violation of federal anti-discrimination laws but agreed to invest $11 million in predominantly black neighborhoods, including $7 million specifically for home equity loans. The bank also agreed to market its products directly to predominantly black areas in the Washington metro region, to implement a training program for its staff, and to recruit minority employees to help it better serve Washington's black population. The District Court retained jurisdiction over the case for five years after the consent decree was entered. The case is now closed.

Andrew Nash - 06/02/2008


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