Case: United States v. Compass Bank

2:07-cv-00102 | U.S. District Court for the Northern District of Alabama

Filed Date: Jan. 12, 2007

Closed Date: May 31, 2009

Clearinghouse coding complete

Case Summary

On January 12, 2007 the United States Department of Justice filed a lawsuit in the U.S. District Court for the Northern District of Alabama against a bank, alleging that it engaged in discriminatory lending practices. The plaintiffs alleged that as a result of the defendant's policies and practices, some borrowers unfairly paid higher prices for their automobile loans based on their marital status. Specifically, the plaintiffs allege that the defendant instructed its automobile dealers that it …

On January 12, 2007 the United States Department of Justice filed a lawsuit in the U.S. District Court for the Northern District of Alabama against a bank, alleging that it engaged in discriminatory lending practices. The plaintiffs alleged that as a result of the defendant's policies and practices, some borrowers unfairly paid higher prices for their automobile loans based on their marital status.

Specifically, the plaintiffs allege that the defendant instructed its automobile dealers that it could price loans to non-married co-applicants at higher prices unrelated to credit risk characteristics and loan terms. In some instances, the defendant specifically instructed automobile dealers to prevent non-married co-applicants from applying for a loan altogether.

DOJ's allegations are based from information acquired by the Federal Reserve Bank during a routine examination of Compass Bank in 2003.

The plaintiff filed a proposed consent order that was entered by the Court (Judge Sharon Lovelace Blackburn) on February 21, 2007. Under the consent order, the defendant agreed to implement policies and procedures designed to prohibit lending distinctions based on marital status and to provide staff with education training. In addition, the defendant agreed to pay up to $1.75 million to certain borrowers who were charged higher interest rates based on their marital status.

The consent order ended in 2009 without any further litigation. The case is now closed.

Summary Authors

Megan Richardson (4/3/2014)

Related Cases

United States v. Ally Financial Inc. and Ally Bank, Eastern District of Michigan (2013)

People


Judge(s)

Blackburn, Sharon Lovelace (Alabama)

Attorneys(s) for Plaintiff

Gonzales, Alberto (District of Columbia)

Hood, Jack B. (Alabama)

Jackson, Charla (District of Columbia)

Kelly, Sharon D. (Alabama)

Kim, Wan J. (District of Columbia)

Martin, Alice H. (Alabama)

Murphy, Donna M. (District of Columbia)

Rosenbaum, Steven H. (District of Columbia)

Simmons, Cindy (Alabama)

Judge(s)

Blackburn, Sharon Lovelace (Alabama)

Attorneys(s) for Plaintiff

Gonzales, Alberto (District of Columbia)

Hood, Jack B. (Alabama)

Jackson, Charla (District of Columbia)

Kelly, Sharon D. (Alabama)

Kim, Wan J. (District of Columbia)

Martin, Alice H. (Alabama)

Murphy, Donna M. (District of Columbia)

Rosenbaum, Steven H. (District of Columbia)

Simmons, Cindy (Alabama)

Attorneys(s) for Defendant

Barloon, Joseph L. (District of Columbia)

Rogers, Michelle L. (District of Columbia)

Sandler, Andrew L. (District of Columbia)

Documents in the Clearinghouse

Document

2:07-cv-00102

Docket

United States of America v. Compass Bank

Feb. 21, 2007

Feb. 21, 2007

Docket
1

2:07-cv-00102

Complaint

United States of America v. Compass Bank

Jan. 12, 2007

Jan. 12, 2007

Complaint

2:07-cv-00102

Justice Department Reaches Settlement With Compass Bank Regarding Alleged Discrimination in Lending

No Court

Jan. 12, 2007

Jan. 12, 2007

Press Release
3

2:07-cv-00102

Consent Order

United States of America v. Compass Bank

Feb. 21, 2007

Feb. 21, 2007

Order/Opinion

Resources

Docket

Last updated Aug. 8, 2022, 3:20 a.m.

ECF Number Description Date Link Date / Link
1

COMPLAINT against Compass Bank , filed by United States of America.(MAA, ) (Entered: 01/17/2007)

Jan. 12, 2007

Jan. 12, 2007

2

ORDER REASSIGNING CASE. Case reassigned to Judge Sharon Lovelace Blackburn for all further proceedings. Judge James H Hancock no longer assigned to case (MAA, ) (Entered: 01/17/2007)

Jan. 17, 2007

Jan. 17, 2007

3

CONSENT ORDER that within 90 days the dft shall implement the provisions as set out in this Agreement. The requirements of this Agreement shall be in effect until 5/31/09. This civil action is dismissed without prejudice; the Court shall retain juriscdiction to enforce its terms. Each party shall bear its own costs. Signed by Judge Sharon Lovelace Blackburn on 2/21/2007. (KAM, ) (Entered: 02/21/2007)

Feb. 21, 2007

Feb. 21, 2007

Case Details

State / Territory: Alabama

Case Type(s):

Fair Housing/Lending/Insurance

Special Collection(s):

Multi-LexSum (in sample)

Key Dates

Filing Date: Jan. 12, 2007

Closing Date: May 31, 2009

Case Ongoing: No

Plaintiffs

Plaintiff Description:

United States Department of Justice Civil Rights Division Section on Housing and Civil Enforcement

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

Compass Bank, Private Entity/Person

Defendant Type(s):

Bank or credit provider

Case Details

Causes of Action:

Equal Credit Opportunity Act (ECOA), 15 U.S.C. § 1691

Availably Documents:

Trial Court Docket

Complaint (any)

Monetary Relief

Injunctive (or Injunctive-like) Relief

Outcome

Prevailing Party: Plaintiff

Nature of Relief:

Injunction / Injunctive-like Settlement

Damages

Source of Relief:

Settlement

Form of Settlement:

Court Approved Settlement or Consent Decree

Amount Defendant Pays: $1.75 million

Order Duration: 2007 - 2009

Content of Injunction:

Develop anti-discrimination policy

Issues

General:

Predatory lending

Discrimination-area:

Lending

Discrimination-basis:

Family discrimination