Filed Date: March 29, 1999
Closed Date: Jan. 8, 2001
Clearinghouse coding complete
On March 29, 1999 the Department of Justice filed a claim in the U.S. District Court for the District of Delaware against Associates National Bank of Delaware, a consumer credit card bank, alleging that it engaged in discriminatory lending practices.
More specifically, the Department of Justice alleged that the defendant violated the Equal Credit Opportunity Act by discriminating on the basis of national origin. More specifically, the Department of Justice charged that Associates National Bank of Delaware subjected Hispanic borrowers to stricter underwriting standards and less favorable terms and conditions than those applied to non-Hispanic borrowers.
These findings were based on a report filed in March 1997 by the Office of the Comptroller of the Currency after the agency completed a routine bank examination.
The plaintiff filed a proposed consent order on January 8, 2001 that was signed by the court. Under the consent order, the defendant is permanently enjoined from engaging in any act or practice that violates the Equal Credit Opportunity Act. In addition, the defendant will establish a $1.5 million compensation fund to provide damages to Hispanic borrowers who applied for for a credit card between late February 1996 and April 1997. Any remaining funds will go towards a consumer education outreach campaign to Hispanic communities.
This is the first fair lending case brought by the Department of Justice alleging discrimination in connection with credit cards.
Summary Authors
Megan Richardson (3/30/2014)
Byrd, April (Delaware)
Green, David A (Delaware)
Heffernan, Brian F. (District of Columbia)
Kinney, Judith (Delaware)
Lee, Bill Lann (District of Columbia)
Magagna, Joan A. (District of Columbia)
O'Brian, Valerie R. (District of Columbia)
Reno, Janet (District of Columbia)
Rosenthal, Seth (District of Columbia)
Ross, Alexander C. (District of Columbia)
Byrd, April (Delaware)
Green, David A (Delaware)
Heffernan, Brian F. (District of Columbia)
Kinney, Judith (Delaware)
Lee, Bill Lann (District of Columbia)
Magagna, Joan A. (District of Columbia)
O'Brian, Valerie R. (District of Columbia)
Reno, Janet (District of Columbia)
Rosenthal, Seth (District of Columbia)
Ross, Alexander C. (District of Columbia)
Schnee, Carl (Delaware)
Klubes, Benjamin Barnet (District of Columbia)
Sandler, Andrew L. (District of Columbia)
Welch, Edward P. (Delaware)
Last updated May 11, 2022, 8 p.m.
Docket sheet not available via the Clearinghouse.State / Territory: Delaware
Case Type(s):
Fair Housing/Lending/Insurance
Key Dates
Filing Date: March 29, 1999
Closing Date: Jan. 8, 2001
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
Associates National Bank of Delaware, Private Entity/Person
Defendant Type(s):
Case Details
Causes of Action:
Equal Credit Opportunity Act (ECOA), 15 U.S.C. § 1691
Availably 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: $1,500,000.
Order Duration: 2001 - 2001
Content of Injunction:
Develop anti-discrimination policy
Issues
General:
Discrimination-area:
Discrimination-basis:
National origin discrimination
National Origin/Ethnicity: