Filed Date: May 31, 2023
Case Ongoing
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On May 31, 2023, the Civil Rights Division of the U.S. Department of Justice filed this lawsuit against ESSA Bank & Trust in the District Court for the Eastern District of Pennsylvania. The complaint claimed that ESSA’s policies and practices violated the Fair Housing Act (“FHA”) and the Equal Credit Opportunity Act (“ECOA”) by redlining majority-Black and Hispanic communities and discouraging prospective applicants from applying for credit on the basis of race and national origin. The DOJ requested that the Court grant declaratory and injunctive relief, monetary damages, and civil penalties available under the FHA and ECOA. Included in the Complaint, the DOJ submitted a proposed Consent Order for approval by the Court, which was signed by both parties prior to filing.
In July 2021, the Federal Deposit Insurance Corporation (“FDIC”) concluded that there was reason to believe that ESSA engaged in illegal credit discrimination on the basis of race. The FDIC referred the matter to the US Attorney General on June 6, 2022. Then, on August 15, 2022, the US DOJ informed ESSA that it had initiated an investigation into lending discrimination by the bank. The findings from the investigation brought about this lawsuit.
On June 9, 2023, Judge Michael M. Maylson issued the Consent Order that was attached to the Complaint. The Consent Order enjoined ESSA from further engaging in discriminatory lending practices on the basis of race, color, or national origin and required that ESSA conduct a detailed assessment of its fair lending program and submit a Report and Compliance Plan to the DOJ. The Order provided that ESSA must provide annual training to all employees, submit a Community Credit Needs Assessment for majority-Black and Hispanic census tracts within its lending area, and hire addition mortgage loan officers and a full-time Community Development Officer with the primary responsibility of overseeing the development of the Bank’s lending in majority-Black and Hispanic census tracts. The Consent Order required that ESSA invest a minimum of $2.92 million in a loan subsidy fund to increase credit for home mortgage loans, home improvement loans, and home refinance loans for consumers applying for loans in majority-Black and Hispanic census tracts and that ESSA spend at least $250,000 over the term of this Consent Order on advertising, outreach, consumer financial education, and credit counseling focused on majority-Black and Hispanic census tracts. The lawsuit was marked as closed when the Order was signed, but requirements of the Consent Order would remain in effect for five years.
Pursuant to the Order, the Court will retain jurisdiction to enforce the terms for a period of two years, which will end on June 9, 2025.
Summary Authors
Marisa London (4/22/2025)
For PACER's information on parties and their attorneys, see: https://www.courtlistener.com/docket/67454392/parties/united-states-v-essa-bank-trust/
Baylson, Michael M. (Pennsylvania)
DAVID, GREGORY B. (Pennsylvania)
Hussain, Varda (Pennsylvania)
COFFINA, SCOTT A. (Pennsylvania)
Mania, Olivia (Pennsylvania)
See docket on RECAP: https://www.courtlistener.com/docket/67454392/united-states-v-essa-bank-trust/
Last updated Aug. 4, 2025, 10:45 p.m.
State / Territory: Pennsylvania
Case Type(s):
Fair Housing/Lending/Insurance
Key Dates
Filing Date: May 31, 2023
Case Ongoing: Yes
Plaintiffs
Plaintiff Description:
United States Attorney General
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: Yes
Class Action Sought: No
Class Action Outcome: Not sought
Defendants
ESSA Bank & Trust (Stroudsburg, Monroe), Private Entity/Person
Defendant Type(s):
Facility 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:
Outcome
Prevailing Party: Plaintiff
Nature of Relief:
Injunction / Injunctive-like Settlement
Source of Relief:
Form of Settlement:
Court Approved Settlement or Consent Decree
Content of Injunction:
Comply with advertising/recruiting requirements
Provide antidiscrimination training
Amount Defendant Pays: $3,170,000
Order Duration: 2023 - 2028
Issues
General/Misc.:
Discrimination Area:
Discrimination Basis:
National origin discrimination
Affected National Origin/Ethnicity(s):
Affected Race(s):