Filed Date: April 15, 1996
Closed Date: 2001
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The Department of Justice filed suit in the U.S. District Court for the District of South Dakota on April 15, 1996, 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-bank, a Nebraska-based lender, had no formal policy for setting borrowers' interest rates but that the Defendant systematically charged American Indian borrowers much higher interest rates than white borrowers.
The parties entered a consent decree on May 7, 1997. The consent decree enjoined the Defendant from future acts of discrimination against American Indians and required the Defendant to create a special fund of $175,000 to compensate American Indians for past acts of discrimination. The decree also required the Defendant to set aside $25,000 in each of the following four years to pay for credit report service fees incurred in connection with loan applications by American Indians. The Defendant-bank also agreed to market its products to American Indians and recruit them for employment and promotion.
The consent decree terminated in 2001, and the case is now closed.
Summary Authors
Andrew Nash (6/2/2008)
Battey, Richard Howard (South Dakota)
Campos, Marta (District of Columbia)
Hancock, Paul F. (District of Columbia)
Keary, Thomas J. (District of Columbia)
Magagna, Joan A. (District of Columbia)
Battey, Richard Howard (South Dakota)
Young, Marshall P. (South Dakota)
Campos, Marta (District of Columbia)
Hancock, Paul F. (District of Columbia)
Keary, Thomas J. (District of Columbia)
Magagna, Joan A. (District of Columbia)
Maurer, Michael S. (District of Columbia)
Patrick, Deval L. (District of Columbia)
Pinzler, Isabelle Katz (District of Columbia)
Reno, Janet (District of Columbia)
Rich, Joseph D. (District of Columbia)
Last updated March 24, 2024, 3:07 a.m.
State / Territory: South Dakota
Case Type(s):
Fair Housing/Lending/Insurance
Special Collection(s):
Key Dates
Filing Date: April 15, 1996
Closing Date: 2001
Case Ongoing: No
Plaintiffs
Plaintiff Description:
United States, on behalf of American Indians who were charged higher interest rates for consumer loans by the First National Bank of Gordon, Nebraska.
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
First National Bank of Gordon, Nebraska, Private Entity/Person
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:
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
Order Duration: 1997 - 2001
Issues
General:
Discrimination-area:
Discrimination-basis:
Race: