Filed Date: Oct. 13, 2006
Closed Date: 2010
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On October 13, 2006, the Department of Justice filed suit in the U.S. District Court for the Northern District of Indiana against Centier Bank under the Fair Housing Act, 42 U.S.C. 3601-3619, and the Equal Credit Opportunity Act, 15 U.S.C. 1691. The DOJ alleged that Centier Bank had engaged in a practice called redlining by unlawfully failing to market and provide its lending products and services on an equal basis to majority-minority census tracts in northwestern Indiana. The DOJ specifically alleged that Centier Bank intentionally failed to serve heavily African-American and Hispanic communities in the cities of Gary, East-Chicago, and Hammond.
The two parties entered a settlement agreement that was agreed to by the court on October 16, 2006. Under the settlement agreement, the Defendant-lender agreed to open branch offices during the three year term of the settlement agreement. Centier Bank will also invest $3.5 million in a special financing program and spend at least $875,000 for consumer financial education and outreach purposes.
On January 5, 2010 both parties and the court (Judge Lozano) agreed to an order amending the original settlement by extending the deadline for Centier Bank to open its new branch in Hammond, Indiana.
Similar cases brought forth by the Department of Justice against lenders under allegations of redlining include United States v. Old Kent Financial Corporation, United States v. First American Bank, and United States v. Citizens Republic Bancorp, Inc..
Summary Authors
Megan Richardson (4/3/2014)
Cherry, Paul R. (Indiana)
Archeval, Anthony F. (District of Columbia)
Dougherty , Burtis M. (District of Columbia)
Gonzales, Alberto (District of Columbia)
Branic, Matthew C. (Indiana)
Cherry, Paul R. (Indiana)
Lozano, Rodolfo (Indiana)
Last updated April 2, 2024, 3:09 a.m.
State / Territory: Indiana
Case Type(s):
Fair Housing/Lending/Insurance
Special Collection(s):
Key Dates
Filing Date: Oct. 13, 2006
Closing Date: 2010
Case Ongoing: No
Plaintiffs
Plaintiff Description:
U.S. 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
Centier Bank, Private Entity/Person
Defendant 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:
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: $4.3
Order Duration: 2006 - 2011
Content of Injunction:
Develop anti-discrimination policy
Provide antidiscrimination training
Issues
General:
Discrimination-area:
Discrimination-basis:
National origin discrimination
Race:
National Origin/Ethnicity: