Sunday
October 26, 2014

Bank Giant Accused of Discriminatory Lending

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Bank Giant Accused of Discriminatory Lending

The Consumer Financial Protection Bureau and Department of Justice have filed a joint discriminatory lending complaint against National City Bank. The bank is being accused by the two government agencies of charging African-American and Hispanic borrowers different prices on their mortgages when compared to white borrowers with similar credit histories.

The violations allegedly occurred between 2002 and 2008. The government claims that more than 76,000 minority borrowers faced higher costs on their mortgages from the bank.

Since 2012, the CFPB and DOJ have been partnering up to pursue fair lending cases. The agencies want National City Bank—through PNC, which acquired the bank in 2008—to pay $35 million in fines to minority borrowers who were allegedly affected.

Source: “CFPB, DOJ file discriminatory lending complaint against National City Bank,” HousingWire (Dec. 23, 2013)

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