Home / Full timeline / Chevy Chase Federal Savings Bank settles their discrimination suit in which the Justice Department claimed the bank had violated the Fair Housing and Equal Opportunity Acts by engaging in “redlining.” The bank denies the allegations but opts to settle to avoid litigation that could prove to be more costly.
Chevy Chase Federal Savings Bank settles their discrimination suit in which the Justice Department claimed the bank had violated the Fair Housing and Equal Opportunity Acts by engaging in “redlining.” The bank denies the allegations but opts to settle to avoid litigation that could prove to be more costly.
1994 (Aug 22)
The U.S. Justice Department announced that an $11-million-dollar settlement had been reached with Chevy Chase Federal Savings Bank. A discrimination suit contended that the bank had used bias in its lending practices against minorities and low-income people. The Justice Department claimed that the bank had violated the Fair Housing and Equal Opportunity Acts by engaging in "redlining," the practice of not providing services in known low-income areas. In addition to the $11-million-dollar settlement, Chevy Chase Bank agreed to open three mortgage offices and one new branch office in areas of Washington, D.C., with majority Black populations. The settlement also included recruitment of minorities for staffing, advertisement of mortgage services to agents representing minority areas, and the retraining of current staff on fair lending practices. While the bank denied the Justice Department allegations, it opted to settle to avoid litigation that could prove to be more costly.
References:
- • Hornsby, Alton. Chronology of African-American History: Significant Events and People from 1619 to the Present. Detroit: Gale Research, 1995.