United States v. Charter Bank (S.D. Tex.)

Overview: 

On September 28, 2016, the United States filed a complaint and consent order in United States v. Charter Bank (S.D. Tex.). The complaint alleges that from 2009 to 2014, the bank discriminated on the basis of national origin in the pricing of vehicle-secured consumer loans to Hispanic consumers, in violation of the Equal Credit and Opportunity Act (ECOA).  A vehicle-secured loan allows a customer to borrow from the bank by tapping the equity in a car the customer already owns.   The consent order requires the bank to maintain uniform pricing policies and procedures, monitor its loans for potential disparities based on national origin, and provide fair lending training to its employees.  The bank will also pay $165,820 to affected borrowers. This matter was referred by the FDIC. The court entered the consent order on October 12, 2016.

press release (9/28/16)

comunicado de prensa (28/9/16)

Case Open Date: 
Wednesday, September 28, 2016
Case Name: 
United States v. Charter Bank (S.D. Tex.)
Topic: 
Civil Rights
Tags: 
equal credit opportunity act
ecoa
Federal Deposit Insurance Corporation
FDIC
national origin
hispanic
latino
non-Hispanic
vehicle-secured consumer loans
loan
Rockport
pricing
interest rate
lending
2:16-cv-00413
Industry Code: 
None
Component: 
Civil Rights Division
Civil Rights - Housing and Civil Enforcement Section
Updated August 18, 2017