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United States v. First Merchants Bank (S.D. Ind.)


On August 12, 2019, the court approved the entry of settlement agreement and agreed order resolving United States v. First Merchants Bank (S.D. Ind.). On June 13, 2019, the United States filed the complaint and proposed settlement. The complaint alleged that from 2011 to at least 2017, First Merchants violated the Fair Housing Act and Equal Credit Opportunity Act on the basis of race by engaging in unlawful redlining in Indianapolis by intentionally avoiding predominantly African-American neighborhoods. The Department’s complaint also alleges that First Merchants adopted a residential mortgage lending policy that had the effect of denying residents of predominantly African-American neighborhoods equal access to credit in violation of federal law.  Under the settlement, the Bank will invest $1.12 million in a loan subsidy fund to increase credit opportunities to residents of predominantly African-American neighborhoods, and will devote $500,000 toward advertising, community outreach, and credit repair and education. First Merchants will also open a branch and loan production office to serve the banking and credit needs of residents in predominantly African-American neighborhoods in Indianapolis.

Press Release (6/23/19)


Case Open Date
Case Name
United States v. First Merchants Bank (S.D. Ind.)
Civil Rights
  • Southern District of Indiana
  • Fair Housing Act
  • FHA
  • equal credit opportunity act
  • ecoa
  • race
  • African-American
  • redlining
  • credit services
  • mortgage
  • lending
  • home loans
  • denial
  • real estate
  • HMDA
  • census tract
  • pattern or practice
  • Indianapolis-Marion County
  • Muncie
  • 1:19-cv-02365-JPH-MPB
Industry Code(s)
  • None
Updated September 6, 2022