Bank Agrees To Settlement Of Civil Rights Feds' Allegations Of Redlining Predominantly Black Neighborhoods In & Around St. Louis

From the U.S. Department of Justice (Washington, D.C.):

• The Justice Department filed a consent order [] to resolve allegations that Eagle Bank and Trust Company (Eagle Bank) engaged in a pattern or practice of “redlining” predominantly African-American neighborhoods in and around St. Louis. “Redlining” is the discriminatory practice by banks or other financial institutions to deny or avoid providing credit services to a consumer because of the racial demographics of the neighborhood in which the consumer lives. This is the second redlining settlement that the department has announced in the past week.
  
  As a result of the settlement, Eagle Bank will open two new locations to serve the residents of African American neighborhoods in northern St. Louis. The bank will also invest at least $975,000 to provide banking and borrowing opportunities to residents and businesses in those areas. The settlement, which is subject to court approval, was filed in conjunction with the department’s complaint in the U.S. District Court for the Eastern District of Missouri. The complaint alleges violations of the Fair Housing Act and the Equal Credit Opportunity Act (ECOA), which prohibit financial institutions from discriminating on the basis of race and color in their mortgage lending practices.
  
  
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  Under the settlement, Eagle Bank will invest $800,000 in a special financing program to increase the amount of credit the bank extends to majority African American areas in the Missouri portion of the St. Louis metropolitan area, spend $75,000 for consumer education and credit repair programs, and spend $100,000 for outreach to potential customers and promotion of their products and services. Eagle Bank will also open two locations to serve predominantly African American areas within the Missouri portion of the St. Louis metropolitan area, and will conduct fair lending training for its employees. The agreement prohibits Eagle Bank from discriminating on the basis of race or color in any aspect of a residential real estate-related or credit transaction.
  
  The lawsuit originated from information gathered by the Metropolitan St. Louis Equal Housing Opportunities Council and provided to the Federal Deposit Insurance Corporation (FDIC). The FDIC conducted an investigation and referred this matter to the Justice Department’s Civil Rights Division.

Source: Justice Department Reaches Settlement with Eagle Bank and Trust Company to Resolve Allegations of Lending Discrimination in St. Louis.