United States of America and Consumer Financial Protection Bureau v. BancorpSouth Bank
The CFPB and the
Department of Justice (DOJ) announced a joint action against BancorpSouth Bank for
discriminatory mortgage lending practices that harmed African Americans and
other minorities. The complaint filed by
the CFPB and DOJ alleges that BancorpSouth engaged in numerous discriminatory
practices, including illegally redlining in Memphis; denying certain African Americans
mortgage loans more often than similarly situated non-Hispanic white applicants;
charging African-American customers for certain mortgage loans more than
non-Hispanic white borrowers with similar loan qualifications; and implementing
an explicitly discriminatory loan denial policy. Under the terms of the consent order, BancorpSouth will pay $4 million in direct loan
subsidies in minority neighborhoods in Memphis, at least $800,000 for community
programs, advertising, outreach, and credit repair, $2.78 million to African-American
consumers who were unlawfully denied or overcharged for loans, and a $3 million
penalty.
Related documents
Order terminating consent order