First United Bank of Dimmitt Settles in Discrimination Case
The First United Bank of Dimmitt, Texas, has settled with the United States Department of Justice after facing allegations of discrimination.
According to a press release from the Department of Justice, the suit alleged First United charged Hispanic borrowers higher rates on unsecured customer loans.
First United must now charge uniform prices, conduct Equal Credit Opportunity employee training and pay $140,000 in compensation to victims as part of their settlement.
“This district is committed to ensuring banks and other lending institutions do not discriminate against borrowers on the basis of national origin,” said acting U.S. Attorney for the Northern District of Texas John Parker. “I join the Acting Assistant Attorney General in recognizing First United Bank’s cooperation in accomplishing this settlement that will compensate hundreds of victims of this discrimination.”
According to the DOJ, the lawsuit was referred to the department by the Federal Deposit Insurance Corporation, of which First United Bank is a member.