DOJ reaches settlement with Eagle Bank and Trust Company to resolve allegations of lending discrimination in St. Louis

September 29, 2015
The Justice Department filed a consent order today 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.