DETROIT GROUP SUES NATIONAL CITY BANK FOR DISCRIMINATORY LENDING PRACTICES
Written by PT   
January 25, 2007
DETROIT GROUP SUES NATIONAL CITY BANK FOR DISCRIMINATORY LENDING PRACTICES Detroit, MI - A group of aggravated Detroiters brought suit today against National City Bank of the Midwest for discriminatory lending practices based on race. FOR IMMEDIATE RELEASE CONTACT: David L. Rose
April 26, 2006 Phone: (202) 331-8555
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DETROIT GROUP SUES NATIONAL CITY BANK FOR DISCRIMINATORY LENDING PRACTICES

Detroit, MI— A group of aggravated Detroiters brought suit today against National City Bank of the Midwest for discriminatory lending practices based on race.

The suit, filed in U. S. District Court for the Eastern District of Michigan, by New Galilee Missionary Baptist Church, Pleasant Hill Baptist Church, JAT aka Turner Tours and Charters, and former National City Bank loan officer Phillip Peake allege that National City Bank and its owners—National City Corporation—engages in “racial redlining” and does not accept Small Business and other loans in areas of Detroit with high African American populations.

Redlining is a violation of the Fair Housing Amendments Act of 1988, the 19th Century Civil Rights Act, as well as the Equal Credit Opportunity Act.

David L. Rose, of Rose & Rose in Washington, D.C., attorney for the group said, “These laws exist to ensure banks make loans based on legitimate business reasons; not on an applicant’s skin color or whether an applicant chooses to live or operate a business in a predominately African-American community.”

The suit alleges that in 2004 and 2005 , Phillip Peake—then a loan officer for the bank —processed twelve loan applications for $7,714,472 on property located in heavily African-American residential areas and that National City Bank denied those loans because their proposed locations were in areas “not desirable based upon National City criteria.” Each of the twelve loan applications was subsequently accepted by other lending institutions.

“National City Bank’s discriminatory practices, particularly in the area of real estate lending, have considerable negative economic impact—immediate and long-term—on a community and its ability to remain viable,” Rose added. “We are asking that the Court direct National City Bank to craft Community Reinvestment Act programs to encourage valid business loans in the formerly redlined areas and to provide restitution to all injured parties and to award such punitive damages to the victims of the Bank’s discriminatory polices and practices as may be authorized by law. Our aim is to open opportunities to underserved areas and citizens of Detroit.”

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DETROIT GROUP SUES NATIONAL CITY BANK FOR DISCRIMINATORY LENDING PRACTICES Detroit, MI - A group of aggravated Detroiters brought suit today against National City Bank of the Midwest for discriminatory lending practices based on race.

 
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