A bank refused to offer mortgages to African-Americans living in Buffalo, New York’s attorney general said in a lawsuit that he said was part of a wider investigation into an illegal practice known as redlining.
Evans Bank violated fair housing and discrimination laws by intentionally denying services and products to Buffalo’s east side, home to more than 75 percent of the city’s African-American population, the federal lawsuit alleges.
The bank’s president, David Nasca, called the accusations “meritless.” He said Evans, which has 13 branches in western New York, will vigorously defend itself.
“We remain confident that our residential lending practices meet all applicable laws and regulations,” Nasca said in a statement emailed to The Associated Press.
Attorney General Eric Schneiderman’s lawsuit alleges that Evans used a map to define its lending area that excluded the city’s east side. The company is also accused of refusing to market its loan products or locate its branches in the area.
Schneiderman said the lawsuit is part of a wider investigation by his office into redlining, in which a lender denies access to mortgages or charges more in certain neighborhoods based on race.
“Redlining is illegal and it’s discriminatory — and must, once and for all, be made a thing of the past,” Schneiderman said. “It is crucial that all New Yorkers, regardless of the color of their skin or the racial composition of their neighborhood, be afforded an equal opportunity to obtain credit.”
(AP)
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3 Responses
The real issue is that the banks discriminate against credit risks and those that have a bad credit history and a history of defaulting on their loans. That a large percentage of them happen to be blacks is not the fault of the banks. And they don’t have to throw good money at them to lose in order to prove their love.
Mr. Schneiderman- are you hellbent on having a new subprime financial crisis?
So sad. It’s bad enough to be Black in America (unless you are rich, Americans never discriminate against rich people), but to be living in Buffalo which in itself is a fate to avoid.