The U.S. Department of Justice announced a $31 million settlement with City National Bank over allegations that the Los Angeles-based bank engaged in “redlining” – a pattern of lending discrimination – in Los Angeles County.
The settlement, which according to the DOJ is the largest redlining settlement in the department’s history, will benefit individuals and communities impacted by the discriminatory practice, the DOJ announced on Thursday.
Redlining, a discriminatory and illegal practice, is when lenders withhold services from customers who live in low-income neighborhoods, disproportionately impacting communities of color.
“We disagree with the allegations, but nonetheless support the DOJ in its efforts to ensure equal access to credit for all consumers, regardless of race,” City National said in a statement to ABC News.” … We are committed to ensuring that all consumers have an equal opportunity to apply for and obtain credit. We stand proudly on our legacy of integrity, corporate philanthropy and commitment to the communities we serve.”
“The Justice Department will continue to build on our efforts to vigorously enforce federal fair lending laws and work to ensure that financial institutions provide equal opportunity for every American to obtain credit,” Attorney General Merrick B. Garland said in a statement on Thursday. “In advance of what would have been Dr. Martin Luther King Jr.’s 94th birthday, it is a fitting time to reaffirm our commitment to that work, and to the pursuit of justice for all Americans.”

Abcnews