Consumer Bureau Takes Action Against Trustmark Bank

CFPB Alleges Bank Engaged in Redlining in Memphis

The Consumer Financial Protection Bureau (CFPB) along with the Department of Justice and Office of the Comptroller of the Currency are taking action against Trustmark National Bank for alleged redlining against Black and Hispanic neighborhoods in Memphis, TN.

The CFPB and DOJ allege that Trustmark discriminated against Black and Hispanic neighborhoods by deliberately not marketing, offering, or originating home loans to consumers in majority-Black and Hispanic neighborhoods in the Memphis metropolitan area. The CFPB and DOJ also allege that Trustmark discouraged consumers residing in or seeking credit for properties located in these neighborhoods from applying for credit.

“Trustmark purposely excluded and discriminated against Black and Hispanic communities” said CFPB Director Rohit Chopra. “The federal government will be working to rid the market of racist business practices, including those by discriminatory algorithms.”

“Lending discrimination runs counter to fundamental promises of our economic system. When people are denied credit simply because of their race or national origin, their ability to share in our nation’s prosperity is all but eliminated,” said Attorney General Garland. “Today, we are committing ourselves to addressing modern-day redlining by making far more robust use of our fair lending authorities. We will spare no resource to ensure that federal…