DOJ announces first credit union redlining settlement

The Justice Department announced that Citadel Federal Credit Union has agreed to pay more than $6.5 million to resolve allegations that it engaged in lending discrimination by redlining predominantly Black and Hispanic neighborhoods in and around Philadelphia.

Details: The DOJ said the landmark agreement is its first redlining settlement with a credit union. It said there are more than 4,600 U.S. credit unions, all subject to federal laws that prohibit redlining and lending discrimination.

ICBA Advocacy: ICBA has repeatedly called on policymakers to address credit unions’ exemption from the Community Reinvestment Act, including in congressional testimony. Recent ICBA polling conducted by Morning Consult found 69% of U.S. adults say credit union customers should have the same consumer protections that banks provide, such as those offered by the CRA.