Washington Trust in Response to DOJ Says, “We Deny These Allegations”
Wednesday, September 27, 2023
Just an hour after U.S. Attorney for Rhode Island Zach Cunha and Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division finished a press conference detailing years of redlining by Washington Trust against Blacks and Hispanics in Rhode Island and announcing an agreement, the bank issued a very different statement.
First, Edward O. “Ned” Handy III, the CEO of Washington Trust, said in a press statement that the bank was never in violation of the law.
“We believe we have been fully compliant with the letter and spirit of fair lending laws, and the agreement will further strengthen our focus on an area that has always been important to us,” said Handy.”
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When asked why the bank's statements and Cunha’s did not match, the head of communications was emphatic.
“We deny these allegations,” Elizabeth B. Eckel, the Executive Vice President, Chief Marketing & Corporate Communications Officer for Washington Trust, after DOJ announced "Justice Department Secures $9 Million Agreement with Washington Trust Company to Resolve Redlining Claims in Rhode Island."
Government’s Complaint Outlines Numerous Violations by Washington Trust
According to the Department of Justice’s complaint against Washington Trust, “Washington Trust’s conduct and practices were intended to deny, and had the effect of denying, equal access to home loans for those residing in, or seeking credit for properties located in, majority-Black and Hispanic neighborhoods, and otherwise discouraged those individuals from applying for home loans on the basis of the race, color, or national origin of the residents of those neighborhoods.”
Further, the government claims, “Washington Trust’s conduct was not justified by a legitimate, nondiscriminatory reason or business necessity and was not necessary to achieve a substantial, legitimate, nondiscriminatory interest.”
In addition, the Department of Justice found a pattern, “Washington Trust’s lending demonstrated a pattern of disproportionately failing to serve majority-Black and Hispanic neighborhoods in Rhode Island, when compared with its peer lenders. Washington Trust’s policies and practices alleged herein—including the concentration of all its branches, mortgage loan officers, marketing, and outreach in majority-white neighborhoods—have discriminated against and discouraged applicants and prospective applicants in majority-Black and Hispanic neighborhoods in Rhode Island from applying for and obtaining home loans and other mortgage-related services.”
The 45-page complaint has numerous other examples.
Specifically, Justice asserts Washington Trust knew of these non-compliance issues for more than a decade.
“Washington Trust’s policies and practices alleged herein—including the concentration of all its branches, mortgage loan officers, marketing, and outreach in majority-white neighborhoods—have discriminated against and discouraged applicants and prospective applicants in majority-Black and Hispanic neighborhoods in Rhode Island from applying for and obtaining home loans and other mortgage-related services.”
The settlement agreement that Cunha announced is outlined HERE.
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