New York Dept. of Financial Services Consent Order - Claim Form |
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Chemung Canal Trust Company has entered into a Consent Order with the New York State Department of Financial Services with regards to alleged violations of New York’s Fair Lending Law and the Federal Equal Credit Opportunity Act related to our Indirect Lending business.
The consent order resolved a dispute between the bank and the New York State Department of Financial Services (NYS DFS) without further legal action. Using the Bayesian Improved Surname Geocoding (BISG) proxy, the NYS DFS determined, through statistical analysis, that CCTC’s indirect automobile lending program violated federal and state fair lending laws by charging a higher interest rate on Hispanic borrowers than similarly situated non-Hispanic white borrowers.
NYS DFS did not find evidence of any intentional discrimination against Hispanic borrowers on the part of CCTC or its employees, and CCTC’s lending policies were neutral with regard to race and ethnicity. However, the Bank’s policy or practice of permitting automobile dealers to impose a dealer markup without any justification on the basis of objective credit-related factors resulted in a disparate impact on the basis of ethnicity.
To view the Consent Order, please click here.
As part of this settlement, we will be paying restitution to impacted borrowers from 2016 – 2020. If you feel you may have been impacted, but have not been identified as an Eligible Impacted Borrower, please follow the instructions below to submit a claim. Once received, the Bank will make a determination as to whether the claimant was impacted, subject to NYS DFS’s review.
The consent order resolved a dispute between the bank and the New York State Department of Financial Services (NYS DFS) without further legal action. Using the Bayesian Improved Surname Geocoding (BISG) proxy, the NYS DFS determined, through statistical analysis, that CCTC’s indirect automobile lending program violated federal and state fair lending laws by charging a higher interest rate on Hispanic borrowers than similarly situated non-Hispanic white borrowers.
NYS DFS did not find evidence of any intentional discrimination against Hispanic borrowers on the part of CCTC or its employees, and CCTC’s lending policies were neutral with regard to race and ethnicity. However, the Bank’s policy or practice of permitting automobile dealers to impose a dealer markup without any justification on the basis of objective credit-related factors resulted in a disparate impact on the basis of ethnicity.
To view the Consent Order, please click here.
As part of this settlement, we will be paying restitution to impacted borrowers from 2016 – 2020. If you feel you may have been impacted, but have not been identified as an Eligible Impacted Borrower, please follow the instructions below to submit a claim. Once received, the Bank will make a determination as to whether the claimant was impacted, subject to NYS DFS’s review.
All claims must be received by August 2, 2022.
If submitted by mail, the claim must be postmarked no later than August 2, 2022.
If submitted by mail, the claim must be postmarked no later than August 2, 2022.