AIG To Pay $6.1M Over Anti-Black Lending Bias Claims

Law360, New York (March 4, 2010, 7:27 PM EST) -- Two subsidiaries of American International Group Inc. have agreed to pay $6.1 million to settle U.S. government allegations that mortgage brokers with which they contracted hit black borrowers with inflated fees.

Government attorneys filed the settlement, along with the suit itself, on Thursday in the U.S. District Court for the District of Delaware. Their complaint accuses AIG Federal Savings Bank and Wilmington Finance Inc. of violating the Fair Housing Act and Equal Credit Opportunity Act with their lending practices.

AIG has denied wrongdoing.

According to the...
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