Providence has dropped its lawsuit against the bank Santander. The suit filed back in May claimed the bank deliberately limited lending in minority neighborhoods while expanding lending in white ones.
At the time, lawyers called the bank’s lending practices a civil rights issue. Less than six months later, they settled. Santander will make $1.3 million in grants going to the Providence Community Library, arts organization AS220, and a non-profit that will help low-income residents secure a mortgage.
The City of Providence has filed a federal lawsuit claiming Santander Bank engaged in discriminatory lending practices. Lawyers filing the suit are calling the bank’s lending practices a civil rights issue.
The lawsuit claims that during the housing boom minority neighborhoods were given risky loans, then after the bust Santander stopped making loans in those neighborhoods and focused instead on white neighborhoods.