Consumer Bureau Action Tracker

Department of Justice, CFPB v. BancorpSouth Bank




BancorpSouth Bank


Mortgages, Fair Lending, Equal Credit Opportunity Act (ECOA), Redlining, Discrimination, Regulation B

In June 2016, the CFPB and the US Department of Justice filed a lawsuit against BancorpSouth for “redlining,” a “long documented” practice U.S. banks have employed to discriminate “against minorities who want to borrow.” CFPB’s lawsuit alleged the bank denied “more loans to African Americans and other minorities” compared to borrowers in whiter neighborhoods. BancorpSouth, which had 22 branches “in the Memphis area,” made “nearly all” of its loans “outside minority neighborhoods of Memphis.” An Associated Press story revealed that bank employees “us[ed] racial epithets, followed by laughter” when considering hiring an African-American employee.

  • In June 2016, “The Department of Justice and the Consumer Financial Protection Bureau fined Mississippi-based BancorpSouth $10.6 million, alleging the bank deliberately discriminated against minorities in its lending practices.” [Ken Sweet, “Regulators fine BancorpSouth $10.6 million for redlining”, Associated Press, 06/29/16]
  • “The bank had 22 branches in the Memphis area between 2011 and 2013, all of which were located outside neighborhoods with large minority populations. Maps provided by the regulators also showed nearly all BancorpSouth’s loans originated outside minority neighborhoods of Memphis as well.” [Ken Sweet, “Regulators fine BancorpSouth $10.6 million for redlining”, Associated Press, 06/29/16]
  • “In a stark example of the discriminatory culture at BancorpSouth at the time, bank employees were audio-taped using racial epithets, followed by laughter, when discussing the possibility of hiring of an African-American employee, according to the documents released by Justice Department and CFPB.” [Ken Sweet, “Regulators fine BancorpSouth $10.6 million for redlining”, Associated Press, 06/29/16]


Inactive or Resolved

1:16-cv-00118 6/29/2016 7/25/2016

Consumer Financial Protection Bureau And Department Of Justice Action Requires Bancorpsouth To Pay $10.6 Million To Address Discriminatory Mortgage Lending Practices

  • Consumer Financial Protection Bureau (CFPB)
  • Federal district court case
  • U.S. District Court for the Northern District of Mississippi
  • Bank
  • Pending
  • Not Available



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