02/21/2013 08:38 am ET

Texas Bank Will Pay Latino Customers After Discrimination Allegations

A Texas bank has reached a settlement to pay back thousands of Latino customers after allegations of discrimination practices based on race.

The Justice Department made the announcement on Tuesday that the Texas Champion Bank of Alice, Texas will pay $700,000 to close to 2,000 Latino customers for loan disparities based on the national origin.

The lawsuit, filed in 2010, stemmed from complaints that the bank charged higher prices on unsecured consumer loans to Latino borrowers, thus violating the Equal Credit Opportunity Act (ECOA).

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