Washington Trust Bank Settles Redlining Claims for $9 Million with DOJ

Washington Trust Company, the oldest community bank in the US, has agreed to pay $9 million to settle allegations of redlining in Rhode Island. The Justice Department accused the bank of engaging in lending discrimination by avoiding providing credit services to majority-Black and Hispanic neighborhoods. The settlement aims to provide relief to impacted communities and promote equal access to home loan opportunities. As part of the agreement, Washington Trust will invest in a loan subsidy fund, establish community partnerships, open branches in minority neighborhoods, and employ a Director of Community Lending. The Justice Department's Combating Redlining Initiative has now secured $98 million in relief for communities affected by lending discrimination.