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Tag Archives: Circuit Split

Third Circuit Furthers Split Regarding Use of McDonnell Douglas Test in Lender Discrimination Suits

Posted by Meredith A. Brooks on Posted in Lending Discrimination

In Anderson v. Wachovia Mortgage Corporation, the Court of Appeals for the Third Circuit furthered a split between the Circuits by holding that the direct evidence test introduced by Price Waterhouse v. Hopkins, and the burden-shifting framework established by McDonnell Douglas Corp. v. Green, may be used to investigate claims of discriminatory lending under § 1981. The Circuit split furthered by the Third Circuit’s decision in Anderson will require claimants to use different standards when making a prima facie case of lending discrimination under § 1981 depending upon the Circuit in which their claims are brought.

The appellants in Anderson were three African-American couples who purchased adjacent homes in a Dover, Delaware community. The couples brought a case against their lender, Wachovia Mortgage Corporation, after the lender imposed several conditions on the approvals of their respective mortgages; conditions that the appellants claim were imposed solely because they were African-Americans attempting to purchase property in a predominately Caucasian neighborhood.

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Ninth Circuit Creates Split About the Meaning of the Word “Sue” as Used in the CROA

Posted by Sonia Salinas on Posted in Credit CARD Act

The Credit Repair Organizations Act (CROA), found at 15 U.S.C. § 1679, was enacted to ensure consumers of services of credit repair organizations are provided with the information necessary to make informed decisions regarding the purchase of such services; and to protect the public from unfair or deceptive advertising and business practices by credit repair organizations. Section 1679c of the

CROA requires that credit repair organizations make certain written disclosures to consumers including that consumers have “a right to sue a credit repair organization that violates” the CROA. The CROA also contains a provision that voids any waiver by consumers of rights provided in the CROA. In a recent decision, Greenwood, et al. v. CompuCredit Corp., —F.3d—, 2010 WL 3222415 (9th Cir. Aug. 17, 2010)(Thomas, J.), the Ninth Circuit disagreed with decisions from other circuits about whether arbitration agreements between credit repair organizations and consumers are enforceable when a consumer sues for violations of the CROA. Specifically, there is now a dispute among the circuits about what the word “sue” means as used in the CROA. Does the word “sue” as used in Section 1679c create a right for consumers to sue in court; or does the word “sue” encompass dispute resolution through arbitration?

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