United States v. Itt Consumer Financial Corporation, and Aetna Finance Company, Delaware Corporations

The government brought this action against ITT Consumer Financial Corporation and Aetna Finance Company (“defendants”), alleging that their money lending practices discriminate against loan applicants on the basis of marital status. Claiming these practices violate the Equal Credit Opportunity Act (“ECOA”), 15 U.S.C. §§ 1691 -1691e, and Federal Reserve Board Regulation B (“Regulation B”), 12 C.F.R. § 202.7 (1985), the government sought an injunction under 15 U.S.C. § 1691e(h) and $10,000 in civil penalties under 15 U.S.C. §§ 45 (m)(l)(A), 1691e(c) and 1691e(h). The district court concluded that the lending practices do not violate the ECOA or Regulation B and granted the defendants’ motion for summary judgment. We agree and we affirm.

I

FACTS AND PROCEEDINGS

The defendants lend money to individuals, including individuals who live in seven states which have “equal management” community property laws. Under the community property laws of these states the husband and wife have equal management and control of community property. These states are Arizona, California, Idaho, Louisiana, Nevada, New Mexico, and Washington. Defendants make loans in these states on either a secured or…