Feds, Chaska's KleinBank Settle Suit Over Racial Discrimination

CHASKA, Minn. (AP) — The U.S. Department of Justice and a Minnesota bank have settled a lawsuit alleging the bank engaged in mortgage lending practices that discriminate against minorities.

The agency and KleinBank announced the settlement Tuesday. KleinBank says both sides agreed to voluntarily resolve the claims "to avoid the burdens of further litigation."

The Justice Department sued KleinBank in 2017, alleging the Chaska-based bank engaged in "redlining," a practice in which banks deny or avoid providing credit services to consumers because of racial demographics or the neighborhood where they live. The bank disputed the claim.

Under the settlement, KleinBank will expand its banking services in predominantly minority neighborhoods in the Minneapolis area.

KleinBank CEO Doug Hile says the 21-branch bank looks forward "to continuing to work with and serve the needs of all our communities."

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