Lawsuit alleges discriminatory lending practices by Liberty Bank

The Connecticut Fair Housing Center and the National Consumer Law Center on Thursday filed a lawsuit against Middletown-based Liberty Bank, accusing the community lender of violating federal laws by allegedly denying at higher rates or not providing adequate mortgage lending-services to consumers living in African-American or Latino neighborhoods.

The lawsuit filed in U.S. District Court for the District of Connecticut alleges that the bank has violated the Fair Housing Act by engaging in unlawful “redlining” of predominantly African-American and Latino neighborhoods in the greater Hartford and New Haven metropolitan areas.

“Redlining” is the discriminatory practice by banks or other financial institutions of denying or avoiding providing credit services to consumers because of the…

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