NJ Attorney General Initiates Fair Lending Action for Race, National Origin & Nationality Discrimination
The New Jersey Attorney General and the State’s Division of Civil Rights announced the filing of a Finding of Probable Cause against a lender and cash advance provider for alleged discrimination based on race, national origin, and nationality.
The State alleges that the company had a discriminatory policy not to lend to certain types of borrowers on a prohibited basis. Among other things, the company’s owner sent employees an audio recording where he stated, “I tell you, no Chinese, no Africans, no Spanish…. Don’t waste your time on these races. Do not waste your time with the Chinese, with the Africans, and Spanish.” Other communications noted that employees should “stay away” from these types of prospective borrowers, that the owner “always says no” to them, and referred to them as “the 3 groups [the owner] don’t like.” The State further alleged that the owner told State investigators that he generally would not lend money to Armenians, to non-U.S. citizens, and to clients who did not speak English. And the owner allegedly maintained a hostile work environment by repeatedly sending racist and offensive memes, gifs, and audio messages to employees.
Separately, the State claims that the owner retaliated against an employee who reported the alleged discrimination to the State. After becoming aware of the employee’s complaint, the owner allegedly called the employee and left a vulgar voice message threatening him with a defamation lawsuit. The employee interpreted this as a threat, attempted to withdraw the complaint to the State, and subsequently resigned from the company.
Due to the issuance of the Finding of Probable Cause, the parties will be referred to a conciliation process where they will have the opportunity to negotiate a voluntary resolution to this matter. If they cannot reach a voluntary resolution, then the State may choose to proceed with an administrative or judicial action against the lender.
