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PNC paying $35M to resolve loan claims

Monday - 12/23/2013, 6:20pm  ET

WASHINGTON (AP) -- PNC Financial Services Group is paying $35 million to resolve government claims of discrimination in residential loans against a Cleveland-based bank that PNC bought in 2009.

The agreement announced Monday by the Justice Department and the Consumer Financial Protection Bureau addresses claims that more than 75,000 African-American and Latino customers of National City Bank paid more for their residential loans between 2002 and 2008. There is no allegation of discrimination by Pittsburgh-based PNC, which bought National City Bank.

Under the terms of the proposed settlement, PNC will pay $35 million dollars into a fund for the benefit of victims of National City Bank's mortgage discrimination.

The discrimination settlement follows a larger $98 million agreement last week between the government and Detroit-based Ally Financial Inc., concerning car loans.


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