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Supreme Court Upholds ‘Disparate Impact’ Concept
Friday, June 26, 2015 7:00 AM

Yesterday, the U.S. Supreme Court decided 5-4 to uphold a concept known as "disparate impact." Disparate impact allows statistics to be used to establish claims of discrimination without proving intent to discriminate, and the court’s decision found that the Fair Housing Act applies to such claims.

The case is titled Texas Department of Housing and Community Affairs v. Inclusive Community Project, Inc.

Cornerstone Credit Union League SVP Regulatory Compliance Suzanne Yashewski said, “Credit unions will now need to be diligent in testing their lending programs to ensure that they avoid a disparate impact on any segment of members. The concern is, of course, that well intentioned, compliant credit unions may still inadvertently impact a protected group.”