Capital One Class Action: Bank Locations Closed Based on Racial Bias

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In a class action lawsuit, the NAACP (National Association for the Advancement of Colored People) and LULAC (League of United Latin American Citizens) claim that Capital One strategically closes bank locations based on racial bias.

The two organizations, on behalf of themselves and all affected organizations, along with Laurie Vignaud, a former Capital One employee, claim that Capital One has been intentionally closing banking locations located in predominantly black and Hispanic neighborhoods, but not closing comparable numbers of locations in predominantly white neighborhoods, leaving only remote banking facilities in minority neighborhoods.

The NAACP and the LULAC have longstanding interest in protecting communities of color from banking and housing discriminatory practices, and claim that they joined up with Vignaud because they see Capital One’s history of closing certain branches and not others to be race-based discrimination.

Vignaud worked for Capital One for almost two decades, most recently as the senior director of the South Central U.S. region. She claims that she observed the company’s policies from inside the organization, as one of her duties was to ensure that the bank complied with the 1977 Community Reinvestment Act, which aims to protect communities of color from redlining, banks’ practice of purposely not opening banks in communities of color.

According to Vignaud, the bank maintained a strategic practice of closing banking locations in communities of color, but not closing a comparable number of locations in predominantly white communities. She said that Capital One did maintain ATMs in the predominantly black and Hispanic communities, which has the effect of blocking minority customers from certain banking services which require an in-person banking experience, while inviting them to be “debit card only” customers. She claims that this practice speaks to the bank’s discriminatory practice of catering to its white customers, while blocking many black and Hispanic customers from accessing banking services conveniently.

The Capital One bank discrimination class action lawsuit claims that this practice was intentional and calculated. Vignaud reports that while she worked at Capital One, the bank closely monitored activist groups within communities of color, including the NAACP, the LULAC, the Urban League, Black Lives Matter, and other civil rights organizations, trying to discern if any members of these group noticed and expressed displeasure at Capital One’s strategic closing of banking locations in communities of color.

The Capital One redlining class action lawsuit claims that the bank used marketing tactics to mask this practice, hiring prominent black celebrities as spokespeople, with the intent of conveying that the bank catered towards communities of color.

Celebrities contracted to advertise for Capital One include Samuel L. Jackson and Spike Lee. The Capital One bank location closing class action lawsuit claims that this marketing tactic is in direct conflict with the bank’s actual practice of actively discriminating against people of color.

During her time at Capital One, Vignaud spoke to bank higher-ups about her belief that the company’s strategy was discriminatory, and claims that though the executives knew they were violating the law, they did not remedy the situation. In contrast, she claims that she was fired for resisting the company’s discriminatory and illegal policy.

The NAACP, LULAC, and Vignaud are represented by Benjamin L. Hall, III and William L. Van Fleet, II of The Hall Law Firm, Enrique M. Dovalina of Dovalina & Eureste LLP, Dr. James M. Douglas, and Adrian V. Villacorta of The Villacorta Law Firm.

The Capital One Bank Discrimination Class Action Lawsuit is National Association for the Advancement of Colored People, et. al. v. Capital One Bank NA, Case No. 4:18-cv-00603, in the U.S. District Court for the Southern District of Texas, Houston Division.