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New York Dept. of Financial Services Consent Order

 

Chemung Canal Trust Company has entered into a Consent Order with the New York State Department of Financial Services with regards to alleged violations of New York’s Fair Lending Law and the Federal Equal Credit Opportunity Act related to our Indirect Lending business.

The consent order resolved a dispute between the bank and the New York State Department of Financial Services (NYS DFS) without further legal action. Using the Bayesian Improved Surname Geocoding (BISG) proxy, the NYS DFS determined, through statistical analysis, that CCTC’s indirect automobile lending program violated federal and state fair lending laws by charging a higher interest rate on Hispanic borrowers than similarly situated non-Hispanic white borrowers.

NYS DFS did not find evidence of any intentional discrimination against Hispanic borrowers on the part of CCTC or its employees, and CCTC’s lending policies were neutral with regard to race and ethnicity. However, the Bank’s policy or practice of permitting automobile dealers to impose a dealer markup without any justification on the basis of objective credit related factors resulted in disparate impact on the basis of ethnicity.

To view the Consent Order, please click here.

As part of this settlement, we will be paying restitution to impacted borrowers from 2016 – 2020.  If you feel you may have been impacted, but have not been identified as an Eligible Impacted Borrower, please follow the instructions below to submit a claim. Once received, the Bank will make a determination as to whether the claimant was impacted, subject to NYS DFS’s review.

 

A claim may be submitted by our electronic form or by:

Phone: (800) 836-3711
Fax: (607) 735-2064
Electronic mail: [email protected]

Mail:

Chemung Canal Trust Company
Attn: Compliance Department
PO Box 1522
Elmira, NY 14902

Electronic form:

 

All claims must be received by August 2, 2022.
If submitted by mail, the claim must be postmarked no later than August 2, 2022.
 

Frequently Asked Questions

Click here for a downloadable PDF of the FAQs
 

1.Why is there a consent order?

  1. The consent order resolved a dispute between the bank and the New York State Department of Financial Services (NYS DFS) without further legal action. Using the Bayesian Improved Surname Geocoding (BISG) proxy, the NYS DFS determined, through statistical analysis, that CCTC’s indirect automobile lending program violated federal and state fair lending laws by charging a higher interest rate on Hispanic borrowers than similarly situated non-Hispanic white borrowers.
  2. NYS DFS did not find evidence of any intentional discrimination against Hispanic borrowers on the part of CCTC or its employees, and CCTC’s lending policies were neutral with regard to race and ethnicity. However, the Bank’s policy or practice of permitting automobile dealers to impose a dealer markup without any justification on the basis of objective credit related factors resulted in disparate impact on the basis of ethnicity.

2.Will there be restitution?

  1. CCTC will provide restitution to all Eligible Impacted Borrowers identified during NYS DFS’s Consumer Compliance and Fair Lending examination. CCTC will mail a check to the last known address of each Eligible Impacted Borrower.

3.Who is eligible to receive restitution?

  1. Eligible Impacted Borrowers identified as having a BISG probability of being Hispanic, paid more than the average interest rate markup for non-Hispanic white borrowers, and were provided automobile financing through CCTC between January 1, 2016 and December 31, 2020.

4.How much will I receive?

  1. If you are an Eligible Impacted Borrower, you will receive a reimbursement based on the higher interest paid over the loan term, as compared to the average interest rate paid by similarly situated non-Hispanic white borrowers.

5.What if I was impacted, but not identified as an Eligible Impacted Borrower?

  1. If you believe you have been impacted, but were not identified as an Eligible Impacted Borrower, please visit (website) and follow the instructions to submit a claim. Once received, CCTC will make a determination as to whether the claimant was impacted, subject to NYS DFS’s review.
  2. A claim also may be submitted by either phone at (800) 836-3711, fax at (607) 735-2064 (Attention: Compliance  Department), electronic mail at [email protected], electronic form or by regular mail to:

             Chemung Canal Trust Company
             Attn: Compliance Department
             PO Box 1522
             Elmira, NY 14902

All claims must be received by August 2, 2022. If submitted by regular mail, the claim must be postmarked no later than August 2, 2022.

 

6.How do I get more information?

  1. For more information, please visit our website at chemungcanal.com or NYS DFS’s website at https://www.dfs.ny.gov/.