First Virginia unit in Maryland settles loan bias lawsuit.

WASHINGTON, D.C. -- First Virginia Bank-Maryland said it settled a loan discrimination suit with a Howard University law professor who had accused the bank of racial bias. The unit of First Virginia Banks Inc. said it paid $210,000 to settle the suit brought by Professor Spencer M. Boyer, who said the bank denied him a $50,000 home equity loan because he is black.

The bank denied that it had discriminated against Professor Boyer, but said it settled the case in order to avoid continuing litigation.

"First Virginia-Maryland has always been and remains committed to fair lending," said spokesman Douglas M. Church Jr. "It is simply good business to lend to all qualified applicants. While we cannot be pleased with any assertion of discrimination, we are satisfied that we have resolved this matter amicably."

The settlement calls for First Virginia-Maryland to allocate $50,000 to education and outreach programs in support of fair-lending practices. The bank said it would work with the Fair Housing Council of Greater Washington to identify census tracts with low- to moderate-income residents. The remaining $160,000 will go to the council and Professor Boyer to cover claims for personal damages, attorneys fees, and other legal costs.

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