Self-assessment: To Do or Not to Do

The Department of Justice has agreed in principle that self-assessment for discriminatory practices should be subject to privilege. In other words, DOJ agrees that findings of discrimination revealed in a self-assessment procedure such as testing or auditing, should not be used by DOJ to establish a case against the bank. Essential to the privilege would be evidence that the bank has or is taking action to correct the problems and prevent discrimination.

In reaching this position, DOJ takes several things into account. First, the Department encourages self-assessment as essential to eliminating racial discrimination. Second, DOJ is pleased with the voluntary compliance already demonstrated by the banking industry.

DOJ supports the provisions in the banking bill currently being considered in Congress that would provide protection for banks and will not oppose it as long as banks continue to respond to fair lending concerns.

Copyright © 1996 Compliance Action. Originally appeared in Compliance Action, Vol. 1, No. 6, 4/96