Fair Housing Center of Central Indiana, et al. v. Rainbow Realty Group, et al. (S.D. Ind.)

On September 12, 2022, the Division filed a statement of interest in Fair Housing Center of Central Indiana, et al. v. Rainbow Realty Group, et al. (S.D. Ind.). The plaintiffs challenge defendants’ “rent-to-buy” program in Indianapolis, Indiana, alleging that it exploits consumers in predominantly Black and Hispanic neighborhoods by selling properties in poor condition at inflated prices through contracts that are designed to fail. The statement of interest aims to assist the court in evaluating plaintiffs’ Equal Credit Opportunity Act (ECOA) claims. The court dismissed plaintiffs’ ECOA claims on summary judgment, and plaintiffs filed a motion for reconsideration. The brief explains that a contract can both be a lease and also be an “aspect of a credit transaction” for purposes of ECOA. The brief analyzes the record using the definitions in ECOA, concluding that there is sufficient evidence to find that the rent-to-buy agreement used by defendants may extend “credit” as defined by ECOA, and that defendants may fall within ECOA’s definition of “creditor.”