Three law firms teamed to file a federal lawsuit Thursday against Huntington National Bank, claiming that it discriminates against customers of Arab descent and Muslim faith by forcing them to close their accounts with no explanation.
The firms are hoping to see it become classified as a class action suit.
The suit was filed by Nabih H. Ayad & Associates P.C. of Canton Township, Jaafar & Mahdi Law Group P.C. of Dearborn and Barry A. Seifman P.C. of Farmington Hills.
A press conference was held Thursday in the office of the Arab-American Civil Rights League, of which Ayad is chairman.
The group held a press conference March 19 in which Ayad said it had received about a dozen reports of Arab-Americans’ accounts being closed without explanation by financial institutions. The league established a hotline, 1-313-633-0890, and saw the numbers balloon to more than 100.
He said in March that the league had sent a letter of protest to the U.S. Department of Justice’s Civil Rights Division.
Ayad said Thursday more than 60 plaintiffs are part of the suit, led by Ali El-Hallani of Canton and Mark Manuaeel of Farmington Hills. The league received complaints about several financial institutions, but the most were about Huntington, which was chosen as the suit’s target. Ayad said the firms wanted to proceed one bank company at a time, and called Huntington’s actions the “most egregious.” He said Chase was No. 2 on the list and Flagstar Bank was No. 3, and he also cited Charter One and Comerica.
“We are reviewing the information available to us at this time and cannot specifically comment,” Huntington spokeswoman Maureen Morrissey Brown said. “It is Huntington’s policy to not comment on legal matters. However, Huntington appreciates the opportunity to do business within the Arab-American community, in greater Detroit and all our other markets.”
Ayad said it appeared the decision was made above the branch level, according information the league received.
Manuaeel received a letter from Huntington telling him to close his account March 4; El-Hallani received a similar letter March 11. The suit said they asked why their accounts were being closed, but were not given an explanation. The suit also said neither man engaged in illegal activity involving their accounts.
One of the more than 60 plaintiffs, Adnan Mouhajer of Dearborn Heights, said he received a letter March 19 telling him he had less than two weeks to close his six personal or business accounts. He had been a Huntington customer for nearly 18 years and owns several businesses, including a gas station.
He said he called a toll-free number and left a message, but no one called him back.
“No one had the courage to face me,” Mouhajer said. “They didn’t want to discuss it with me.”
He moved his money to Comerica, but said because he’s a new customer he faced new rules, like having to use its armored truck for business money pickups.
Ayad said owners of many types of businesses have been affected, and it forced them to make changes with everything from their employees’ direct deposits to cashing customers’ checks to having their Michigan Lottery vendor accounts suspended during the transition.
He called it “shameful” and “deplorable,” and added that the plaintiffs were told, “basically go pound your fist in the sand.”
“They said, ‘We can’t give you an answer,’” Ayad said. “It’s the same as the No-Fly List.
“They won’t tell you. That’s what’s so troublesome.”
Ayad said the suit will force Huntington to explain its criteria for ordering customers to close their accounts.
Dawud Walid, executive director of the Council on American-Islamic Relations’ Michigan Chapter, urged the U.S. Department of Treasury to launch an investigation into what he called the “new Jim Crow in the banking industry.”
“They are wielding the power to destroy someone’s life for a short time or a long time, arbitrarily,” said attorney Kassem Dakhlallah of Jaafar & Mahdi, adding that basic things like direct deposit and paying bills become a burden.
Mike Jaafar, part of the same firm, called for all Americans — who bailed out the banking industry — to be treated equally.
Seifman said it’s “horrible” to explain to a child that their account was closed, and its embarrassing for a business owner to have to explain to their employees what happened.
The suit seeks more than $75,000 for each plaintiff and a temporary restraining order prohibiting Huntington from closing customers’ accounts for “discriminatory reasons.” The suit also accuses Huntington of negligent hiring, training, supervision and retention of employees, and that the plaintiffs’ civil rights were violated.
Huntington National Bank is a division of Huntington Bancshares Inc. of Columbus, Ohio. According to its website, it has more than 700 branches and more than 1,400 ATMs in Michigan, Indiana, Kentucky, Ohio, Pennsylvania and West Virginia.
There are three Huntington branches in Dearborn and none in Dearborn Heights.