Wells Fargo and Co. has been in the public eye for all the wrong reasons. The scandals started in 2016 when the bankers were accused of opening bogus accounts for its clients. In May of 2015, a lawsuit was filed claiming that the bank had violated the 1969 fair housing act by using lending practices that were predatory. The unfair lending practices were only aimed at the minority the blacks and Hispanics mortgage borrowers. According to the allegations, these minorities were considered to be riskier loan borrower and were given a high-interest rate without being credit qualified. Though the city has done the investigation for a year and carried out statistics from the bank’s record of ten years, Wells Fargo Bank claims that the allegations were not real.
The city is also accusing the bank of the blight found in the neighborhoods where the minority live. According to the accusation, this was due to the high rate of foreclosure that was brought about when the borrowers failed to finance their loans due to the high rate. Due to this, the City is asking for monetary damages, and the bank should get a ruling so that it can stop using the discriminatory practices when it comes to lending.
About Karl Heideck
Karl Heideck, in 20003, graduated from Swarthmore College. He further pursued his studies at the James E. Beasley School of Law where he was awarded Juris Doctor in the year 2009. His career is focused on legal issues, mainly, for those in the city of Philadelphia. Karl’s primary focus is in Civil Litigation, risk management, and compliance. He has worked as a project attorney for the Pepper Hamilton LLP and has also been as an associate in Conrad O’Brien.
Karl Heideck having over ten years of experience in law, offers different types of services that range from risk management advice, compliance consulting, tenacious representational corporate law, commercial litigation, and the proceedings of employment. Karl is also a writer and most of his articles and blogs focuses on contemporary legal developments.