Wells Fargo & Co. is facing accusations of going against the Fair Housing Act of 1968 by employing illegal lending means targeting the minority mortgage borrowers. Defending itself, Wells Fargo states that its practices are open and fair to all and the lawsuit aimed at them lack adequate backup. The City of Philadelphia filed this lawsuit in the U.S. District Court on May 15th for the District of Pennsylvania.
The Bank is alleged of offering unsafe loans that come with extremely high-interest rates. Wells Fargo Bank is still dealing with a scam involving its bankers opening fake accounts and acting up as customers. These investigations had been made for one year before a complaint was made.
Considering the City’s statistics that openly shows that it houses the largest minority population, the bank’s practices have left huge a dent to the city’s occupants. Consequently, it led to more fraud cases and increased crime rates. This is because the bank denied its borrowers loans that would cancel their mortgages, an event that led to many homeless people.
Wells Fargo is now facing Philadelphia’s lawsuit just after another lawsuit that granted the Miami people permission to sue it together with Bank of America because of their notorious lending practices. This action portrayed by the banks is commonly known as redlining. Redlining is where a bank is biased in giving out loans to specific neighborhoods. The bank is still in denial of the accusations. In its defense, it states that for the past 140 years, its services have been commendable.
About Karl Heideck
Karl, an approved contract attorney, has received recognition from the Higher Counsel ranging back to April 2015. He is a graduate of Swarthmore College where he got a degree in Bachelor of Arts and also Temple University’s James E. Beasley School of Law. Heideck acquired a lot of experience through practice especially in the Great Philadelphia Region where he was a project attorney.
Karl Heideck is currently a dedicated attorney offering a variety of services like risk management advisement among others. He also doubles up as a writer and aims to produce educative content, as he strives to better the people of Pennsylvania.