Wells Fargo is alleged to have used predatory lending practices and in the process violating the Fair Housing Act of 1968. The bank was sued by the City of Philadelphia that felt that such practices were only meant for minority mortgage borrowers. According to Wells Fargo, the lawsuit has not in any way been substantiated because the said practices are not unfair in any way. The bank has in the recent past been faced by many scandals including the bogus accounts that were being opened by its bankers. According to Philadelphia City, the bank tricked borrowers into high-interest loans that are riskier and yet most of them had met the necessary credit qualifications for lower risk mortgages.
In addition, the city alleges that Wells Fargo made it difficult for the mortgages to be refinanced leading to foreclosures. The violations happened between 2004 and 2014 when the bank engaged in predatory lending practices. Minority communities were the major targets of these practices as compared to neighborhoods that are predominantly white. Philadelphia is seeking an injunction against Wells Fargo as well as unspecified monetary damages. Discriminatory lending practices are illegal and the affected borrowers deserve compensation.
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About Karl Heideck
Karl graduated from Temple University Beasley School of Law with honors in 2009. Prior to joining Temple University Beasley School of Law, he had attended the Swarthmore College and graduated with Bachelor of Arts in English language and literature in 2003. Karl has been serving clients in the greater Philadelphia area in a wide range of civil litigations.
Karl Heideck specializes in risk management and compliance cases. He is currently based at the Grant & Eisenhower PA law firm where he continues to assist his clients. He is largely involved in reviewing securities fraud cases and complex banking litigations. Karl handled most of the cases resulting from the 2008 mortgage crisis.
Find more about Karl Heideck: http://www.phillypurge.com/2017/05/24/karl-heideck-explains-lawsuit-philadelphia-against-wells-fargo/