Wells Fargo has been in a lot of hot water as of late. It seems to be reeling after having near consecutive lawsuits filed against the bank holding company. It has adamantly denied any of the accusations and is fighting each one fiercely. It stands behind the beliefs that its practices are fair and there is no real proof to back up the claims.
The latest lawsuit against the company comes by way of the City of Philadelphia. The city is accusing Wells Fargo of redlining, which is the practice of denying loans to residents of a particular area or group of people. Redlining is a violation of the Fair Housing Act of 1968.
The city made several allegations against the bank from data from loans over a 10-year period. Some of which include: that the bank made the refinancing of mortgages more difficult for borrowers in the long run, white borrowers received lower interest loans than their black counterparts, and residents living in minority neighborhoods were almost 5 times more likely to have their homes foreclosed on.
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According to population, Philadelphia is the fifth largest city in the nation, with minorities accounting for over 50 percent of residents.
Philadelphia held off on filing its lawsuit against Wells Fargo until the Supreme Court of the United States decided the city of Miami could sue Bank of America and Wells Fargo under the Fair Housing Act roughly 14 days earlier. In addition, Philadelphia is being represented in their case by the same attorneys who represented Miami.
Wells Fargo is ready to fight any lawsuit being brought up against it. It insists that in its 100 plus years as an American bank it has only participated in legal and fair lending practices. The world will soon find out if the bank holding company is lying or telling the truth.
About Karl Heideck
Karl Heideck is a Philadelphia based attorney. He specializes in the litigation process.
Karl Heideck is also a scholar. In 2003 Swarthmore College he received his bachelor’s degree. He holds a JD from Templeton University Beasley School of Law.