Recent news indicates that the City of Philadelphia has sued Wells Fargo & Company alleging that the bank, which is based in San Francisco, is violating the Fair Housing Act of 1968. The City claims that the bank is using predatory lending practices that are hurting the minority mortgage borrowers. The City of Philadelphia filed the lawsuit against the bank on 15th May in the district court in the US.
The City of Philadelphia is the fifth largest city in America. It also has a large population of minority population made up of the black and Hispanics. The lawsuit alleges that minority neighborhoods are facing higher foreclosure rates than other regions in the city because of the practices of Wells Fargo. The city wants the bank to compensate for unspecified monetary damages as well as an injunction against Wells Fargo forcing it to stop using the practices that discriminate minority borrowers in the city. The city of Philadelphia alleges that Wells Fargo was involved in the predatory lending practices from 2004 to 2014.
Wells Fargo has reacted to the lawsuit through its spokesperson saying that all the allegations are not true. The spokesperson said that all the claims were unsubstantiated noting that it has served the residents of Philadelphia for the past 14 decades and it uses fair lending practices and responsible practices. However, the bank has not yet filed any written legal answers to the complaint.
Wells Fargo is facing several other lawsuits and the recent trial by the city of Philadelphia is the latest legal headache being faced by the bank. Wells Fargo is still recovering from a scandal of creating fake accounts to enable it to meet its sales goals. The lawsuit has also come two weeks after the Supreme Court of the US gave a ruling stating that Miami could sue Wells Fargo and Bank of America under the Fair Housing Act. The judge said that the city could file a lawsuit against the bank if they have evidence showing a causal link between the harms they went through and the predatory lending practices. The bank is alleged to be involved in a tradition that dates back to the 1930s known as redlining.
About Karl Heideck
Karl Heideck graduated in 2003 with a bachelor’s degree from Swarthmore College. Karl was determined to become a licensed litigator explaining why he joined Templeton University Beasley School of Law. Here, he received his JD in 2009. Karl understood that education was the first step to entering the legal field.
Heideck is an expert in filing complaints on behalf of clients. He received the experience while working as an attorney in Philadelphia. Karl has experience in handling the entire litigation process including post-trial, getting personal jurisdiction, and pretrial.