News reports state that the City of Philadelphia made a lawsuit against the Wells Fargo & Co. It was alleging that the company has made a violation of the Fair Housing Act of 1968 through use of predatory lending practices that are meant for the minority mortgage borrowers. However, Wells Fargo denied the allegations and stated that its practices were fair and that the city has made unsubstantiated claims in the law suit. Filed on May 15, the lawsuit was made in the United States District Court for the Pennsylvania’s Eastern District. The lawsuit is also the latest in the series of problems for the Wells Fargo company. The company is still healing from a recent scandal that involved its bankers using customer’s names to open bogus accounts.
As explained by Karl Heideck on phillypurge.com, the City of Philadelphia says that the bank of Wells Fargo led Hispanic and black borrowers into loans with high risks as well as higher interest rates although they were qualified for lower-risk mortgages and lower interests. The city also alleged that Wells Fargo made it almost impossible for the said borrowers to later refinance their mortgages. Before it filled the lawsuit, the city made investigations of its claims for one year. It looked at data from loans made by Wells Fargo in a span of more than 10 years. According to the City of Philadelphia, Wells Fargo charged higher interests on loans by black borrowers compared to their white counter parts. As a result of these actions by the bank, there was blight in minority neighborhoods.
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Karl Heideck is a legal practitioner who is based in Philadelphia. He commits his legal practices in sectors of compliance, risk management and litigation. He is a graduate of the Temple University Beasley School of Law where he managed to get his Juris Doctor. Karl Heideck also graduated from the Swarthmore College where he acquired his Bachelor’s Degree of Arts in Literature and English Language. Due to the many years he has worked in the legal sector, Karl Heideck has acquired a reputation as a reliable and efficient attorney who is focused on assisting the community of the greater Philadelphia.
Learn more about Karl Heideck: http://thereisnoconsensus.com/career-spotlight-litigation-karl-heideck/