The City of Philadelphia has filed a lawsuit against Wells Fargo & Co. According to Karl Heideck, a renowned lawyer based in Philadelphia, the City of Philadelphia is accusing the bank of violating the Fair Housing Act of 1968. The lawsuit claims that the bank has been using predatory lending techniques that have seen borrowers from minority communities being preferred for high risk mortgage loans as compared to their white counterparts.
Heideck notes that Wells Fargo has denied the allegations. The bank states that it has faithfully adhered to fair practices and that its loaning services are based purely on merit. The company claims that the City is making unsubstantiated claims against it. The City of Philadelphia filed the lawsuit on May 15, 2017.
This lawsuit adds to the number of problems facing the bank. Recently, the bank faced a scandal whereby it was established that they have been opening fake accounts. These accounts are used to falsely represent the banks customer base and domination of the market. Wells Fargo Bank is headquartered in San Francisco.http://hackronym.com/the-attorney-behind-the-curtain-karl-heideck/
Hiedeck, who has thoroughly read the allegations made by the city against the bank, also shared further accusations made against it. He posits that Wells Fargo is accused of pushing Black and Hispanic borrowers to get loans that are riskier and have higher interest rates. This is in total disregard of the fact that these borrowers are qualified for lower-risk mortgages with lower interest rates. Moreover, the city alleges that Wells Fargo made it extremely hard for these clients to refinance their mortgage loans. From the lawsuit, Heideck adds that the City had determined that the bank was twice as likely to offer higher interest loans to Blacks as compared to Whites. The prevalent rate among Hispanic borrowers was 1.7 times that of White borrowers. Moreover, the city looked only at borrowers who had credit scores of above 660.
About Karl Heideck
Karl Heideck is a Philadelphia-based attorney. He has specialized in compliance, risk management review and litigation. Litigation is a complex process. The visionary leader holds a bachelor’s degree from Swarthmore College where he graduated in 2003. Karl Heideck earned a JD from Templeton University’s Beasley School of Law in 2009.
Karl Heideck has vast knowledge and experience in filing complaints for his clients and replying to them. He has also represented his clients in the court many times. Notably, Karl Heideck has rendered his services as an attorney for many years. As a writer, Karl continues to offer the public with more information on matters of law.