Latest Allegations Against Wells Fargo Bank Reviewed By Attorney Karl HeideckOn August 22, 2017 by admin
Still reeling from a previous scandal, Wells Fargo Bank is in trouble again for allegedly conducting predatory lending practices in Philadelphia. The city has in fact filed a lawsuit over the latest allegations, which were revealed in a blog written by attorney Karl Heideck.
According to Karl Heideck, the bank violated the Fair Housing Act of 1968 by targeting minorities who were seeking home loans. The borrowers were reportedly encouraged to take out loans that came with higher interest rates and greater risks. The complaint also alleges that the bank intervened when the borrowers attempted to refinance their mortgages at a later time. A study of loan activity over a 10-year period showed that Caucasians were more likely to receive lower interest rates than minorities with equal credit scores.
In his blog, Heideck attributed the policy to increased foreclosures in minority communities, which in turn increased blight in these areas of Philadelphia. He further drew an analogy between this policy and redlining, a practice dating back decades that involves the refusal of banks to make loans to those living in certain communities. Wells Fargo has denied the latest charges, which come on the heels of another scandal that was revealed only last year. In that case, bankers had opened large numbers of bogus accounts for customers.
Karl Heideck is a contract lawyer employed by Hire Counsel, which provides customized legal services throughout the United States. Before joining the firm in 2015, he had gained experience as an attorney dedicated to serving the citizens and interests of Philadelphia. It was during that period of time that Karl Heideck became accustomed to handling a variety of legal complaints.
A 2009 graduate of the James E. Beasley School of Law at Philadelphia’s Temple University, Karl Heideck today provides assistance in such areas as risk management, corporate law and product liability. Karl Heideck is also known for his prolific writings covering the latest legal news.
Learn more about Karl Heideck: http://www.phillypurge.com/2017/05/24/karl-heideck-explains-lawsuit-philadelphia-against-wells-fargo/