Just as it was recovering from its previous legal drama of fake customer accounts, Wells Fargo has been hit with yet another legal scandal. The City of Philadelphia has filed a lawsuit against Wells Fargo & Co. for violation of the Fair Housing Act of 1968. The lawsuit comes two weeks after the Supreme Court of the United States gave Miami the green light to sue Wells Fargo and Bank of America for violation of The Housing Act.
A law expert, Karl Heideck, gave a detailed account of the lawsuit. Philadelphia alleged that Wells Fargo had been employing predatory lending approaches towards minority mortgage borrowers. The lawsuit against the bank was filed in the US District Court for the Eastern District of Pennsylvania on 15th May 2017.
Karl posits that the city is accusing the San Francisco-based bank for offering Black and Hispanic borrowers riskier loans with higher interest loans despite of them being qualified for lower-risk and lower-interest loans. According to the lawsuit, this situation makes it difficult for the borrowers to refinance their mortgages, leading to a high number of foreclosures in their neighborhoods. Investigations of data from loans for the past decade indicated that Blacks and Hispanics are more likely to receive higher-interest loans compared to their White counter parts. Karl contends that increased foreclosures in minority neighborhoods have led to lower property values, thus harming the City of Philadelphia economically. The City of Philadelphia is requesting for undisclosed monetary compensation and wants Wells Fargo Bank to stop its discriminatory lending practices against the customers.
About Karl Heideck
Karl Heideck is a Philadelphia-based contract attorney. The executive has unique experience in the field given that he has been practicing for more than a decade. His service focuses on compliance, risk management, product liability, corporate law, employment proceedings and commercial litigation. He is an alumnus of Swarthmore College where he graduated in 2003. Karl Heideck proceeded to Templeton University Beasley School of Law and graduated with a JD in 2009. Later, he secured a litigation license.
The professional litigator is highly skilled in settlement, dispute resolution, communication, and negotiations. In the course of his career, Karl Heideck has filed and responded to complaints for numerous clients. He has demonstrated a deep passion and professionalism for his work, which has helped him to deliver excellent results. The litigation process usually includes obtaining personal jurisdiction, pretrial stage and post-trial. Litigation can also include legal steps like filing motions and responses for clients, and making appeals. Karl Heideck is also a writer. He shares much information about law through his blog.