News headlines have been flooding with the case of Philadelphia against Wells Fargo, aprominent banking institution. According to the filed lawsuit, Wells Fargo has been unfair in its lending agreement where the bank issues predatory lending practices to specific people. Although Wells Fargo denied the accusations, it is evident that there is a race that was denied fair lending practices according to the legal report. This is a violation of the fairness act legislated in 1968. Wells Fargo insisted that its lending practices are standard to every client. Having been filed on May 15th, the legal issue continues to raise eyebrows among the residents of Philadelphia.
Content of Complaints
Philadelphia’s allegations concerning Wells Fargo states that the black Hispanic community has been locked out of fairer loans with lesser interests. This group has been exposed to unfair lending practices featuring high-risk discouraging loans. Philadelphia also states in the allegations that Wells Fargo has set unfair lending practices to this set of borrowers by issuing refinancing mortgages. This policy forces a higher percentage of interest that calls for heightened interests. For one year, Philadelphia had been investigating these patterns by ensuring that the data is factual.
According to Karl Heideck, Wells Fargo is practicing redlining. This term was famously usedin the past. It means that the bank is locking out a specific group of people from fair lending practices. Usually, this group of people belongs to a specific race or neighborhood. In this scenario, the black Hispanic community has been locked out of fair lending practices. Redlining is an illegal activity punishable by the judicial system. It is however not illegal if the practice is confided to people who fail to meet average living standard like living in normal set up.
Karl Heideck is a lawyer. The alumnus of Temple University based in Beasley School majored in law. He also pursued arts at a degree level from the Swarthmore College. Karl Heideck is internationally recognized and he focuses on legal practices that seek to make the society a better place. Karl Heideck specializes in litigation, compliance as well as risk management. Karl Heideck issues risk management analysis through articles and lecturers. Karl Heideck is equipped with vast experience in litigation matters. He is a legal advisor too.
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