On May 15, the City of Philadelphia filed a lawsuit against Wells Fargo for violating the Fair Housing Act of 1968. They claim that the bank preyed on minorities by using malignant lending practices. The City asserts that the bank convinced black and hispanic borrowers to buy into high risk loans with high interest rates, when they really should have been putting their best interest first and offering them lower interest rates on mortgages with little risk involved. The banks also allegedly made it very challenging for these people to refinance. This led many of them into foreclosure, which ultimately benefits the bank itself.
The City spent an entire year investigating and found these crimes went back ten years. They found that black borrowers were twice as likely as white people to be given loans with higher interest rates. Hispanics were 1.7 times as likely to be pressured into a higher interest rate. All the people examined were in similar financial standing and had similar credit rates. This is not the first time Wells Fargo bank has faced legal trouble for this type of situation.
Karl Heideck, a Philadelphia based attorney and the man who explained the above proceedings, is experienced in banking litigation and is currently employed as a Hire Counsel contract at Grant & Eisenhofer PA. He has over a decade of experience in the Philadelphia area, working in the compliance, litigation, and risk management field. Previously, Karl Heideck worked as project attorney for Hamilton LLP four years where he proved himself to be a reliable employee and devoted attorney.
Karl Heideck currently works in risk management advertisement and also offers compliance consulting. He is well versed in matters such as legal writing, litigation, product liability, intellectual property, legal research and many others. Additionally, Karl Heideck writes about his experiences and puts out information on his blog about contemporary legal developments to educate and benefit the public.
Visit waterworld.com for more information about Karl Heideck.