We heard this story before.. Wells Fargo still is repeated offender in redlining…Court document is linked to the article…
Oakland is accusing Wells Fargo Bank of systematic predatory lending to minorities.
In a federal lawsuit filed last week, the city alleges that the bank targeted blacks and Latinos, steering them toward risky, likely-to-fail loans — the kind that caused many families to lose their homes in the ongoing foreclosure crisis.
Oakland City Attorney Barbara Parker says the city has collected proof, including the testimony of former Well Fargo employees, suggesting the bank intentionally gave more expensive loans to African-American and Latino residents. Parker says minorities with good credit were given bad loans, in contrast to loans given to white borrowers with the same credit and income.
“Some of the testimony that we have gotten indicates that they felt that these borrowers were less sophisticated,” Parker says. “In some cases there’s comments that they thought they were less intelligent. It’s hard to imagine that being the case today, but in effect that’s what happened over years.”