Wells Fargo & Co Banking To Pay Black & Latin Customers $175M
Wells Fargo & Co. banking is not the only bank to target and practice discrimination against Black people. However, the large banking chain will be one of the first to payout hundreds of millions of dollars to Black customers. Stealing money from Black and Latin customers 2004 to 2009, the major banking chain was forced to pay $175 Million dollars to those clients by the Justice departments. "The Department of Justice today filed the second largest fair lending settlement in the department’s history to resolve allegations that Wells Fargo Bank, the largest residential home mortgage originator in the United States, engaged in a pattern or practice of discrimination against qualified African-American and Hispanic borrowers in its mortgage lending from 2004 through 2009," said a statement from the U.S. Department of Justice. Wells Fargo & Co. fought this lawsuit but for months but the evidence was undeniable according to the Justice Department. Waiting for an approval from a judge, this whopping settlement would put close to an investigation over practices of targeting minorities for risky mortgage loans between 2004 and 2009. "It's amazing to me that if black or Latin people... if we robbed someone, we'd go to jail. We have people in jail for stealing food from stores to eat. The courts hold no one from Wells Fargo & Co. banking accountable the same way. Money is not everything, the banks probably made more off us than they are paying back" says C.KHiD, a rising Hip Hop music artist. The $175 million dollar settlement will be divided to two types of consumer situations. $125M will be compensation for minority borrowers the DOJ said to be steered into subprime mortgages. These borrowers found hidden terms in their loan agreement that left them with high fees. Some of these that led to foreclosure and lowering of credit score. Wells Fargo & Co. banking will pay the remaining $50 million dollars to directly assist borrowers in parts of the country where the DOJ find large numbers of mortgage scam victims. At a press conference, Deputy Attorney General James Cole stated the government will oversee the funds distribution to ensure Wells Fargo's borrowers hit hard by the housing market crisis will still have opportunity to own a home. The Department of Justice estimates 34,000 African-American & Hispanic borrowers dreaming of a new home, were scammed by Wells Fargo & company. Provided documents and testimonies believe the DOJ to believe this group ( and probably more ), across 36 states and the District of Columbia, were charged higher interest rates because of the color of their skin. This major settlement comes shortly after the Bank of America Corporation's Countrywide Financial scandal. The bank agreed to pay a record $335 million dollars for similar charges against Black and Latin mortgage borrowers.
Wells Fargo & Co Banking To Pay Black & Latin Customers $175M
Pics
[ photo ] Wells Fargo & Co. Banking graphic, showcasing Hispanic Customers in Line and San Francisco protest collage [ video ] Wells Fargo Co. Banking commits mortgage fraud, the official news report on PBS |
| » Return | ||
| C.KHiD UPdates | ||||
| ||||
|
| Hip-Hop & Rap Music | ||
|
| Hip Hop BlogRoll | |
