Wells Fargo pays $175 million for racist lending

The Raw Story
By Agence France-Presse
Thursday, July 12, 2012

Wells Fargo pays $175 million for racist lending
Wells Fargo Bank has agreed to pay a $175 million "resolution" concerning "allegations" that they engaged in a scheme to charge higher interest rates to African-American and Hispanic borrowers.

They say they will pay rather than go to court.

And they deny the allegations.

Top US bank Wells Fargo is to pay $175 million to resolve allegations that it charged African-American and Hispanic borrowers higher fees and interest rates than whites, the Justice Department said Thursday.

The bank is accused of engaging “in a pattern or practice of discrimination against qualified African-American and Hispanic borrowers in its mortgage lending from 2004 through 2009.”

Customers were also steered toward riskier sub-prime loans, while their white peers received standard loan terms, according to the Justice Department.

Something is suspiciously missing with this story.

But I can't seem to put my finger on it.

Hmmm.

I would think the only time somebody gets "steered toward riskier sub-prime loans" is when you are not so "qualified"

Does anyone think this could be "Political" ?

Really funny thing here is those that are currently, or have in the past, paid those higher interest rates will more than likely continue to do so. Oh and that 175 million dollars goes to the government, not those individuals that were/are being taken advantage of. I would be willing to bet that Wells Fargo made billions.. Billions... in interest payments for these loans.

Originally posted by Cassey222
...Oh and that 175 million dollars goes to the government, not those individuals that were/are being taken advantage of...

That's the part that really just slays me. And what does the government do with it? Piss it away on "servicing" the debt; spend it on war materiél; stick it right back in the pockets of the likes of... Wells Fargo. Nobody wins. It's just for show....

The last paragraphs in the story clarify where the $175 million goes.

The San Francisco-based bank denies the claims, according to a statement Wednesday, but said it was settling to avoid litigation.

The bank will pay $125 million in compensation to around 4,000 customers who paid higher fees than white borrowers. It will also pay $50 million in direct aid to communities hard hit by the housing crisis.

The "Government" may have had "other ideas" however.
("Perception")

Sad but it happend.

I know first hand.