City of Sacramento Sues Wells Fargo for Discriminatory Lending

Another lawsuit has been filed against Wells Fargo, this one claiming the company discriminated against black and Latino homebuyers. The federal lawsuit was filed by the city of Sacramento last month. The city claims that Wells Fargo had a pattern of illegal lending in minority and low-income communities, which reduced home values and increased foreclosures.

How Did Wells Fargo Take Advantage of Minorities?

According to the lawsuit, black Wells Fargo borrowers in Sacramento with credit scores above 660 were 2.8 times more likely to receive a low-cost or high-risk loan than comparable white borrowers. And Latinos were 2.8 times more likely. Giving out these loans put vulnerable people in a risky financial situation.

Additionally, the lawsuit accuses Wells Fargo taking advantage of the language barrier with Spanish-speaking borrowers. One former employee said that while the bank advertised mortgages in Spanish, the paperwork was not in Spanish—if the transaction was handled in Spanish. One former Wells Fargo employee even admitted that loan officers were likely to charge borrowers with Mexican names a higher rate. Sacramento claims these practices directly caused an excessive number of foreclosures in the city.

Other States Accuse Wells Fargo of Discriminatory Lending

This is not the first time a city has accused Wells Fargo of such discriminatory practices. Last year, the city of Philadelphia sued Wells Fargo for encouraging workers to push the use of higher-cost loans to minorities. Baltimore and Miami have also accused the bank of similar practices.

“These discriminatory practices by Wells Fargo were predatory and unethical. They should be held responsible for the damages caused,” said Attorney Walter Clark, founder of Walter Clark Legal Group.

Our firm has been handling personal injury cases throughout the California Low Desert and High Desert communities for over 30 years. With a 95% success rate, the California personal injury attorneys at Walter Clark Legal Group will fight to hold those responsible for your loss accountable and win compensation to cover medical bills, lost wages, and pain and suffering. If you have been injured and want to discuss your legal options, contact us today for a free consultation with an experienced personal injury lawyer. We have offices in Indio, Rancho Mirage, Victorville, and Yucca Valley and represent clients through the entire California Low Desert and High Desert communities.

DISCLAIMER: The Walter Clark Legal Group blog is intended for general information purposes only and is not intended as legal or medical advice. References to laws are based on general legal practices and vary by location. Information reported comes from secondary news sources. We do handle these types of cases, but whether or not the individuals and/or loved ones involved in these accidents choose to be represented by a law firm is a personal choice we respect. Should you find any of the information incorrect, we welcome you to contact us with corrections.

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