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: CL&P BlogIllinois sues Wells Fargo for Discrimination
By Alan White
Illinois Attorney General Lisa Madigan filed a Complaint on July 31 alleging that Wells Fargo violated state fair lending and consumer protection laws in its mortgage operations. The 62-page complaint elaborates in great detail the compensation systems that induced Wells Fargo loan officers to steer prime borrowers to subprime loans. The complaint also alleges that Wells Fargo engaged in marketing campaigns targeted at African-Americans to sell them subprime mortgages, and that foreclosures by Wells Fargo are now falling hardest on Blacks in Chicago and throughout Illinois.
Meanwhile on July 2 Federal District Court Judge Benson Legg denied Wells Fargo's motion to dismiss the City of Baltimore's lending discrimination complaint, and discovery is now proceeding on that suit.
Full post as published by CL&P Blog on August 06, 2009 (boomark / email).
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