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Wells Fargo to Pay $175M Over Lending Discrimination

African Americans, Hispanics allegedly got higher rates

By Evann Gastaldo,  Newser Staff

Posted Jul 12, 2012 12:42 PM CDT

(Newser) – From 2004 to 2009, Wells Fargo allegedly discriminated against African-American and Hispanic borrowers, and now the bank will pay at least $175 million to settle the matter, the AP reports. Wells Fargo is accused of charging such borrowers higher rates for loans, thus violating fair-lending laws. A deputy attorney general said today that more than 34,000 people in 36 states were affected.

An Occupy Oakland protester smashes a sign at a Wells Fargo bank branch on Wednesday, Nov. 2, 2011, in Oakland, Calif.
An Occupy Oakland protester smashes a sign at a Wells Fargo bank branch on Wednesday, Nov. 2, 2011, in Oakland, Calif.   (AP Photo/Noah Berger)
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COMMENTS
Showing 3 of 11 comments
JackNelsonSteward
Jul 12, 2012 5:50 PM CDT
$175 million ... for something they did for FIVE YEARS ... How much money do you think they made on those practices in those five years? See?  The penalty is just one of the "costs of business." If you knew you'd have to pay back $175 million ... would YOU do stuff that netted you a few BILLION? You'd have to be an idiot not to ... or a human with a soul.
milhousemn
Jul 12, 2012 2:24 PM CDT
Were the rates warranted?  How did the credit scores compare and what about default rates to date?
$3663674
Jul 12, 2012 2:03 PM CDT
If ever there was a dysfunctional and unscrupulous banking organization in the US, it would be Wells Fargo.   When my husband and I were in the market for a refi, and went comparison shopping between our Credit Union and WF, the WF rep outright lied to us telling us we'd have to pay a mysterious "transfer fee" if we dealt with our CU.    We did the zero points deal with the CU, saved 2 points over what WF was offering, and never paid a nickel more than the home inspection and title search.   Wells Fargo are lying liars who lie.  Period.

 
discrimination • Wells Fargo • lending practices • racial discrimination

 
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