On May 15, a lawsuit against Wells Fargo, Inc. was filed by the City of Philadephia in the U.S. District Court for the Eastern District of Pennsylvania alleging that the bank used predatory lending practices aimed at minority mortgage borrowers. According to the city, the bank steered minority borrowers who should have qualified for low risk, low interest mortgages, to loans with riskier, higher interest loans, while steering white borrowers towards lower interest loans. This violates the Fair Housing act of 1968. When the recipients of the higher risk loans applied to refinance their loans, they were rejected, resulting in multiple home foreclosures, which ultimately ended up hurting the City of Philadelphia.
Wells Fargo is accused to have intentionally withheld low interest loans to applicants based on racial profiling. The City of Philadelphia is not the only entity suing Wells Fargo. The City of Miami has also recently filed a suit claiming that the bank had violated the Fair Housing Act. They were also accused of creating fake customer profiles to help their employees to meet their sales goals.
Karl Heideck has his B.A. in English Language and Literature from Swarthmore College a graduated with Juris Doctor from Temple University Beasley School of Law with honors. He currently is working with the law firm Grant & Eisenhower PA. Karl Heidek has over ten years of experience as a lawyer in Philadelphia. He specializes in civil litigation, compliance and risk management.
Mr. Heideck was also a project attorney for Pepper Hamilton LLP as well as holding an associate position at Conrad O’Brien. In addition to his work as an attorney, Karl Heideck is also a prolific writer, primarily blogging about current legal news in the city of Philadelphia and its surrounding area to keep better inform the public about what is happening in courtrooms.