The City of Philadelphia has taken another swing at Wells Fargo, this time alleging that the bank has been discriminating against minorities.
In a federal court complaint, the city alleges that Wells Fargo pushed minorities into riskier loans with higher rates, even in cases where the borrowers had credit profiles that would have qualified them for lower-rate loans.
The complaint charges that the problem has been ongoing since 2004 and is a violation of the Fair Housing Act, and comes in the wake of an important Supreme Court decision on the legislation. On May 1, the high court ruled that Miami could sue Bank of America for predatory lending practices that allegedly increased segregation.
"The City of Philadelphia's investigation revealed that both the resources of the city and the lives of Philadelphia's citizens have been negatively affected by Wells Fargo's discriminatory lending practices," city Solicitor Sozi Pedro Tulante said in a statement. "The Law Department must take action in light of this evidence and halt these discriminatory practices on behalf of the citizens of Philadelphia."