A lawsuit has been filed and is seeking class action status against the second largest US mortgage lender alleging racial discrimination towards clients. The lawsuit was filed in US District Court for the Northern District of California and claims San Francisco based Wells Fargo discriminates against black homeowners in how it sets rates and fees.
The complaint accuses Wells Fargo of marking up interest rates or adding fees for black borrowers seeking mortgages after agreeing to lend, based on criteria such as credit histories and home values. Homeowners claim such acts violated the federal Fair Housing Act and Equal Credit Opportunity Act. The case seeks to make Wells Fargo halt any racially biased lending practices, improve employee training, reimburse unfair charges, and pay punitive damages.
