Wells Fargo Racial Discrimination Lawsuit
A black woman from South Florida has filed a Wells Fargo racial discrimination lawsuit, claiming that the bank failed to treat her fairly. She alleges that she was denied access to an ATM because she is black. Despite having a clean credit report, Monroe was refused service when she attempted to withdraw $140 from her bank account. Although Wells Fargo has denied her allegations, her story may help others.
Wells Fargo discriminated against Black and Hispanic wholesale borrowers
According to a lawsuit filed in 2014, Wells Fargo discriminated against Black and Hispanic wholesale borrowers by charging them higher interest rates and fees. The difference between white and black wholesale borrowers was due to differences in underwriting practices and race. However, the bank’s business allowed loan officers and mortgage brokers to set prices based on objective factors, including credit scores and debt-to-income ratios.
The settlement also included an agreement by the bank to pay $125 million to the borrowers affected by its discrimination practices, as well as $50 million for community development programs in eight cities. The settlement amounts to $125 million and is currently subject to approval by the U.S. District Court in Washington, D.C. The company has agreed to pay the money to the borrowers, and the settlement amounts are the second-highest settlement of this kind.
Wells Fargo used the same underwriting practices for all customers
A federal judge is weighing a Wells Fargo motion to dismiss a class-action lawsuit that alleges the bank made risky commercial real estate loans that were underwritten using the same underwriting practices for all customers. The bank’s actions are one of the latest examples of the company’s failure to consider the full risk profile of a customer, and they come at a time when the bank is under increased scrutiny over its mortgage underwriting practices.
Despite these findings, Wells Fargo’s executives defended their actions, claiming that they followed the same standards for all customers. As a result, the bank adopted several underwriting practices to shift the risk onto customers. One such practice involved flagging borrowers’ files for missing information that would make them have to file a fresh application, blowing the deadline.
Wells Fargo refused to cash a check for $140
Recently, black woman Barbara Carroll filed a lawsuit against Wells Fargo for refusing to cash a check for $140. She was told by a bank teller that she was a fraud suspect and allegedly faked the check, but a white teller defended her by saying that they had called the police. After nearly two hours of waiting, Carroll finally called 911. The police arrived and checked her ID. When the police arrived, she was able to walk away with her money. Now, Carroll is seeking an apology from Wells Fargo and changes to the bank’s policies regarding black customers.
The complaint also alleges that Wells Fargo violated the 1866 Civil Rights Act by refusing to cash the check. This act established the rights of black Americans to enter contracts and services. The case argues that Wells Fargo violated the law by refusing to cash a $140 check despite its “discriminatory” policies.
The latest Wells Fargo racial discrimination lawsuit comes from a Black man who works in prison. In the lawsuit, Paul Dawson claims that he was discriminated against when he visited a branch. When he tried to open an account, bank employees told him that he wasn’t a good fit for the bank. Wells Fargo denied the accusations and wrote to Dawson to say that it doesn’t tolerate discrimination. They also filed a motion to keep Mr. Dawson from learning of any prior discrimination. Fortunately, the judge denied this motion and the lawsuit has now been filed.
In addition to the federal lawsuit, the Pennsylvania Human Relations Commission filed an investigation and settlement with Wells Fargo in February. The complaint found that the company engaged in discrimination against African Americans, Hispanics, and white borrowers. While the government’s investigation reveals some cases, the company is still under investigation by the Department of Justice. The settlement will be a huge blow to Wells Fargo, but it does not necessarily mean that discrimination is gone forever.